Dhanlaxmi Bank FD Interest Rate

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.

• 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. 

• 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.  

To invest in the Dhanlaxmi Bank following are eligible to invest in the FD scheme:

• Individuals
• Proprietorship
• Partnership firm
• Clubs and associations
• Minors
• HUF
• Corporate bodies

The following documents are required to invest in the Fixed deposit scheme of Dhanlaxmi Bank.

Documents accepted as ID and Address proof:

• Passport
• 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.

You can open fixed deposit accounts in both online and offline methods:

Online Method:

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

Offline Method:

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

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.

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. 

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.