Dhanlaxmi Bank FD Interest Rate
Updated 06 Dec 2023
Dhanlaxmi Bank Fixed Deposit Interest RatesNote: All interest rates are updated as of 30 Nov 2023
|Tenure||For General Citizen (p.a)||For Senior Citizen (p.a)|
|7 days to 14 days||5.75 %||6.25 %|
|15 days to 45 days||5.75 %||6.25 %|
|46 days to 60 days||6.5 %||7 %|
|61 days to 90 days||6.5 %||7 %|
|91 days to 179 days||6.5 %||7 %|
|180 days - less than one year||6.5 %||7 %|
|1 Year and above up to & inclusive of 2 years||6.75 %||7.25 %|
|7.25 %||7.75 %|
|Above 2 years up to & inclusive of 3 years||6.5 %||7 %|
|Above 3 years up to & inclusive of 5 years||6.6 %||7.1 %|
|Above 5 years up to & inclusive of 10 years||6.6 %||7.1 %|
Types of Dhanlaxmi Bank Fixed Deposit
Dhanam Cumulative Deposit Certificate (DCDC)
- The minimum deposit is ₹100 and then in the multiples of ₹100 thereof.
- The tenure of investment is from 6 months to 60 months. Subsequent multiples at 3-month intervals are permitted.
- The interest rate is paid quarterly, and cumulative interest and the principal amount are paid at maturity.
- A loan facility is available for up to 90% of the FD amount.
- Senior citizens will get an additional 0.5% interest rate.
Dhanam Tax Advantage Deposit
- You can deposit a minimum of ₹100 and a maximum of ₹1.5 lakhs in a given financial year.
- In a given financial year, a tax exemption of ₹1.5 lakhs under section 80C of the Income Tax Act is applicable.
- A nomination facility is available.
- The minimum investment tenure is 5 years, and the maximum is 10 years.
- A PAN card is mandatory for investing in this scheme.
- Premature withdrawal is not allowed for up to 5 years.
- It does not facilitate loans against the invested amount.
- There is no additional interest rate for Senior citizens.
- In the case of joint holders, the deduction under 80C is available only to the first holder.
- In the case of the Hindu Undivided Family (HUF), Karta will get the deduction.
- Joint accounts can be opened by adults as well as minors and their guardians.
Senior Citizens Deposit
- This scheme is for resident Indians who are aged 60 years and above.
- They get an additional 0.5% p.a. interest rate for term deposits for periods starting from 180 days and above but excluding the 500 days product.
- The additional rate of interest offered for deposits of Senior Citizens applies only to Resident Indians.
- Issue of demand draft of ₹5,000 once a month.
- At the par collection of 1 instrument for a value up to ₹5,000 once a month.
Pros of investing in Dhanlaxmi Bank Fixed Deposit
- Period: The FD with Dhanlaxmi Bank ranges from 6 months 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 Dhanlaxmi Bank can be opened with an investment as low as ₹100
- Preference to senior citizens: Earn an additional 0.5% p.a. on Senior Citizen Term Deposit
- Nomination facility: Depositors can nominate beneficiaries for their investments in Dhanlaxmi Bank FDs.
Cons of investing in Dhanlaxmi 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.
Eligibility Criteria to Open a Fixed Deposit with Dhanlaxmi Bank
To invest in the Dhanlaxmi Bank following are eligible to invest in the FD scheme:
- Partnership firm
- Clubs and associations
- Corporate bodies
Documents Required to Open a Standard Chartered Fixed Deposit
The following documents are required to invest in the Fixed deposit scheme of Dhanlaxmi Bank.
Documents accepted as ID and Address proof:
- Driving licence
- Aadhar card
- PAN card
- Form 60/61 (In case PAN card is not available)
- Voters' Identity cards issued by the Election Commission of India.
How To Open A FD Account with Dhanlaxmi Bank?
You can open fixed deposit accounts in both online and offline methods:
Step 1: Log in to the net banking of Dhanlaxmi Bank
Step 2: Select the investment in Fixed Deposit
Step 3: Select the type of scheme in which a customer wants to invest
Step 4: Follow the online instructions and apply for a term deposit
Step 1: Visit the bank branch
Step 2: Take the FD application form
Step 3: Fill in the required details and submit the necessary documents
Step 4: Submit the form to the branch
Dhanlaxmi Bank Fixed Deposit Premature Withdrawal
There is a penalty of 1% on premature withdrawal of the amount ₹5 lakhs and above and 0.5% for the amount less than ₹5 lakhs.
Tax implications on Dhanlaxmi 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.
How is a tax-saver FD different from a regular FD?
A tax-saving FD has a lock-in period of 5 years. No premature withdrawals, overdrafts, or loan facilities are not available under a tax-saving FD. Whereas one can have a regular FD for any tenure as per an individual's choice, and they are eligible for premature withdrawals too.
Can I avail a loan facility against my fixed deposit?
Dhanlaxmi Bank allows a loan facility in its Dhanam DCDC (Cumulative Deposit Certificate) scheme. In this scheme, depositors can get a loan or overdraft facility up to 90% of the FD amount.
Is the ₹5 lakhs DICGC insurance cover applicable on Dhanlaxmi Bank FD?
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover is applicable on Dhanlaxmi Bank FD.
Are there charges at the time of opening or maturity of the fixed deposit?
There are no charges at the time of opening or maturity of the fixed deposit. However, there is a penalty in case of premature withdrawal, and the bank may charge TDS (Tax Deducted at Source) at the rate of 10% if the amount of interest exceeds ₹40,000 (₹50,000 in the case of senior citizens).
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