DCB Recurring Deposit Interest Rates

DCB Bank Recurring Deposit

DCB Bank Recurring Deposit

A Recurring Deposit (RD) helps you put away money on a regular basis your bank, and earn interest income on it. It is similar to a Fixed Deposit (FD) where you enjoy a higher rate of interest than a savings account for the same principal amount.

The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.

Investing in an RD account is a safe and secure way to save money for your short-term or long-term goals. Imagine stashing away some money to put in your piggy bank on a monthly basis. A recurring deposit works exactly like that except that it earns interest for the amount deposited in the account.

Advantages to opening an RD account:

  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis.
  • An RD account can be opened with small minimum amount.
  • Lump sum received at maturity, similar to an FD
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Interest Rate earned is generally equal to that of an FD
  • Flexible tenures to suit the budget of the individual
  • Recurring Deposit Interest rate is fixed so you are assured of a fixed return
  • Loan / overdraft facility available with some banks.
  • Safe and secure.

Disadvantages:

  • The interest earned might be lower than other, riskier, forms of investment, say investing in stock market etc. But the money is safe from market fluctuations.
  • Penalty charges may apply if you wish to withdraw your RD prematurely.

DCB Recurring Deposit

An RD in DCB instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make fixed monthly installments to an DCB bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.

Features of DCB RD Account

  • Save and deposit small amounts every month.
  • Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
  • Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
  • Flexible tenure – you can choose tenures which can range from a few months to several years.
  • Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Is a safe, low-risk form of investment.
  • Secure from fluctuations.

Types of Recurring Deposits Offered by DCB Bank:

DCB Diamond Khushiyali Deposit

  • Minimum Opening Balance for DCB RD account: Rs. 500 per month and in multiples of Re. 1 thereafter
  • Preferential interest rate for senior citizens
  • TDS on Interest is applicable
  • Deposit period: 12 months to 120 months
  • Nomination facility available
  • Premature Closure of RD allowed
  • Flexibility in making payments. No extra charges even if you miss your deposit installment.
  • SMS alerts for monthly deposit installment

DCB NRE Recurring Deposit

  • Minimum investment amount of Rs.500
  • Deposits can be booked for a minimum tenure of 1 year and up to a maximum tenure of 10 years.
  • The rate of interest on the recurring deposits will be the same as that offered on NRE term deposits, as on date of opening of the Recurring Deposit.
  • The principal and interest are exempt from income tax in India and is freely repatriable.

DCB Recurring Deposit Interest Rates

DCB bank RD interest rate is similar to rates offered for FD accounts. You can get the best rates for an DCB Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of DCB bank RD interest rates including DCB Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in DCB, it is advisable to check with the bank directly.

DCB bank recurring deposit interest rates 2015 – 2016

The current RD Interest rate ranges from 6% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and up to date interest rates.

DCB Bank Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for a normal citizen of India.

DCB Bank RD FAQs

What is the minimum amount required to open an RD with DCB?

The minimum opening balance for a regular recurring deposit with DCB bank is Rs. 500.

What is the minimum and maximum deposit period?

The minimum deposit tenure is 12 months and the maximum period is 120 months.

The minimum deposit tenure is 12 months and the maximum period is 120 months.

Yes, there is a nomination facility on the recurring deposit account.

What is the interest pay-out option?

Interest is paid only when the deposit account is closed, and on maturity.

How do I apply for a regular recurring deposit?

You can open a Regular Recurring Deposit online. You can visit the DCB website and apply through their site. Simply fill in your details in the online form and submit it. A bank representative will get in touch with you to process your request further.

Alternately, you can visit your nearest branch and submit the Deposit Account form.

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence
  • Introduction letter from an existing customer of DCB Bank ( if required)
  • Any other KYC documents as required by the bank

Is partial withdrawal of RD allowed?

Partial withdrawal is not allowed.

I missed an instalment. Do I have to pay penalty?

There are no penal charges for missing an instalment. The account remains active and operational. However, the maturity amount would differ from the amount mentioned on the RD certificate / passbook due to non-payment of your instalment amount.