Pigmy Deposit Scheme is a monetary deposit scheme introduced by Syndicate Bank, India.

Money can be deposited into an account on daily basis. The amount may be as small as Rupees Ten. It can be called a recurring deposit scheme, as the money is deposited almost daily. The unique characteristic of this scheme is that a bank agent collects the money daily, from the account holder's doorstep. This scheme was introduced by Syndicate Bank headquartered at Manipal, Udupi district of India. The scheme was introduced to help daily wage earners, small traders and farmers to inculcate a saving habits and also as a means to fund their bigger capital requirements, such as a wedding, home buying, vehicle purchase etc. The scheme is now offered by several other banks in India. They were treated as part and parcel of the banking and trading system often carrying legitimate and confidential market and trading information within the network and contributed to the development of stock exchanges. The trading system is not complete without recognising them as the pillars of funds deposit system, in India; especially. As they were enjoying high level of confidence amongst the business community they even took part in personal affairs of traders-big and small and also took part in various social activities again within the network. Many a competition were held to recognise the efforts of these tiny soldiers armed with highly noticeable market or marketing skills that led to the popularity of Pigmy Deposit Collection system in India. It is learned from reliable sources that the Pigmy System is being introduced overseas and U.A.E has given it a modern name "mobile banking". It will be not a surprise if Western Bankers gave a serious thought in introducing this as it will generate revenue, market enthusiasm and works as a defense mechanism should a bank be in need of one.... This also generated huge deposits over a period and also created long-term and sustainable employment to youth who like freedom and also enjoy mingling with market enthusiasts as well as in creating market sensation (sometimes). "A day or evening is not complete without the visit of these Pigmy collectors on the premises of a trader or the depositor". ecurring Deposits are a special kind of Term Deposits offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn [1] interest at the rate applicable to Fixed Deposits. It is similar to making FDs of a certain amount in monthly installments, for example Rs 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings throughregular monthly deposits of fixed sum over a fixed period of time. The Recurring Deposit can be funded by Standing instructions which are the instructions by the customer to the bank to withdraw a certain sum of money from his Savings/ Current account and credit to the Recurring Deposit every month. When the RD account is opened, the maturity value is indicated to the customer assuming that the monthly installments will be paid regularly on due dates. If any installment is delayed, the interest payable

in the account will be reduced and will not be sufficient to reach the maturity value. Therefore, the difference in interest will be deducted from the maturity value as a penalty. The rate of penalty will be fixed upfront. To calculate the maturity value of a recurring deposit account, there is a formula used by banks. Tax Deducted at Source ( TDS ) is not applicable on RDs. The customer can avail loans against the collateral of Recurring deposit up to 80 to 90% of the deposit value. Rate of Interest offered is similar to that in Fixed Deposits. At present it seems to be one of the best method to save the amount yield after years of deposit because TDS is not applicable on RDs. A fixed deposit (FD) is a financial instrument provided by Indian banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date . It may or may not require the creation of a separate account. It is known as a term deposit or time deposit in Canada, Australia, New Zealand, and the US, and as a bond in the United Kingdom. They are considered to be very safe investments. Term deposits in India is used to denote a larger class of investments with varying levels of liquidity. The defining criteria for a fixed deposit is that the money cannot be withdrawn for the FD as compared to a recurring deposit or a demand deposit before maturity. Some banks may offer additional services to FD holders such as loans against FD certificates at competitive interest rates. It's important to note that banks may offer lesser interest rates under uncertain [1] economic conditions. The interest rate varies between 4 and 11 percent. The tenure of an FD can vary [2] from 10, 15 or 45 days to 1.5 years and can be as high as 10 years. These investments are safer than Post Office Schemes as they are covered under the Deposit Insurance & Credit Guarantee Scheme of India. They also offer income tax and wealth tax benefits. [edit]Explanation Fixed deposits are a high-interest-yielding Term deposit offered by banks in India. The most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of Demand deposit and Fixed deposit). Usually in India the interest on FDs is paid every three months from the date of the deposit. (e.g. if FD a/c was opened on 15th Feb., first interest instalment would be paid on 15 May). The interest is credited to [4] the customers' Savings bank account or sent to them by cheque. This is a Simple FD. The customer may choose to have the interest reinvested in the FD account. In this case, the deposit is called the Cumulative FD or compound interest FD. For such deposits, the interest is paid with the invested [5] amount on maturity of the deposit at the end of the term. Although banks can refuse to repay FDs before the expiry of the deposit, they generally don't. This is known as a premature withdrawal. In such cases, interest is paid at the rate applicable at the time of withdrawal. For example, a deposit is made for 5 years at 8%, but is withdrawn after 2 years. If the rate applicable on the date of deposit for 2 years is 5 per cent, the interest will be paid at 5 per cent. Banks [4] can charge a penalty for premature withdrawal. Banks issue a separate receipt for every FD because each deposit is treated as a distinct contract. This receipt is known as the Fixed Deposit Receipt (FDR), that has to be surrendered to the bank at the time [6] of renewal or encashment.

Many banks offer the facility of automatic renewal of FDs where the customers do give new instructions for the matured deposit. On the date of maturity, such deposits are renewed for a similar term as that of the original deposit at the rate prevailing on the date of renewal. Income tax regulations require that FD maturity proceeds exceeding Rs 20,000 not to be paid in cash. Repayment of such and larger deposits has to be either by " A/c payee " crossed cheque in the name of the customer or by credit to the saving bank a/c or current a/c of the customer. [edit]Some

Benefits of FD

Customers can avail loans against FDs up to 80 to 90 per cent of the value of deposits. The rate of [7] interest on the loan could be 1 to 2 per cent over the rate offered on the deposit. Non resident Indians and a Person of Indian Origin can also open these accounts.

[edit]Taxability Tax is deducted by the banks on FDs if interest paid to a customer at any branch exceeds Rs. 10,000 in a financial year. This is applicable to both interest payable or reinvested per customer or per branch. This is called Tax deducted at Source and is presently fixed at 10% of the interest. Banks issue Form 16 A every [8] quarter to the customer, as a receipt for Tax Deducted at Source. If the total income for a year does not fall within the overall taxable limits, customers can submit a Form 15 G (below 65 years of age) or Form 15 H (above 65 years of age). A time deposit (also known as a certificate of deposit in the United States, a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom; Fixed Deposits in India and in some other countries) is a money deposit at a banking institution that cannot be withdrawn for a certain [citation needed] "term" or period of time (unless a penalty is paid) . When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. In its strict sense, certificate deposit is different from that of time deposit in terms of its negotiability: CDs are negotiable and can be rediscounted when the holder needs some liquidity, while time deposits must be kept until maturity. The opposite, sometimes known as a sight deposit or "on call" deposit, can be withdrawn at any time, without any notice or penalty: e.g., money deposited in a checking account or savings account in a bank. The rate of return is higher than for savings accounts because the requirement that the deposit be held for a prespecified term gives the bank the ability to invest it in a higher-gain financial product class. However, the return on a time deposit is generally lower than the long-term average of that of investments in riskier products like stocks or bonds. A deposit of funds in a savings institution is made under an agreement stipulating that (a) the funds must be kept on deposit for a stated period of time, or (b) the institution may require a minimum period of notification before a withdrawal is made. "Small" time deposits are defined in the U.S. as those under $100,000, while "large" ones are $100,000 or greater in size. The term "jumbo CD" is commonly used in the United States to refer to large time deposits. In the U.S., banks are not subject to a reserve requirement against their time deposit holdings.

A time deposit (also known as a certificate of deposit in the United States, a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom; Fixed Deposits in India and in some other countries) is a money deposit at a banking institution that cannot be withdrawn for a certain [citation needed] "term" or period of time (unless a penalty is paid) . When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. In its strict sense, certificate deposit is different from that of time deposit in terms of its negotiability: CDs are negotiable and can be rediscounted when the holder needs some liquidity, while time deposits must be kept until maturity. The opposite, sometimes known as a sight deposit or "on call" deposit, can be withdrawn at any time, without any notice or penalty: e.g., money deposited in a checking account or savings account in a bank. The rate of return is higher than for savings accounts because the requirement that the deposit be held for a prespecified term gives the bank the ability to invest it in a higher-gain financial product class. However, the return on a time deposit is generally lower than the long-term average of that of investments in riskier products like stocks or bonds. A deposit of funds in a savings institution is made under an agreement stipulating that (a) the funds must be kept on deposit for a stated period of time, or (b) the institution may require a minimum period of notification before a withdrawal is made. "Small" time deposits are defined in the U.S. as those under $100,000, while "large" ones are $100,000 or greater in size. The term "jumbo CD" is commonly used in the United States to refer to large time deposits.

How to calculate the current account

Normally, the current account is calculated by adding up the 4 components of current account: Goods, [4] services, income and current transfers.

Goods

Being movable and physical in nature, goods are often traded by countries all over the world.

When a transaction of certain good's ownership from a local country to a foreign country takes place, this is called an "export." The other way around, when a good's owner changes to a local inhabitant from a foreigner, is defined to be an "import." In calculating current account, exports are marked as credit (the inflow of money) and imports as debit. (the outflow of money.)

Services

When an intangible service (e.g. tourism) is used by a foreigner in a local land and the local

resident receives the money from a foreigner, this is also counted as an export, thus a credit. [edit]Income A credit of income happens when an individual or a company of domestic nationality receives money from a company or individual with foreign identity. A foreign company's investment upon a domestic company or a local government is also considered as a credit. [edit]Current

Transfers

Current transfers take place when a certain foreign country simply

provides currency to another country with nothing received as a return. Typically, such transfers are done in the form of donations, aids, or official assistance. [edit]A

formula for calculating current accounts Thus, one can see that a certain

country's current account can be calculated by the following formula:

CA = (X - M) + NY+NCT

When CA is the current account, X and M the export and import of goods and services respectively, NY the net income from abroad, and NCT the net current transfers.