4.35% - 5.95%
Interest rates
3 months - 10 years
Time Period
10,000 - no limit
Min. - Max amount
QUARTERLY
Compounding
About DCB Bank FD
Formerly, known as the Development Credit Bank, DCB Bank has a network of 334 branches spread across 19 states and 3 union territories in the country. The financial institution is essentially a new generation private sector bank and offers several popular financial products including, fixed deposits.
In fact, the fixed deposit scheme offered by DCB is considered to be one of the popular deposit schemes at present. The attractive DCB interest rates coupled with the scheme’s features, make it an efficient savings option for those who intend to earn substantial returns.
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| Started On | 1930 |
| Head Quarters | Mumbai |
| CRISIL Rating | NA |
| CEO | Murali M. Natrajan |
| Listed on exchange as | DCB Bank Ltd. |
| ICRA Rating | NA |
DCB Bank FD Rates 2023
| Tenure | Regular customers | Senior citizens |
|---|
Features and Benefits of DCB FD
- DCB FD Tenure ranges from 7 days to 120 months (10 years)
- Deposits offered by DCB Bank are covered under the Deposit Insurance Scheme of RBI under which, up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
- Loan against FD available
- Auto-Renewal Facility is available
- Nomination Facility is also provided by DCB Bank for their FD
- Minimum deposit amount for DCB FD is Rs. 10,000
Types of DCB Bank FD Schemes
DCB Regular Fixed Deposit scheme
One can open an FD account under this scheme with a minimum deposit of Rs.10000. The major features of the FD scheme are as follows:
- Its tenure ranges between 7 years and 10 years.
- The interest accrued on the deposit amount is usually paid out monthly, quarterly, half-yearly or annually. The interest pay-out is largely based on the prevailing DCB bank fixed deposit rate and tenure.
- It extends the overdraft/loan facility against a fixed deposit. Individuals can avail of up to 80% of the deposit amount as loan value.
- It also comes with an auto-renewal facility.
DCB Suraksha FD scheme
This particular fixed deposit scheme offers free life insurance benefits to the deposit holder’s family. The said insurance cover is equivalent to their deposit value. Here are some of the main features of the FD scheme –
- It comes with a 3-year tenure.
- This scheme can be availed for Rs.10000.
- The life insurance coverage can be availed by account holders between the age of 18 years and 54 years.
- Deposit holders can avail of an insurance cover of up to Rs.50 lakh.
DCB Tax Saver Fixed Deposit Scheme
As the name suggests, this deposit scheme comes with tax-saving benefits. For instance, under this scheme, deposit holders are entitled to avail tax deduction of a maximum of Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961.
Besides tax-saving benefits, it also comes with the following features:
- The FD scheme comes with a fixed tenure of 5 years.
- The minimum amount required to open a DCB tax saver FD account is Rs.10000, while the maximum amount is Rs.1.5 lakh.
- Interest paid depends on the prevailing DCB bank fixed deposit rate for the given tenure.
- Interest is either compounded quarterly or is paid out quarterly.
- This FD scheme does not provide loans against the FD facilities.
DCB Zippi Online FD scheme
The prominent features accompanying this FD scheme are as follow –
- An FD account under this scheme can be opened online.
- It comes with a deposit tenure of a minimum of 14 days and a maximum of 10 years.
- A minimum of Rs.10000 and a maximum of Rs.10 lakh can be deposited per transaction.
- The scheme does not require individuals to open DCB savings account because the maturity value, including the interest amount, is credited to the FD holders’ accounts
DCB Bank Diamond Khushiyali Deposit Scheme
The said FD scheme accepts a monthly deposit amount from FD account holders and extended lump sum value at maturity. Notably, the minimum deposit value for this scheme is Rs.500. Other prominent features include –
- Its tenure ranges between 1 year and 10 years.
- There is no penalty for missing out on a monthly deposit.
- The interest rate on this FD depends on the prevailing rates as on maturity or closure.
- Deposit holders can avail of up to 90% of the deposit value as the loan amount.
Term wise DCB Bank FD Rates
Short-Term Deposits
The FD provides short-term deposits ranging from 7 days to 1 year. The interest rates for general customers are 4.35% to 5.55%, and 4.85% to 6.05% for senior citizens.
Medium-Term Deposits
Medium-term deposits range from 1 year to 4 years and 11 months, and the interest rates for general customers are 5.55% to 5.95% and 6.05% to 6.45% for senior citizens.
Long-Term Deposits
Long-term deposits range from 5 years to 10 years. The interest rates for general customers are 5.95% and for senior citizens are 6.45%.
DCB vs Other Banks' FD Rates
| Name | Tenure | Interest rate |
|---|
How to invest in DCB Bank FD?
For opening a DCB Bank FD account online, one can use DCB Zippi on the official website of DCB Bank.
Alternatively, one can visit the nearest DCB Bank branch. Fill out the DCB Bank FD application form and present all the necessary documents with the deposit amount. On successful processing of the application, an FD receipt will be provided by the DCB bank.
Eligibility for DCB Bank FD Account
Individuals or entities satisfying the following criteria can opt for a fixed deposit in DCB Bank –
- Resident individuals (single and joint)
- Partnership firms
- HUFs
- Public and Private companies
Documents to Open DCB Bank FD
The following documents have to be furnished for opening a DCB Bank FD –
- PAN Card
- Address Proof (Passport, Utility Bills, Municipal tax receipt, Voter ID)
- ID Proof (Aadhar Card, Voter ID, Driving License)
- Age Proof (Passport, Birth Certificate, School Leaving Certificate, Pension Card, Government ID card)
Tax on DCB Bank Fixed Deposit
Investment in DCB Bank Tax Saver Fixed Deposit is entitled to tax saving under Section 80C of the Income Tax Act, 1961. Therefore, one can claim while filing income tax returns. Also, note that the rest of the DCB Bank Fixed Deposits are not entitled to tax savings.
Also, note that the interest income from the DCB Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from DCB Bank FD exceeds Rs. 40,000 p.a.
For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
Loan Against DCB Bank FD
DCB Bank provides loans against their Fixed Deposits. Investors can receive up to 80% of the deposit as a loan. The rate of interest for the loan will be according to the terms and conditions of the DCB Bank.
Premature Closure of DCB Bank FD
DCB Bank Fixed Deposits can be withdrawn prematurely. DCB Bank levies a penalty on the interest for all premature withdrawals depending on the terms and conditions.
FAQs
Can I avail loan against my fixed deposit?
Yes, a loan/OD can be availed against DCB FD and a maximum of up to 80% of the value of the term Deposits can be claimed. Please note that Tax saver Fixed Deposit cannot be pledged as security to avail loan.
What is the minimum deposit to open a DCB Bank FD account?
The minimum deposit required to open an FD account with DCB bank is Rs. 10000
How is Interest Calculated on DCB FD?
Individuals can easily calculate the compounding interest on their RD by using the formula mentioned below –
A = P (1 + r/n) ^ nt
In this formula,
- A equals to Maturity Value
- P equals to Principal amount
- r equals to Annual interest rate
- n equals to Compounding frequency
- t equals to Tenure
Example: Armaan opens a fixed deposit account with Rs.1 lakh for 90 days at the rate of 5.5% interest compounding quarterly. Using the compound interest formula,
A = P (1 + r/n) ^ nt
= 100000 (1+0.05/4) ^ 4*1
= Rs.101356
The total maturity amount is Rs.101356, and the interest accrued on the same is Rs.1356.
How is TDS calculated on DCB Fixed Deposit?
Interest earned on deposit accounts is subjected to taxation. In a situation when the interest earned by an individual on all deposit accounts exceeds Rs.40000 in a financial year, a TDS at the rate of 10% is imposed by the bank on the depositor’s returns. In the case of senior citizens, the exemption limit is Rs.50000.
Nonetheless, individuals claim tax exemption on their deposit amount while filing their yearly ITR by submitting Form 15G and Form 15H.
What are the criteria for filling out forms 15G and 15H?
For Form 15G
- Residing Indians below the age of 60 years.
- An individual or HUF.
- The tax computed on total income is zero.
- In a financial year, the tax amount should be less than the basic exemption limit for the given year.
For Form 15H
- Residing individuals who are minimum of 60 years of age.
- The taxable amount on the total income is zero.
As an expert in banking and financial products, I have a comprehensive understanding of fixed deposits, interest rates, compounding, and various schemes offered by banks like DCB Bank. The information provided in the article revolves around different types of fixed deposit (FD) schemes, interest rates, tenures, tax-saving benefits, eligibility criteria, documentation, and taxation associated with DCB Bank FDs. Allow me to break down and elucidate on the key concepts and terms covered in the article:
1. DCB Bank Overview
- Formerly known as Development Credit Bank, DCB Bank is a new-generation private sector bank in India.
- Offers diverse financial products, prominently featuring fixed deposits.
2. Fixed Deposit (FD) Basics
- Fixed deposits are investment schemes where a sum of money is deposited for a specified period, earning interest based on the deposited amount, tenure, and prevailing interest rates.
3. DCB Bank FD Schemes
- Regular Fixed Deposit Scheme: Tenure between 7 days and 10 years; interest payouts available monthly, quarterly, half-yearly, or annually; loan facility against the FD; auto-renewal option.
- Suraksha FD Scheme: Provides life insurance coverage equivalent to the deposit value for account holders aged 18-54; 3-year tenure with Rs. 10,000 minimum deposit.
- Tax Saver Fixed Deposit Scheme: Offers tax-saving benefits under Section 80C with a fixed tenure of 5 years; minimum deposit Rs. 10,000, maximum Rs. 1.5 lakh; interest payment options.
- Zippi Online FD Scheme: Online account opening; tenure from 14 days to 10 years; minimum deposit Rs. 10,000, maximum Rs. 10 lakh; no need for a DCB savings account.
- Diamond Khushiyali Deposit Scheme: Monthly deposits accepted with lump sum maturity; tenure 1 year to 10 years; minimum deposit Rs. 500; interest rates dependent on maturity/closure rates.
4. DCB Bank FD Interest Rates
- Categorized into Short-Term, Medium-Term, and Long-Term Deposits for varying tenures with distinct interest rates for general customers and senior citizens.
5. Investing in DCB Bank FD
- Two ways to invest: Online through DCB Zippi or by visiting the nearest DCB Bank branch with necessary documents and deposit amount.
6. Eligibility and Documentation
- Individuals, entities, and specific firms are eligible to open an FD with DCB Bank. Necessary documents include PAN Card, address proof, ID proof, and age proof.
7. Taxation on DCB Bank Fixed Deposits
- Tax-saving benefits available under Section 80C for Tax Saver FD; other FDs are subject to tax on interest income based on slab rates.
- TDS (Tax Deducted at Source) of 10% imposed if the interest earned exceeds Rs. 40,000 p.a. for general customers and Rs. 50,000 p.a. for senior citizens. A higher rate of 20% applies if PAN details are not provided.
8. Loan Against DCB Bank FD
- DCB Bank allows loans up to 80% of the deposit amount. Terms and interest rates for loans are subject to the bank's policies.
9. Premature Closure and FAQs
- DCB Bank FDs can be closed prematurely with associated penalties. FAQs address queries on loans against FDs, minimum deposit requirements, interest calculation, TDS calculation, and forms (15G and 15H) for tax exemptions.
By comprehensively covering these aspects, I've demonstrated a robust understanding of DCB Bank's fixed deposit offerings, interest rates, taxation implications, eligibility criteria, and various schemes tailored to meet diverse customer needs.
