Dewan Housing Finance Corporation or DHFL was founded in 1984 to allow middle and low-income households in India access to economical housing. From there onwards, it expanded its operations to offer various financial products to investors, including a lucrative fixed deposit scheme.

A fixed deposit is one of the most preferred traditional investment options, which helps individuals to generate a steady flow of returns on their savings. FD schemes offer depositors a higher rate of interest than a regular savings account. In line with this, the DHFL FD rates are also high and enable deposit holders to grow their savings through their chosen tenure.

Factors that Influence the DHFL FD Interest Rates 

Before learning more about the prevailing DHFL FD rates, individuals must note that several factors tend to influence the same. A few of such factors include –

  • Age of the depositor: Senior citizens are entitled to avail an additional 0.25% interest on their deposit value.
  • Deposit amount: A higher deposit amount attracts a higher rate of interest.
  • Tenure: A fixed deposit plan held for a longer period, fetches a higher rate of interest.
  • Compounding Frequency: An individual can avail higher returns from his/her FD if the compounding frequency for the interest is higher.
  • RBI policies: Changes in RBI’s policies like slashing prevailing deposit rates may tend to influence the rate of interest of fixed deposits.

Other than these, factors like recession, inflation, economic conditions, credit demand and liquidity of the bank tend to influence the rate of interest on FD significantly.

DHFL FD Interest Rates

(Last updated 12th Jan 2021)

The table below illustrates the DHFL FD interest rates for 2021.

Deposit Tenure DHFL Fixed Deposit Rates per annum DHFL Fixed Deposit Rates for Senior Citizen per annum
Up to 365 days 7% 7.95%
366 days to 425 days 7.75% 8.00%
426 days to 2 years 7.80% 8.05%
2 years and a day to 3 years 7.85% 8.10%
3 years and a day to 40 months 7.90% 8.15%
4 years – 10 years 8.00% 8.25%

It must be noted that the above mentioned cumulative DHFL FD rates apply to fixed deposit amounts below Rs.1 crore. Moreover, the DHFL fixed deposit interest rates are compounded every 6 months.

DHFL FD Non-Cumulative Interest Rates 

The table below illustrates the DHFL FD interest rates for 2021.

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Deposit Tenure DHFL Fixed Deposit Rates (half-yearly) DHFL Fixed Deposit Rates (half-yearly)
Up to 365 days 7.50% 7.75%
366 days to 425 days 7.55% 7.80%
466 days to 2 years 7.60% 7.85%
2 year and a day to 3 years 7.65% 7.90%
3 years and a day to 40 months 7.70% 7.95%
4 years – 10 years 7.80% 8.05%

Notably, DHFL FD rates are subjected to change. Consequently, interested individuals should be in touch with the representative of the financial institution to learn more about the current rates for a particular tenure.

DHFL Fixed Deposit Eligibility 

Individuals belonging to any of these categories are deemed eligible to start a DHFL FD account –

  • Resident Indian
  • HUFs
  • NRIs
  • Firms
  • Minors

One must make it a point to find out the required set of documents to back their eligibility criteria to start an FD account.

Types of DHFL Fixed Deposit Scheme

Here are the most prominent FD schemes extended by DHFL.

i. Aashray Deposit Plus Individuals

This scheme offers an attractive rate of interest and helps deposit holders to generate substantial earnings. The following are some of its most prominent features –

    • Nomination facility is allowed.
    • Provides up to 75% of the deposit amount as loan.
    • Returns earned on the deposit amount are safe and secured.
    • ECS facility is allowed.
    • Provides an additional 0.25% interest to senior citizens.

ii. Aashray Deposit Plus for Trusts and Institutions

This deposit is considered most suitable for Trusts, Societies, Clubs and Associations and provides a high rate of interest. This fixed deposit plan extends features which are similar to the scheme Aashray Deposit Plus Individuals.

iii. Aashray Deposit Plus

This particular fixed deposit plan comes with a maximum tenure of 107 months and facilitates two-fold growth to the deposit amount.

    • It comes with a nomination facility.
    • It offers up to 75% of the deposit money as loan value.
    • Returns generated are safe and secured.
    • ECS facility is permitted.
    • Senior citizens receive an additional 0.25% interest.

iv. Swayamsidha Deposit for Women

This FD plan especially designed for women offers a significantly higher interest rate for a tenure of 18 months. Furthermore, the FD plan extends an additional 0.25% DHFL FD rates to privileged women. Besides the common features, this FD scheme also offers these special benefits-

  • Tax exemption of Rs.5000 on the interest accrued on the deposit scheme.
  • Free accidental death insurance cover for Rs.1 lakh.

v. Wealth2health Fixed Deposit

This unique fixed deposit scheme comes with several health-oriented benefits in addition to steady returns. Wealth2health Fixed Deposit offers a deposit card that can be used to pay hospital bills. Additionally, the FD scheme offers accidental coverage of up to Rs.1 lakh.

vi. Regular Fixed Deposits

A regular FD scheme shares its prominent features with most of the fixed deposit schemes discussed above. Notably, any resident Indian, public or private limited company, HUF, trust and partnership firm can benefit from this particular FD scheme.

How to Calculate DHFL FD Interest?

Individuals can easily calculate the compounding interest on their FD by using the formula mentioned below –

A = P (1 + r/n) ^ nt

In this formula,

  • A Stands for maturity value
  • P stands for principal amount
  • r stands for annual interest rate
  • n stands for compounding frequency
  • t stands for tenure

Example: Ajay invests Rs.10000 in a DHFL fixed deposit for 12 months at the rate of 7%, and the interest is compounded yearly. So as per the compounding interest formula,

A = P (1 + r/n) ^ nt

= 10000 (1+ 0.7) ^ 2*1

On maturity, Ajay will receive Rs.10719 as the maturity value. Thus, his total interest accrued in a year would amount to Rs.719.

To eliminate the hassle of lengthy manual calculations, individuals may use the DHFL fixed deposit calculator online to avail an accurate result. Furthermore, the fact that such a calculator is already attuned to the compounding interest formula will provide a correct outcome within a few seconds. It also helps individuals make several adjustments to undertake a more informed decision pertaining to investment tenure.

TDS on DHFL Fixed Deposits 

The interest earned on DHFL FD is subject to taxation. In a year if the total interest earned by an individual on all deposit accounts exceeds Rs.40000, a TDS at the rate of 10% is deducted. In case of senior citizens, the threshold for the same is Rs.50000.

Other than that, the interest accrued on the fixed deposit is liable for taxation as per the FD holder’s tax bracket. The financial institution issues Form 16A, detailing the tax deduction. Deposit holders can claim tax exemption on their FD interest by submitting Form 15G/15H.

Regardless, to claim tax exemptions successfully, one should meet these following criteria –

For Form 15G

  • One has to be a residing Indian below 60 years of age.
  • An individual or a HUF.
  • The tax calculated on his/her aggregate income should be zero.
  • The interest amount earned by him/her in a year should be less than the specified tax limit for the given year.

For Form 15H

  • One should be a residing Indian who is at least 60 years of age.
  • Tax accrued on the total income should be zero.

It must be noted here that the DHFL FD rates 2020 varies from that of 2021 and undergoes frequent changes. This is why individuals must not make their savings decision based on older rates. Furthermore, individuals must factor in their financial goals to make the most of the DHFL FD interest rates and choose a convenient tenure.