DCB Bank Limited (formerly, Development Credit Bank Limited) is one of India’s emerging private sector banks. It started as a Credit Society in the 1930s and has now developed into a full-fledged bank. It offers various FD schemes for its investors. Their fixed deposits are quite flexible with their interest payments. The bank also offers premature withdrawal facility and loan against their fixed deposits. In this article, we have covered DCB Bank FD and its interest rates in detail.
DCB Bank FD interest rates 2020
The following table shows the Bank Fixed Deposit interest rates
DCB Bank fixed deposit interest rates range between 4.75%-6.95% for regular citizens. The DCB fixed deposit rates for senior citizens is in the range 5.25% -7.45%. The tenure varies between 7 days and 10 years. DCB FD rates are higher than their saving account rates. Moreover, the bank offers a higher rate of interest for senior citizens on their FD investments. They get an additional 0.5% interest rate on their DCB FDs. Investors can opt for receiving interest regularly through monthly, quarterly or annual intervals. Moreover, the interest is compounded quarterly.
The highest fixed deposit interest rate for DCB Bank is 6.95% for a regular investor for the tenure of 5-10 years. For the same tenure, the senior citizen FD rate of interest is 7.45%. Returns from DCB fixed deposits can be calculated using the DCB Bank fixed deposit calculator.
|Tenure||Regular FD Interest Rates||Senior Citizen FD Interest Rates|
|7 days to 14 days||4.75%||5.25%|
|15 days to 45 days||5.05%||5.55%|
|46 days to 90 days||5.25%||5.75%|
|91 days to 179 days||5.75%||6.25%|
|701 days to 35 months 29 days||6.65%||7.15%|
|6 months to 364 days||6.35%||6.85%|
|12 months 1 day to 14 months 29 days||6.50%||7.00%|
|15 months to 17 months 29 days||6.55%||7.05%|
|18 months 1 day to 699 days||6.65%||7.15%|
|36 months 1 day to 60 months||6.95%||7.45%|
|60 months 1 day to 120 months||6.95%||7.45%|
Key Features of DCB Bank Fixed Deposit
Following are the key features of DCB Bank fixed deposits:
The DCB Bank fixed deposit tenure ranges between 7 days to 10 years. Once invested, one cannot change the tenure of DCB Bank FD investment. However, investors can always opt for premature withdrawal. And they can close their existing DCB Bank FD and start a new FD with the desired tenure.
Minimum and Maximum Deposit Amount
The minimum investment for DCB fixed deposits is INR 10,000. For tax saving deposits, the minimum investment amount is INR 100. There is no limit on the maximum amount of investment except for tax saving fixed deposits, which is INR 1.5 lakhs per annum.
DCB Bank FD Rates
DCB bank fixed deposit rates are in the range of 4.75% p.a to 6.95% p.a.
Preferential Interest Rates
DCB Bank offers a preferential interest rates for senior citizens. Senior citizens qualify for an additional 0.5% interest rate on their FD investments.
To be able to open a fixed deposit account with DCB Bank, one needs to be eligible. Following are the eligible persons and entities.
- Resident individuals (single and joint)
- Partnership firms
- Public and Private companies
To open an FD account with DCB Bank, one would need the following documents.
- PAN Card
- ID Proof (Aadhar Card, Driving License, Voter ID)
- Address Proof (Utility Bills, Passport, Voter ID, Municipal tax receipt)
- Age Proof (Passport, Pension Card, Birth Certificate, Government ID card, School Leaving Certificate)
It is not possible to deposit any additional amount in an existing DCB FD. However, one can always invest in a fresh DCB FD with the additional amount.
Tax and TDS
Investment in DCB Tax Saver Fixed Deposit qualifies for tax saving under Section 80C of the Income Tax Act, 1961. One can claim the tax benefits while filing income tax returns. All other DCB fixed deposits do not qualify for tax saving.
The interest that one earns on their DCB Bank FD investments is taxable as per the investor’s income tax slab rates. Furthermore, DCB Bank deducts TDS of 10% (20% if PAN is not available) if income exceeds INR 40,000 (INR 50,000 for senior citizens).
To estimate if the interest income from DCB Bank FD is above or below the TDS threshold limit, one can use the DCB Bank fixed deposit calculator available online. Also, to estimate their tax liability one can use an Income Tax Calculator. Scripbox’s Income Tax Calculator is available online and is free to use. It helps in estimating one’s tax liability.
Under the Deposit Insurance Scheme of RBI, DICGC insures all DCB deposits up to INR 5,00,000.
DCB Bank allows premature withdrawal of fixed deposits. However, they will charge a penalty for the same, which is subject to change from time to time. The penalty shall be in the form of interest. The same is deducted from the contracted FD interest rate.
Depositors can nominate beneficiaries for their DCB fixed deposits.
DCB offers auto-renewal facilities to depositors for their fixed deposits.
Opening and managing DCB FD investments is easy and convenient through their online portal.
Loan against FD and Overdraft
DCB Bank allows investors to take a loan against their FD investments. This will help them in meeting short term liquidity requirements without having to break their fixed deposits. Moreover, they do not have to go through the entire stress of the loan application process. The bank gives up to 80% of the deposit amount as loan.
A PAN card is mandatory to open a DCB Bank FD account. In case one doesn’t submit their PAN details, the bank will deduct TDS at 20% instead of 10%. Moreover, DCB Bank will not issue any TDS certificate. Also, all exemption certificates are invalid.
Requirement of savings account
Individuals need not have a DCB Bank account to open a fixed deposit account.
Types of Fixed Deposit Schemes offered by DCB
- Fixed Deposit
- Suraksha Fixed Deposit
- Tax Saver Fixed Deposit
- Diamond Khushiyali Deposit
- Zippi Online Fixed Deposit
Types of Fixed Deposit Schemes: In Detail
DCB Fixed Deposit
The scheme offers an attractive interest rate with flexible payment options.
- Tenure: 7 days to 10 years
- Minimum Depsoit Amount: INR 10,000
- Loan or Overdraft Facility: Available, depositors can avail a loan up to 80% of the deposit amount.
- Auto-renewal facility: Available
DCB Suraksha Fixed Deposit
The scheme helps depositors for a better future. It offers attractive returns as well as free life insurance for the family members of the depositor. The scheme also offers a maximum life insurance cover of INR 50,00,000. The insurance cover is valid from the age of 18 years, and till the account holder attains the age of 55 years.
Tenure: 36 months
DCB Tax Saver Fixed Deposit
The tax saver FD offers twin benefits. It offers attractive interest rates and also tax benefits to the depositor. Under Section 80C of the Income Tax Act, the depositors can claim tax benefit on deposits up to INR 1,50,000 per annum.
- Lock-in period: 5 years
- Minimum Amount: INR 10,000
- Maximum Amount: INR 1,50,000 per financial year
- Loan Facility: Not available
- Premature Withdrawal: Not allowed
DCB Diamond Khushiyali Deposit
The scheme offers long term benefits by securing monthly deposits and turning them into huge returns upon maturity. It helps the depositors to be ready for planned expenses in the future. The scheme offers an assured amount upon maturity. It also offers flexibility in payments and does not charge for missing any instalment.
Minimum Deposit Amount: INR 500 per month and in multiples of Re 1 thereafter
DCB Zippi Online Fixed Deposit
Zippi Online fixed deposit scheme is a convenient way of opening an account and also offers superior returns. One can easily open the account from home with just an Aadhaar card and pan card. Furthermore, the scheme offers the benefit of quarterly compounding by reinvesting the interest and principal. Also, depositors can choose their interest payout frequency, monthly or quarterly.
- Tenure: 30 days to 5 years
- Minimum Deposit Amount: INR 10,000 per transaction
- Maximum Deposit Amount: INR 5,00,000 per transaction
- Auto-Renewal: Available