The DCB Bank is counted among the promptly emerging new generation commercial banks in the private sector. The financial institution, previously known as the Development Credit Bank, has over 334 branches across the country.
The financial institution offers its customers several profitable financial products and schemes, including recurring deposit schemes. Individuals can park a fixed amount periodically in their recurring deposit accounts to earn substantial returns. In fact, the DCB bank RD interest rates, considered to be among the high yielding deposit rates in present times, aids one to gather attractive interest on their deposited amount.
In this article
- DCB RD Interest Rates 2021
- DCB RD Interest Rates -Special Features
- Types of DCB Recurring Deposit Schemes
- How to Calculate DCB RD Interest?
- DCB Recurring Deposit Eligibility
- Documents Required for DCB Recurring Deposit Account Opening
- Factors Influencing DCB RD rates
- TDS on DCB Recurring Deposit
- How to Open an RD Account with DCB?
- DCB Bank RD – FAQs
DCB RD Interest Rates 2021
The table below offers a fair idea about the DCB Bank RD interest rates on a deposit of less than Rs.1 crore.
|Tenure||DCB RD interest rates||DCB RD interest rates for senior citizens|
|7 days to 14 days||4.25%||4.75%|
|15 days to 45 days||4.80%||5.30%|
|46 days to 90 days||4.75%||5.25%|
|91 days to less than 6 months||5.50%||6.00%|
|6 months to less than 12 months||5.95%||6.45%|
|12 months to less than 15 months||6.05%||6.55%|
|15 months to less than 18 months||6.35%||6.85%|
|18 months to less than 700 days||6.50%||7.00%|
|More than 700 days to less than 36 months||6.50%||7.00%|
|More than 36 months to 60 months||6.75%||7.25%|
|More than 60 months to 120 months||6.75%||7.25%|
DCB RD Interest Rates -Special Features
- The minimum deposit amount needed to open an RD account in DCB Bank is Rs. 500 and can be increased in the multiples of Re. 1
- The tenure ranges from 3 months to 120 months (10 years)
- The highest interest rate offered by the bank is 6.5%
- TDS will be applicable as per the existing rules at the time of opening the account
- DCB RD provides a nomination facility to any family member or spouse
- Payment flexibility is provided. No penalties even if you miss your deposit installment
- The principal and interest from DCB RD are exempt from income tax in India and is freely repatriable.
- SMS alerts provided for monthly deposit installment
Types of DCB Recurring Deposit Schemes
The financial institution offers the following types of RD schemes –
DCB NRE Recurring Deposit
The following highlight the major features of DCB NRE Recurring Deposit.
- The scheme can be opened with a minimum deposit amount of Rs.500.
- It comes with a minimum of 1 year and a maximum of 10 years of tenure.
- Both principal and interest amount are exempted from income tax.
DCB Diamond Khushiyali Deposit
The said RD plan accompanies the following features.
- Individuals can open an RD account under this scheme with a minimum monthly deposit of Rs.500.
- Its deposit period ranges between 1 year and 10 years.
- The scheme offers a nomination facility and also allows foreclosure of accounts.
How to Calculate DCB RD Interest?
The interest on the DCB Recurring Deposit can be calculated with the formula:
A= P x (1+R/N) ^ (Nt)
A = Maturity Amount
P = Recurring Deposit installment
N = Number of times the interest is compounded
R = Rate of Interest
t = the tenure
For example, Mr B, who lives in Surat and is below 60 years of age, wants to open an RD account with the DCB Bank with a deposit of Rs 2000 for 5 years. Therefore, the applicable interest rate for him is 6.75%. In that case, his total interest amount at the end of the maturity period will be Rs. 22,918, and his total maturity amount will be Rs. 1,42,918.
DCB Recurring Deposit Eligibility
Individuals who meet these following criteria can open a DCB Recurring Deposit account –
- Residents Indians below 60 years of age.
- NRIs who hold an NRI account with DCB Bank.
- Senior citizens
- Members of HUF
To avail a better insight about case-specific eligibility criteria, individuals should get in touch with the representatives of the financial institution.
Documents Required for DCB Recurring Deposit Account Opening
Address proof documents (any 1)–
- Electricity Bill
- Telephone Bill
- Bank Statement
- Certificate/ID card issued
Identity proof documents (any 1)–
- Voter ID card
- PAN card
- Government ID card
- Driving License
- The Senior Citizen ID card
- Ration Card
Factors Influencing DCB RD rates
Before finding more about the DCB Bank RD interest rates 2021, the following is a look at the factors which tend to influence the rate of interest of recurring deposits.
Some of the most prominent ones include –
- Deposit amount: Individuals who invest a relatively higher monthly deposit amount are more likely to avail a higher rate of interest.
- Deposit tenure: Higher deposit tenure often comes with a relatively higher rate of interest. This proves useful for those individuals who wish to grow their deposit amount substantially.
- Customer type: Usually, there are three types of customers, namely residing RD holders, senior citizens and non-residential Indians. The rate of interest offered to these customer types varies greatly from another. For instance, senior citizens are entitled to avail a higher rate of interest rate on their deposit than the other two customer types.
- RBI policies: Changes in Cash Reserve Ratio (CRR) and repo rate tends to influence the rate of interest provided on recurring deposit rates. For instance, a decrease in the repo rate often lowers the interest rates of several financial products, including recurring deposit.
- Compounding frequency: The number of times interest is compounded on the deposited amount influences its maturity value. In turn, it helps to make the most of the available rate of interest to generate substantial income.
TDS on DCB Recurring Deposit
The interest amount accrued on the recurring deposit amount is subject to taxation. In a financial year, if an individual’s aggregate earnings from all deposit accounts surpass Rs.40000, he/she has to pay a TDS at the rate of 10%. Notably, the tax exemption limit for senior citizens is Rs.50000. Furthermore, RD holders who do not extend their PAN details to the bank will have to pay a TDS at the rate of 20%.
Nonetheless, individuals whose aggregate earnings from all deposits is less than the mentioned threshold limit can claim tax benefits while filing ITR by submitting Form 15G/ Form 15H.
However, there are certain conditions that must be met by the deposit holders to avail such tax-benefits. For example,
For Form 15G
- RD holders must be a residing Indian below 60 years of age.
- Should be an individual or HUF.
- The tax accrued on total income should be zero.
- The total tax amount should be lower than the basic exemption limit for a financial year.
For Form 15H
- RD holders should be at least 60 years of age.
- The taxable amount on aggregate income in a year should be zero.
By retaining such information, individuals looking to park their savings into RD accounts can maximise the profits from their investment effectively.
How to Open an RD Account with DCB?
A DCB recurring deposit account can be opened by visiting any of the nearest DCB offices and submitting the filled-in application form along with the required documents. One can also apply for the same via DCB’s website where an applicant has to enter a few personal details along with the selected RD scheme.
DCB Bank RD – FAQs
Ques. Who is eligible for a DCB RD account?
Ans. All Indian residents and Hindu Undivided Families (HUF) can open an RD account with DCB.
Ques. What is the highest interest rate provided by DCB on their RD?
Ans. The DCB RD interest rate goes up to 6.75%.
Ques. Is nomination facility available on recurring deposit accounts offered by DCB?
Ans. Yes, nomination facility is available on DCB RD.
Ques. Does DCB Bank allow partial withdrawal of RD accounts?
Ans. No, DCB Bank doesn’t allow Partial withdrawal of recurring deposit.