DCB Bank FD Interest Rate
DCB Bank offers a wide variety of term deposits at attractive interest rates. The scheme tenures usually range from 7 days to 10 years and have a minimum deposit requirement of ₹10,000. You can opt for annual, half-yearly, quarterly or monthly payouts based on your preference. Additionally, senior citizens get 0.5% extra on the applicable DCB FD interest rates.
Interest Rates Chart 2023
| Tenure | For General Citizens (p.a.) | For Senior Citizens (p.a) |
|---|---|---|
| 7 days - 14 days | 3.75% | 4.25% |
| 15 days - 45 days | 3.75% | 4.25% |
| 46 days - 90 days | 4% | 4.5% |
| 91 days - less than 6 months | 4.75% | 5.25% |
| 6 months - less than a year | 6.25% | 6.75% |
| 1 year | 7.25% | 7.75% |
| 1 year 1 day - less than 15 months | 7.25% | 7.75% |
| 1 year 3 months - less than 1 year 6 months | 7.5% | 8% |
| 18 months - less than 700 days | 7.75% | 8.25% |
| 700 days to 24 months | 8% | 8.5% |
| Note: All interest rates are updated as of 18th May 2023 | ||
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All you need to know about DCB Bank FD Interest Rate
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About DCB Bank
Founded in 1930, Development Credit Bank (DCB) is a new-age private sector banking and financial services provider. It has around 418 branches all over India as of December 2022. This bank deals in business segments like retail, public sector, NBFCs, micro-SMEs, agriculture and more.
Types of DCB Fixed Deposits
Here are the types of fixed deposits which DCB offers:
DCB Fixed Deposit
This is the standard fixed deposit scheme that DCB offers. It has an auto-renewal feature that lets you keep your funds invested without worrying about the due date.
- Minimum investment: ₹10,000
- Maximum investment: No Upper Limit
- Scheme tenure: 7 days to 10 years
- Senior citizens are offered additional interest of 0.5% p.a.
- Reinvesting the principal and interest
- Choose to take interest payout on a monthly/quarterly/half yearly/yearly basis.
- You can avail loan/overdraft against fixed deposits with a maximum drawing power of up to 80% of the value of the fixed deposits.
DCB Suraksha Fixed Deposit
Apart from providing attractive returns, this FD facilitates a life insurance cover worth ₹10 lakhs. Along with you, the cover would also be applicable for your family members, and a medical test is not necessary for availing the benefits. Furthermore, both residents, as well as non-residents can apply for this scheme.
- Minimum investment: ₹10,000
- Maximum investment: No Upper Limit
- Scheme tenure: 3 years
- The minimum entry age is 18, and the maximum is 54. Customers who have completed 55 years or more before the deposit opening are not eligible to open this deposit.
- Minimum documentation is required.
- Premature withdrawal of deposit is permitted.
DCB Tax Saver Fixed Deposit
You can avail tax deduction of up to ₹1.5 lakhs a year under Section 80C of the Income Tax Act of 1961.
- Minimum investment: ₹10,000
- Maximum investment: ₹1.5 lakh per annum
- Scheme tenure: 5 years
- Opt for either quarterly compounding or quarterly interest payout
- No premature encashment of tax saver fixed deposit as per current tax laws
- Tax Saver Fixed Deposit cannot be pledged as security to avail loan
DCB Zippi Online Fixed Deposit
You can apply for this term deposit scheme online by simply providing your PAN and Aadhaar details. Moreover, you can receive the interest and the maturity amount in a savings account with any bank. There is no need for an account at DCB to avail this scheme.
- Minimum investment: ₹10,000
- Maximum investment: ₹50 lakhs
- Scheme tenure: 30 days to 5 years
- Once your KYC is completed through video KYC (or face-to-face meeting with an official of DCB Bank), you can open additional deposits for tenures between 14 days to 10 years.
- Minors cannot open a DCB Zippi Online Fixed Deposit.
- DCB Zippi Online Fixed Deposit can be opened only by Resident Indians and not NRIs.
- Senior citizens aged 60 years or above, as of the date of booking of the deposit, will be eligible to get 0.5% over and above the retail fixed deposit interest rate.
DCB Health Plus Fixed Deposit
The DCB Health Plus Fixed Deposit scheme offers medical and emergency services and interest income. They are facilitated under the ICICI Lombard Group Take Care Insurance Plan. Moreover, as a primary account holder, you can invest in up to 4 such FDs at a time.
- Minimum investment: ₹10,000
- Maximum Investment: No Upper Limit
- Scheme Tenure: 700 days
- The eligible entry age is 18 to a maximum of 70 years.
- Premature withdrawal of the deposit is available in an emergency.
- A nomination facility is also available.
DCB NRE Term Deposit Schemes
These term deposit schemes are useful for NRIs who want to invest their foreign currency earnings in a fixed deposit scheme and convert them into Indian rupees.
- Minimum investment: ₹10,000
- Maximum investment: No upper limit.
- Bank treasury approval is required for interest rate quotes and booking a single deposit of ₹2 crores and above.
- Scheme Tenure: 1 year to 10 years
- There is no additional benefit to NR senior citizen
DCB NRO Term Deposit Schemes
Non-Resident Ordinary (NRO) FDs are useful when non-residents want to deposit their earnings in Indian currency.
- Minimum investment: ₹10,000
- Maximum investment: No upper limit.
- Bank treasury approval is required for interest rate quotes and booking a single deposit of ₹2 crores and above.
- Scheme tenure: 7 days to 10 years
- There is no additional benefit to NR senior citizen
DCB FCNR Term Deposit Schemes
Foreign Currency Non-Resident (FCNR) term deposit schemes enable NRIs and Persons of Indian Origin (PIOs) to invest their savings in foreign currency and earn interest.
- Minimum investment: ₹10,000
- Maximum investment: No upper limit.
- Scheme tenure: 1 year to 5 years
- There is no additional benefit to NR senior citizen
- Any deposit for USD, GBP, EUR, CAD or AUD equivalent to or more than ₹2 crores will be considered a bulk deposit.
- No interest will be paid on FCNR deposits prematurely withdrawn before the completion of one year.
- FCNR Deposit interest rates are compounded half-yearly.
Pros of investing in DCB Bank Fixed Deposit
- Period: The FD with DCB Bank ranges from 7 days to 10 years.
- Convenient: Open hassle-free FD using online banking in a few minutes
- DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs.
- Minimum amount: Fixed deposits with DCB Bank can be opened with a minimum investment of ₹10,000
- Preference to senior citizens: Additional 0.5% p.a. for senior citizens. This does not apply to deposits for NRIs.
- Nomination facility: Depositors can nominate beneficiaries for their investments in DCB Bank FDs.
Cons of investing in DCB Bank Fixed Deposit
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.
DCB Bank FD Eligibility Criteria
The eligibility criteria for opening an FD at DCB are as follows:
- Nationality: Indian or NRI
- Age: 18 years and above
- Applicant Type: Individual, Hindu Undivided Family (HUF), partnership firm, sole proprietorship, etc.
Documents Required for DCB Bank FD Account
These are the documents required for opening a DCB bank FD:
- Identity proof: Aadhaar card, Voter ID card, PAN card, Government ID card, senior citizen ID card or driving licence.
- Address proof: Passport, Voter ID card, Aadhaar card, electricity bill, telephone bill, or bank statement with a cheque.
- Recent passport-sized photographs.
How to Open an FD with DCB Bank?
Follow the steps given below to open an FD at DCB Bank:
Step 1: Visit the nearest DCB bank branch and fill up the FD account opening form.
Step 2: Enter all the necessary information, like tenure and deposit amount.
Step 3: Attach all the necessary documents and a cheque for funding your deposit.
Step 4: Collect the Fixed Deposit Receipt (FDR).
DCB Bank Fixed Deposit Premature Withdrawal
The penalties applicable for withdrawing your term deposit prematurely at DCB Bank are as follows:
| Deposit Size | Within 7 to 13 days | Within 14 to 29 days | 30 days and above |
| Less than ₹2 crore | No interest | 0.50% less than the applicable interest rate | 0.50% less than the applicable DCB bank FD rates |
| ₹2 crore and above | No interest | No interest | 2% less than the applicable interest rate |
Tax implications on DCB Bank FD
According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
- Taxpayers can invest in FD either through public or private sector banks.
- Individuals and HUFs can avail tax deductions by investing in tax savings FDs.
- Bank's five-year tax saving FD offers exemptions under Section 80C.
- Investors cannot get loans against these FDs.
- In the case of joint holders, only the first holder can get tax benefits.
How to claim tax benefits?
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
- TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.
FAQs
When is the right time to invest in a term deposit?
The right time to invest in a fixed deposit depends on the investor's financial goals, risk appetite, and prevailing interest rates. Generally, it is advisable to invest in fixed deposits when the interest rates are high and are expected to remain stable for the investment period.
Why should I invest in FDs when other investment instruments are offering better returns?
FDs provide a guaranteed return on investment and are relatively low-risk compared to other investment instruments.
Is the ₹5 lakhs DICGC insurance cover applicable on DCB Bank FD?
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to DCB Bank FD.
How to break FD in DCB?
To break a term deposit in DCB, visit the nearest branch and fill out the FD Account Closure Form. Provide the required KYC documents and submit the FD certificate. You can also break your FD using the DCB Bank Mobile Banking app.
What medical benefits come under the DCB Health Plus Fixed Deposit scheme?
The medical benefits under the DCB Health Plus Fixed Deposit scheme apply to over-the-phone and face-to-face appointments with doctors, coverage for prescribed medicines and emergency ambulance services. The number of times you can avail these benefits during the maturity period depends upon the amount you invest.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.