| Started On | 1930 |
| Head Quarters | Mumbai |
| CRISIL Rating | NA |
| CEO | Murali M. Natrajan |
| Listed on exchange as | DCB Bank Ltd. |
| ICRA Rating | NA |
| Tenure | Regular customers | Senior citizens |
|---|
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:
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 –
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 prominent features accompanying this FD scheme are as follow –
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 –
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 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 range from 5 years to 10 years. The interest rates for general customers are 5.95% and for senior citizens are 6.45%.
| Name | Tenure | Interest rate |
|---|
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.
Individuals or entities satisfying the following criteria can opt for a fixed deposit in DCB Bank –
The following documents have to be furnished for opening a DCB Bank FD –
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%.
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.
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.
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,
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
For Form 15H