Dhanlaxmi Bank RD Interest Rates

Dhanalakshmi Bank was founded on November 14, 1927, by a group of energetic businesspeople in Thrissur, Kerala's cultural centre, with a capital of Rs.11000/- and just seven staff. In 1977, it was designated as a Scheduled Commercial Bank.

It now has 181 branches and 26 Extension Counters scattered over the states of Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Gujarat, Maharashtra, Delhi, and West Bengal. To a broad set of customers, the bank offers varied products and services.

Among these products and services, it also gives its customers RD account options, which are discussed here.

Recurring Deposit in Dhanlaxmi Bank

Dhanlaxmi Bank makes it simple to start a Recurring Deposit (RD) account. The bank's RD accounts are available for a variety of terms. The interest rate on the RD account goes from 6.50% to 6.90%. The minimum deposit required in the RD account is Rs.1,000.

Dhanlaxmi Bank RD Interest Rates 2024

Here is the table to show the interest rates of Dhanlaxmi Bank Recurring Deposits:

Tenure

Rate of Interest

1 Year

6.90%

More than 2 Years

6.50%

More than 3 Years

6.50%

5 Years to 10 Years

6.50%

Benefits of the Dhanlaxmi Bank RD Account

  • The interest rate earned is often the same as that of a fixed deposit.
  • An investment that is safe and secure
  • Ideal for those who are unable to deposit a significant initial lump sum but wish to deposit small amounts on a monthly basis.
  • It can be opened with a minimal deposit.
  • The total amount received at maturity, including interest
  • The interest rate is greater than that of a standard savings account.
  • Some banks offer loan/overdraft facilities with flexible repayment terms to fit the individual's budget.

Different Types of RDs from Dhanlaxmi Bank

There are varied RD accounts based on tenure, and they are:

  • a) Short-Term RD: Dhanlaxmi Bank offers common citizens a 6.50% interest rate on short-term recurring deposits. The individuals who are over the age of sixty-five can earn 7% per year on their savings. Short-term RDs are ones that are open for a duration of 6 months to less than 12 months.
  • b) Medium Term RD: Medium-term recurring deposits have an investment tenure ranging from one year to five years. Dhanlaxmi Bank's rate of return to regular citizens for opening a medium-term recurring deposit with them ranges from 6.50% to 7% p.a. Senior citizens are provided rates ranging from 7% to 7.50% per year.
  • c) Long Term RD: Dhanlaxmi Bank offers ordinary people and senior citizens 6.50% and 7% p.a., respectively, on long-term recurring deposits. Long-term RD accounts are those with investment terms ranging from 5 to 10 years.

How to Apply for the Dhanlaxmi Bank RD Account?

You can apply for an RD online at the bank's website or call customer service for assistance with your application. You could also go directly to your local Dhanlaxmi bank branch.

If you are not already a Dhanlaxmi Bank customer, you must open a Dhanlaxmi Bank Savings Account and link it to your Dhanlaxmi Bank Recurring Deposit. It is simple and quick to open. You could also go to your local branch and have a bank representative assist you with the procedure. You can also apply online for one. The bank's representative will contact you to discuss your savings requirements.

Who is Eligible for the Dhanlaxmi Bank's RD?

The following are eligible to open an RD with Dhanlaxmi Bank:

  • Minors who have reached the age of 10 and above in their own name (proof of age required).
  • Individual (alone or in collaboration with others).
  • Minors under the guardianship of a natural/legal guardian under the age of ten.
  • Accounts can also be opened by those who are illiterate or blind.
  • Commercial Organization, Company / Corporate Body, Proprietorship/Partnership Firm
  • Undivided Hindu Family
  • Municipality or Panchayat, Government or Quasi-Government entity, Association, Club, Society, Trust, or Religious/Charitable Educational Institutions

FAQs

Q1. How can I make an application for a recurring deposit?

If you are a new customer, you should begin by opening a savings account that can be connected to an RD account. You could also go to your closest branch and fill up the Deposit Account form.

Q2. Is there a highest amount that I can put in RDs each month?

No. There are no limitations to the amount of Recurring Deposit you can deposit each month. You can select any amount based on your financial goals and objectives and the availability of funds.

Q3. What is the term of the RD account?

RDs are typically available from banks for terms ranging from 6 to 120 months (10 years). Some banks also provide 240-month RDs.

Q4. How much tax will I have to pay on RD interest?

The amount of tax you must pay is totally determined by your tax bracket. It is different from one person to the next. Individuals whose total income (including RD interest income) is non-taxable are exempt from paying income tax on RD interest.

Q5. Can I deposit multiple monthly amounts into my RD account?

You cannot deposit several monthly sums into a standard RD account. However, some banks provide Flexi RDs, allowing consumers to deposit any value or amount at any time during the period without making monthly contributions.

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