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Have you seen the lien amount mark in all the bank accounts? If yes then it is very important to know why this mark is charged on your account. So the first thing to understand is that what does this lien amount mean?

Whether you are an SBI account holder or one of those people who want to open an account in SBI. It is very important for you that you have all the information about all the bank accounts and the lien amount. Many people do not have a clear idea about the lien amount. But you can know all the details about the lien amount with the help of this article.

What is Lien Amount in SBI or any other bank account?

Lien meaning or meaning of lien amount :- The Lien amount Indicates a lock that has been placed on your account. When it comes to the lien amount, be aware that the bank locks a particular amount for a specific time.

But when the amount gets frozen, then you are not able to withdraw it and use it for any purpose. When the lock is removed from your bank account, you can withdraw it or use it. The bank has the right to put the lien on the entire particular amount.

Reasons why the bank is putting a lien or lien amount in SBI

In Simple words, Lien means blocking the full amount or some

There is a question that comes to your mind that what is the Hindi meaning of lien then ” dharnikaran” is the lien meaning in Hindi.

When you take a loan from the bank after completing your funds, the bank makes a loan on your fixed deposit.

When it comes to general lien, the banker has the right to put a lien on all the deposits in the name of the depositor for some time. In this case, the depositor is responsible to pay some amount to the bank.

How one can clear the lien amount? or How to remove lien amount in sbi online ?

When the bank marks the lien amount on the balance, then the individual has to put some balance required in it. After setting all the liabilities, the bank removes the lien mark from your account. After removing the lien, then you can use your additional funds from your bank account.

If you fail to set the liabilities, the bank will use the funds in your account to set the lien amount. If you want to solve some issues related to Lien, then you have to go to the home branch and talk to the officer there. You can also set up the lien by calling the customer care service of the bank. If you have any other questions or queries regarding this topic then you can read faqs on SBI’s official website.

How one can get back the lien amount in sbi?

If the bank puts a lien mark on your account due to a minor mistake. So you can go to the branch and ask questions related to that queries. All the issues will be solved by the bank and they will remove the lien mark from your account.

It is not a good thing for any bank account holder that SBI or any other bank has charged the lien amount on his account. This may cause issues in the transaction of your particular account and even if you open two accounts in the same branch and one account gets charged by the lien. In this case, if you fail to pay money from one account then they will deduct money from your other account, and in the end, it becomes money drainage

If you deposit some security deposit in your account in addition to the fixed deposit So you can be sure that the lien amount has not been charged to your bank account. As the lien amount gets deposited in your account, then the bank stops the entire activity of your amount. Due to which you cannot do other transactions, then you must be sure that you are not breaking any rules of the bank.

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The Tamil Nadu power finance corporation is an organization completely owned by the government of Tamil Nadu. It is registered with the Reserve Bank of India as a Non-Banking Finance company. It gathers money through various deposits plan. It offers financial help to power and infrastructure ventures and grants money to Tamil Nadu Generation and Distribution Corporation Limited.

The finance corporation has been working in profit since the beginning. It affirmed dividends at the rate of thirty percent after tax for the fiscal year 2017-18. Their deposit plans are following the Reserve Bank of India’s guidelines.

One thing that needs to be focused on is that these fixed deposits schemes are not explicitly indicated as surety by the government of the state of Tamil Nadu and are not said to be mentioned on the website or in the application form.

Although being an entity completely owned by the Tamil Nadu government makes the fixed deposit schemes safe. They offer interest rates as high as 10.46 percent. The TN power finance FD can be started online that is easier than the traditional process of visit the point of the process. There are a few factors like the early withdrawal principle, the slow dispensation of transactions. It provides two fixed deposits choices

• Non-Cumulative Choice

The non-cumulative fixed deposit is where the interest is paid every month, every fourth month, or yearly. When it matures, the money invested by you will be earned back. These fixed deposits are available for 24 months, 36 months, 48 months, and 60-month time limits. The interest rate could be between 7 percent to 8.7 percent depending on the tenure. People above the age of sixty get a half percent extra interest rate on those tenures.

• Cumulative Interest Choice

The cumulative interest choice fixed deposit plan where the interest would be compounded and paid after the scheme matures. The period of these fixed deposits is 12 months, 24 months, 36 months, 48 months, and 60 months. Interest rates range between 7 percent to 8.5 percent, depending on the period of the fixed deposit chosen by you. People above the age of sixty get an extra 0.5 percent on a specific period.

The people who are eligible to open the fixed deposits here are residents of the state, Hindu families, people who work for trust, government institutions, a private institution, societies. Nonresident Indians can also open this fixed deposit scheme with a few terms and conditions.

These days all the fixed deposits can be opened online but the government institutions fixed deposits plans are opened manually. Yet, Tamil Nadu Power Finance fixed deposit plans online service is available all the time.

You can also open Tamil Nadu Power and Finance Corporation fixed deposits offline by submitting the vital documents to the nearest offices. You can also check the official website for more information.

Documents required for opening Tamil Nadu Power Finance Fixed Deposit Scheme

You need to submit an Aadhaar Card to open Tamil Nadu Power Finance Fixed Deposit. In case depositor chooses to have a different address other than the address indicated in the other, any of the below documents needs to be submitted as Proof of Address that is passport, voter identification card, driving license, ration card, telephone bill of the recent months, bank Account Statement of a bank.

If the address given in the mentioned documents is different from your current address, a photocopy of any one of the mentioned documents should be submitted for residential address proof. 

Advantages of investing in Tamil Nadu Power Finance Corporation Fixed Deposits

• It is safe to invest in Tamil Nadu Power Finance Corporation Fixed Deposits as they are owned by the state government of Tamil Nadu. Although they cannot be held responsible for a mishap in the market crash and they don’t guarantee it in any way.
• In this fixed deposit plan, you can invest as little as fifty thousand rupees and get a good Tamil Nadu power finance FD rate of interest of almost 8 percent for the usual investors and up to 8.77 percent for people above the age of sixty and get a higher profit of 10.46 percent.

• One gets to choose from many fixed deposit schemes in cumulative fixed deposits, you can get interested in your fixed deposit every month, every three to four months, or once a year.

Some minor disadvantages of investing in Nadu Power Finance Corporation Fixed Deposits

• You cannot withdraw any money from the fixed deposits before it matures
• The fixed deposits opening and closing will be according to the state government’s timing. It won’t take place the same way it does in public sector banks or private banks. The entire process of opening and closing an account will take a lot of time

Frequently Asked Questions (FAQs)

#1 Is there any kind of taxation on the fixed deposits?

The Tamil Nadu Power Finance Corporation taxes the same way as any other financial institute. It would deduct on interest on five thousand rupees a year. However, one needs to pay income tax on the complete interest paid to you.

#2 Can someone take a premature withdrawal from a fixed deposit?

Yes, one can take a premature withdrawal but you will need to inform the institute 15 days ahead of the withdrawal. You can make a withdrawal only after three months to six months where no interest would be paid.

#3 When will the interest be paid?

The interest on non-cumulative deposit will be paid on the last day of the month or the quarter of the year.

#4 Can Non-Resident Indians invest in this fixed deposit?

The deposits will be accepted under the income tax act of 1961. These deposits are accepted for a maximum time of three years. The money deposited for the fixed deposit should be taken out from their NRE account and then transferred to the NRO account. The money cannot be sent outside the country for any kind of payment. Only after maturity it is allowed.

So, Now you know the advantage, disadvantage and all other information about tamilnadu power finance corporation fixed deposit rates. Hope this helps you to decide make good investment.

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