# DHFL RD Interest Rates

Dewan Housing Finance Corporation Limited or DHFL is a well-known Indian housing finance company with its headquarters in Mumbai and branches across the country. Besides affordable housing-oriented financial products, DHFL also offers its customers other lucrative financial products, of which a recurring deposit scheme is particularly worthy of mention.

Recurring deposits or RDs are term deposit plans which allow individuals to deposit a fixed amount into their account each month and earn attractive returns in the form of interests. The DHFL RD rates provided on the said deposit scheme helps individuals to mobilise their small savings and generate significant returns on the same.

## DHFL RD Interest Rates for 2023

The table below illustrates the interest rates for DHFL RD:

 Tenure RD Rates 6 months 7.75% 9 months 7.75% 12 months 7.75% 15 months 7.75% 18 months 7.75% 21 months 7.75% 24 months 7.75% 27 months 7.75% 30 months 7.75% 33 months 7.75% 3 years to 3 years 364 days 7.75% 4 years to 4 years 364 days 7.75% 5 years to 10 years 7.75%

Here, it must be noted that external factors like RBI’s policies, recession, inflation, economy, etc. tend to influence the DHFL RD interest rates.

The availability of the financial product and its rate of interest may vary in the current situation. Individuals must, thus, contact the representative of the financial institution to gain full insight into the same.

## DHFL RD Interest Rates -Special Features

• The minimum deposit amount needed to open an RD account in DHFL is Rs. 500 and can be increased in the multiple of 100
• The tenure ranges from 6 months to 120 months (10 years)
• The interest rate offered by the bank is 7.75%
• TDS will be applicable as per the existing rules at the time of opening the account
• DHFL provides a nomination facility to any family member or spouse
• DHFL provides joint RD accounts facility and also provides the ECS debit facility for interest payouts.

## How to Calculate DHFL RD Interest?

The interest on the DHFL Recurring Deposit can be calculated with the formula:

A= P x (1+R/N) ^ (Nt)

Here,

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 Delhi and is below 60 years of age, wants to open an RD account with the Bank of India with a deposit of Rs 500 for 5 years. Therefore, the applicable interest rate for him is 7.75%. In that case, his total interest amount at the end of the maturity period will be Rs.6687, and his total maturity amount will be Rs. 36,687.

## DHFL RD Account Eligibility

Individuals belonging to any of the following categories can open a recurring deposit account with DHFL-

• Resident Indian
• HUF
• Non-resident Indian

Notably, NRIs can opt for a DHFL RD scheme through NRE and NRO accounts. Individuals should find out from the representatives of the financial institution about case-specific eligibility criteria to avail a better idea about the same.

## Documents Required for DHFL Recurring Deposit Account Opening

• Electricity Bill
• Telephone Bill
• Passport
• Bank Statement
• Certificate/ID card issued

Identity proof (any 1)

• Passport
• Voter ID card
• PAN card
• Government ID card
• The Senior Citizen ID card
• Ration Card

## Types of DHFL Recurring Deposits

DHFL provides its customers with a Regular Recurring Deposit Scheme, which is also known as the Small Savings Scheme. The said scheme comes in two types, namely –

### Cumulative Recurring Deposits

With this deposit option, individuals can choose to avail the interest earned, alongside the amount deposited after the maturity of the account. Since individuals choose not to avail a periodic payout, and the interest is accrued periodically, the account holder can enjoy substantial returns on the maturity of his/her RD.

### Non-cumulative Recurring Deposits

With a non-cumulative deposit individuals can opt for periodic payouts from their RD, and comparatively, earn lower returns as compared to cumulative RDs.

These are the two types of deposit options that individuals can choose between when it comes to DHFL recurring deposits.

## Factors Influencing DHFL RD Rates

There are several internal and external factors that influence the interest rates offered on recurring deposits. For instance, these following are among the most important ones which affect the DHFL RD rates in general –

• Tenure

Individuals can select the deposit tenure as per their requirements. The DHFL recurring deposit comes with a tenor that extends from a year to 10 years. In this regard, it must be noted that the DHFL bank RD rates depend on the chosen tenure. For instance, an RD account that is held over a longer tenure attracts a relatively higher rate of interest.

• Deposit amount

It must be kept in mind that a higher deposit value attracts a better interest rate. Individuals can start a recurring deposit account with DHFL with as little as Rs.500, to be further increased in multiples of 100. A higher deposit amount attracts a higher rate of interest.

• Customer Type

DHFL recurring accounts have had a reputation of extending a substantially high return on the deposit amount. Notably, the DHFL recurring deposit rates provided to senior citizens is comparatively higher than the regular RD holders.

Other than these, changes in RBI’s policies and the general condition of the economy also majorly influence the DHFL RD rates.

### DHFL RD Calculator

Now, calculating the compounding interest on DHFL RD schemes may prove to be a lengthy process. Consequently, it may also come with an additional risk of computing the wrong maturity value or interest amount due to careless mistakes.

To avoid the same, individuals may use the DHFL RD calculator online and achieve more accurate results. Another added benefit of using the RD calculator is that individuals will be able to obtain accurate results within a few seconds by simply entering the deposit value and tenure.

## TDS on DHFL Recurring Deposits

According to the Income Tax Act, 1961, all recurring schemes are subject to taxation. The reason behind it is that the interest amount earned on the deposited value is added to the depositor’s yearly income. Resultantly, the interest earned on the RD account becomes a part of their taxable income.

It must be noted that if at any time the interest earned on DHFL RD exceeds Rs.10000 in a financial year, a TDS of 10% is charged on it. Regardless, RD holders can claim a tax exemption on TDS by submitting Form 15G or Form 15 H.

Individuals who meet these following criteria can claim exemptions by submitting Form 15G:

• A resident Indian who is less than 60 years of age.
• An individual or HUF.
• Tax on total income should be nil.
• Accumulated interest in a year should be lower than the exemption limit.

Individuals who meet these following can claim exemptions by submitting Form 15H –

• A residing Indian who is at least 60 years old.
• The total tax on aggregate income is nil.

Regardless, individuals who intend to avail a recurring deposit from the financial institution should also weigh in other factors apart from the DHFL RD rates. It will help them to make the most of this savings scheme as per their convenience and requirement.

## How to Open an RD Account with DHFL?

Customers wishing to apply for a DHFL recurring deposit account can visit any of the nearest DHFL offices and submit the filled-in application form along with the required documents to open an RD account. One can also apply for the same via DHFL’s web portal where an applicant has to enter a few personal details along with the selected RD scheme. A DHFL official will contact the applicant for processing the RD account application further.

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