Dhanlaxmi Bank offers higher fixed deposit interest rates than their savings bank account. Moreover, the interest rates range between 3.5% to 5.6% for regular citizens for a tenure of 7 days to 10 years. Also, senior citizens get an additional 0.5% on their Dhanlaxmi Bank FD investments. There is also a premature withdrawal facility and loans against Dhanlaxmi Bank term deposits. This article covers Dhanlaxmi Bank FDs and their interest rates in detail.
Dhanlaxmi Bank FD Interest Rates April 2021
The following table shows Dhanlaxmi Bank FD interest rates.
|Tenure||Regular FD Interest Rates||Senior Citizen FD Interest Rates|
|7 days to 45 days||3.50%||4.00%|
|46 days to 90 days||4.00%||4.50%|
|91 days to 179 days||4.25%||4.75%|
|180 days to 364 days||4.50%||5.00%|
|1 year to 2 years||5.25%||5.75%|
|2 years 1 day to 3 years||5.40%||5.90%|
|3 years 1 day to 5 years||5.50%||6.00%|
|5 years 1 day to 10 years||5.60%||6.10%|
Features of Dhanlaxmi Bank Fixed Deposit
Dhanlaxmi FD schemes offer better returns than a savings bank account. Following are the key features of Dhanlaxmi Bank fixed deposits:
1. Flexible Tenure
The Dhanlaxmi FD tenure ranges between 7 days to 10 years. Once invested, one cannot change the tenure of Dhanlaxmi FD investment. However, one can opt for premature withdrawal, and they can close the existing Dhanlaxmi Bank fixed deposit and start a new FD with the desired tenure.
2. The Minimum and Maximum Amount of Deposit
The minimum amount of deposit for Dhanlaxmi Bank FDs is INR 100. However, there is no limit on the maximum investment amount for Dhanlaxmi FDs.
3. Preferential Interest Rates
Dhanlaxmi Bank offers preferential interest rates for senior citizen depositors. Also, the Dhanlaxmi fixed deposit interest rates for senior citizens range between 4% to 6.10%. Moreover, they get an additional interest of 0.5% per annum.
4. Additional Payments
It is not possible to deposit any additional amount in an existing Dhanlaxmi Bank fixed deposit. However, one can always invest in a fresh Dhanlaxmi fixed deposit with an additional amount.
5. Tax and TDS
Investment in Dhanlaxmi Bank Tax Advantage Fixed Deposit qualifies for tax saving under Section 80C of the Income Tax Act, 1961. Other than this deposit, no other Dhanlaxmi Bank FD qualifies for tax saving. Moreover, the interest that one earns on their Dhanlaxmi Bank fixed deposit investments is taxable as per the depositor’s income tax slab rates. Furthermore, Dhanlaxmi bank deducts a TDS of 10% in case the interest income exceeds INR 40,0000 (INR 50,000 for senior citizen investors). Also, the TDS rate will be 20% of the PAN Card details aren’t submitted to Dhanlaxmi Bank.
To determine if the interest income from a Dhanlaxmi Bank term deposit is above or below the TDS threshold limit, one can use the Dhanlaxmi bank fixed deposit calculator available online. Also, one can determine their tax liability using the Income Tax Calculator. Scripbox’s Income Tax Calculator is available online. It also helps in estimating tax liability from Dhanlaxmi FD investment for free.
Under the Deposit Insurance Scheme of RBI, DICGC insures all Dhanlaxmi Bank fixed deposits up to INR 5,00,000.
7. Premature withdrawal
Dhanlaxmi Bank allows premature withdrawal of fixed deposits. However, these withdrawals attract a penalty of 1% on the contracted interest rate if the deposits are above INR 5 lakhs. Also, if the deposits are below INR 5 lakhs, the penalty is 0.5% on the contracted interest rate.
8. Nomination Facility
Depositors can nominate beneficiaries for their Dhanlaxmi Bank term deposits.
Dhanlaxmi Bank provides an auto-renewal facility for deposits.
Opening and managing Dhanlaxmi Bank fixed deposit investments is easy and convenient through their online portal.
11. Loan against FD and Overdraft
Dhanlaxmi Bank investors can take a loan against their term deposits. This also helps them in meeting their liquidity requirements without breaking their deposit. Moreover, investors can get a loan of up to 90% against their Dhanlaxmi Bank.
Investors can take loans such as business loan, personal loan, student loan, loan against property (home loan), etc., against Dhanlaxmi Bank FD. One can also estimate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a personal loan EMI calculator. It also works as a house loan EMI calculator and car loan EMI calculator. Moreover, the investor can use the EMI calculator in multiple scenarios to compare the results. They have to change the input variables like personal loan interest rate. They can also change the house loan interest rate and car loan interest rate.
A PAN card is mandatory to open a Dhanlaxmi Bank FD account. There are few implications for not disclosing PAN details to Dhanlaxmi Bank. As per the regulations of section 206AA, the applicable TDS rate for non-disclosure of PAN will be 20% instead of the usual 10%. The Dhanlaxmi Bank will not issue any TDS certificate. Furthermore, all the exemption certificates will be invalid, for example, Form 15G and Form 15H.
Dhanlaxmi Bank Fixed Deposit Schemes
1. Dhanam Abhivridhi
The Dhanam Abhivridhi scheme doubles the deposit amount within a specific time period.
- Minimum Deposit Amount: INR 100
- Maximum Deposit Amount: No Limit
- Fixed Deposit rates: Depend on the deposit rates and change from time to time. The bank provides preferential interest for senior citizens.
- Interest: Compounded quarterly
- Interest payout: At the time of maturity
- Loan/ overdraft facility: Available
- Nomination Facility: Available
- Premature withdrawals: Allowed without any charges
- TDS: Applicable
2. Surabhi Deposit
The deposit scheme helps in minimizing the loss of interest on premature closures. The initial investments are high and also allows higher deposits to the existing term deposit. Depositors can choose between a current account or savings account to link their fixed deposits. Multiple deposits can be linked to this account.
- Tenure: 180 days and above
- Minimum Balance: INR 10,000, and in case of deficit, the linked FD is broken partially to minimize the interest loss.
- Automatic Renewal: Available
3. Sri Dhana Chakra Deposit
The Sri Dhana Chakra scheme allows deposits for any period of time without any upper limit. Furthermore, the initial investment is higher for this scheme.
- Minimum Deposit Period: 15 days
- Minimum Deposit Amount: INR 5,000
- Automatic Renewal: Available
4. Dhanam Cumulative Deposit Certificate (DCDC)
The quarterly interest is added to the principal amount, and therefore on maturity, the interest amount, as well as the principal amount, is paid.
- Tenure: 6 months to 60 months, further investments at 3-month intervals are permitted.
- Minimum Amount: INR 100 and in multiples of it thereafter
- Loan Facility: Available on 90% of the outstanding balance.
5. Tax Advantage
Deposits in the Tax Advantage scheme qualify for tax exemption under Section 80C of the Income Tax Act. The exemption is on deposits worth INR 1,50,000 per annum.
- Tenure: 5 years and 10 years, with a lock-in period of 5 years.
- Minimum Amount: INR 100
- Maximum Amount: INR 1.5 lakhs per annum
- Nomination facility: available
- PAN Card: Required while opening the account
- Premature withdrawals: Not allowed up to 5 years
- Loan facility: Not available
6. Senior Citizen’s Deposit
The scheme aims to provide senior citizens with extra protection through additional fixed deposit rates. Senior citizen deposits are eligible for an additional interest of 0.50%.
- Tenure: 180 days to 500 days
- Demand Draft: Depositors can issue a demand draft up to INR 5,000 once a month.
Dhanlaxmi Bank FD Account Requirement
For opening a fixed deposit account with Dhanlaxmi Bank, one has to be eligible. Following are the individuals that are eligible to invest in Dhanlaxmi Bank FDs.
- Resident individuals
- Nonresident individuals
- Corporate bodies
- Individuals need to have Dhanlaxmi bank savings accounts to open a fixed deposit account.
For opening a fixed deposit account with Dhanlaxmi Bank, one needs the following documents.
- A fixed deposit application form duly filled and signed
- Passport size photographs
- PAN Card
- ID proof (PAN Card, Passport, Aadhar Card, Voter ID, and Driving License)
- Address proof (Aadhar Card, Utility bills, Passport, and Bank Statement with Cheque)
- Age proof (Aadhar Card, Service Discharge Certificate, Birth certificate, PAN Card, and Voter ID)
Frequently Asked Questions
What is the highest fd rates for Dhanlaxmi Bank?
Dhanlaxmi Bank FD rates range between 3.5% and 5.6% for regular citizens. And, between 4%-6.10% for senior citizens for a tenure of 7 days to 10 years. The Dhanlaxmi Bank FD rates are higher than their savings account. Moreover, senior citizens get a higher rate of interest p.a on their Dhanlaxmi Bank term deposits. Also, the interest payments will be made at the time of maturity, and the interest will be compounded quarterly.
The highest term deposit rate for Dhanlaxmi Bank is 5.6% for a regular investor for the tenure of 5-10 years and above. Also, for the same tenure, the highest senior citizen FD rate is 6.1%. Moreover, returns from Dhanlaxmi Bank fixed deposits can be calculated by using a FD calculator.
Does the Dhanlaxmi bank offer Recurring Deposits?
Yes, Dhanlaxmi Bank offers a recurring deposit scheme. The Dhanlaxmi RD scheme allows small investments with recurring additions on a monthly basis for a predetermined period. The interest accrued gets added to the principal, and the cumulative sum is paid on maturity.