Monthly Benefit Scheme

ALL ABOUT MONTHLY BENEFIT SCHEME

A.    Monthly Benefit Scheme:

A Monthly Benefit Scheme is a type of fixed deposit scheme where investors get their fixed interest earning on monthly basis. Consumers can invest a fixed amount for a fixed period time at a fixed rate of interest to receive a monthly fixed return over a certain period of time as interest earning. Monthly accrued interest will be transferred from the fixed deposit to the applicant's savings / current account.  Principle amount will remain constant and return backed at maturity.

 

B.    Purpose:

The purpose of Monthly Benefit Scheme is to hold your heard earned money in a secured location that gives a fixed monthly return to secure your monthly personal expenditure. The main objective of Monthly Benefit Scheme, helps to restrict the chances of spending your heard earned money impulsively, locate it in a fixed deposit account for a fixed period time at a fixed rate of interest and receive a monthly fixed return over a certain period of time.

 

C.    Benefits:

-  Tax benefit;

-  Flexible tenure;

-  Monthly fixed return;

-  Capital appreciation;

-  Secured investment;

-  Growth of investment;

-  Quick processing time;

-  Increase savings nature;

-  Flexible investment amount;

-  Compulsory way of savings;

-  Low processing fees & charges;

 

D.    Some Basic & Common Features:

Financial institutions are offering a wide range of attractive features for the consumers, who wants to invest on a Monthly Benefit Scheme. Following are some basic and common features of Monthly Benefit Scheme offered by most of the Bank & NBFI’s.

-  Fixed monthly return;

-  Attractive interest rates;

-  Flexible investment tenure;

-  Flexible investment amount;

-  Auto renewal facilities;

-  Loan / overdraft facilities;

-  Partial encashment facilities;

-  Pre mature encashment facilities;

-  Insurance coverage;

-  Minimum documentation;

 

E.    Investment Limit:

Most of the financial institutions are referring minimum BDT 50,000.00 to maximum BDT 20,00,00,000.00 as investment limit.

 

F.    Investment Tenure Parameters:

Consumers may invest their heard earned money in any Monthly Benefit Scheme for following tenures.

-  1 Year;

-  2 Years;

-  3 Years;

-  5 Years;

-  7 Years;

-  10 Years;

-  12 Years;

 

G.    Interest Rates:

Monthly Benefit Scheme mainly is a high interest bearing investment product. Most of the financial institutions are offering 5% - 7% of interest rates calculate based on investment amount and investment tenure.

 

H.    Fees and Charges:

There are few fees & charges may applicable to a Monthly Benefit Scheme. Most common fees & charges are as follows:

-  Account opening fee;

-  Auto renewal charges;

-  Partial encashment charges;

-  Pre mature encashment charges;

-  Account closure fee;

-  Other fees & Charges;

 

I.     Monthly Benefit Scheme Account Opening Eligibility Factors:

Monthly Benefit Scheme account opening eligibility depends on many more factors. Most of the financial institutions are considering following eligibility factors before approving any Monthly Benefit Scheme account opening application.

 

       (a)   Who Can Open Account?

              Any individual and/or non-individual bodies with a valid source of income.

 

       (b)   Age Limit

              Most of the financial institutions are maintaining minimum 18 years age limit for the individual consumers.

 

       (c)   Professional Experience

There is no minimum professional experience required to operate a Monthly Benefit Scheme in any financial institution.

 

       (d)   Minimum Monthly Income

There is no minimum monthly income level to operate a Monthly Benefit Scheme in any financial institution.

 

       (e)   Proof of Identity

To open a Monthly Benefit Scheme every individual and/or non-individual bodies have to provide proof of identity with supportive documents in accordance of respective Bank and applicable law of the land.

 

J.    Things to Consider Before Applying to Open a Monthly Benefit Scheme:

Before applying to open a Monthly Benefit Scheme account, consumers should consider the following things.

-  Interest rates;

-  Fee & charges;

-  Investment limit;

-  Investment tenure;

-  Auto renewal facilities;

-  Loan / overdraft facilities;

-  Partial encashment facilities;

-  Pre mature encashment facilities;

-  Flexible interest encashment mode;

-  Insurance coverage;

-  Required documents list;

-  Compare all financers rates & features;

 

K.    Required Documents:

To open a Monthly Benefit Scheme account there are various types of documents are required. Proper documentation the only possible way to open an account. Most of the financial institutions are considering similar guidelines in respect to the documents required. A generic list of such documents has been provided below:

-  Complete account opening form;

-  Nominee;

-  Introducer;

-  e-TIN certificate;

-  Photograph (if individual);

-  Proof of age (if individual);

-  Proof of identity (if individual);

-  Proof of income (if individual);

-  Proof of address (if individual);

-  Proof of nationality (if individual);

-  Meeting Minutes (if non-individual);

-  Proof of business identity (if non-individual);

-  Valid permission / license (if non-individual);