Lakshmi Vilas Bank Fixed Deposit Rate
Lakshmi Vilas Bank Fixed Deposit Rate - FD Rate in India
A Fixed Deposit account is kind of a term deposit account that gives a higher rate of interest than a regular savings account. It is ideal for the conservative investor, as it is a traditional form of savings which has an assured return. It is considered a safe and reliable form of investment option in India as it is free from volatility / market risks. If you have some idle money, opening an FD account is the simplest way to earn a fixed interest income.
FD is a popular mode for investment with the general population in India, as it offers a guaranteed return as opposed to other forms of investment that are considered riskier, for example, the stock market. While opening an FD, you can choose how much you want to deposit and for what time period you want to deposit the amount. Fixed deposits tenures usually range from seven days to ten years. The banks are free to set their own interest rates, which is generally influenced by the deposit amount and tenure among other factors. In India, the interest rate generally ranges from 4% to 8% per annum.
Opening an FD account comes with a catch: once you deposit the amount, you cannot withdraw from it, like you can in a savings account. You can ‘break’ the FD ( make a premature withdrawal), but only upon payment of a penalty. Breaking an FD might also affect the interest payout.
Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened. The documentation process is hassle-free and simple, making it easy even for a first-time investor.
Apart from banks, NBFCs and corporates too offer fixed deposits.
Lakshmi Vilas Bank Deposit Rates
As mentioned before, the rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest, though a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future. Lakshmi Vilas Bank Interest Rates typically range from 5% - 8% per annum.
Lakshmi Vilas Bank FD rates
Following is an overview of Lakshmi Vilas Bank Term Deposit Rates and Lakshmi Vilas Bank Short-Term Fixed Deposit Interest Rates.
Lakshmi Vilas Bank Interest Rates on Fixed Deposits 2015 – 2016:
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Lakshmi Vilas Bank directly.)
Domestic Term Deposit Interest Rates for amount below Rs. 1 Crore:
|Tenure||Interest rate (%)|
|181 - 270 days||7.30|
|271 - 364 days||7.50|
|1 year to Less than 2 Years||7.70|
|2 Years to less than 5 years||7.50|
|5 years to 10 years||7.40|
Lakshmi Vilas Bank FD Interest Rates for Senior Citizens
Lakshmi Vilas Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates as applicable on a regular FD and provide seniors with that extra buffer for their retirement years. As of now, the Lakshmi Vilas Bank Senior Citizen FD rate of interest is 0.50% higher for all domestic term deposits up to 10 years. Also, the fixed deposit must be in the name of the senior citizen depositor. Note that the senior citizen interest rate benefits is not applicable for NRO deposits.
|Tenure||Senior Citizen Interest rate (%)|
|181 - 270 days||7.30|
|271 - 364 days||7.50|
|1 year to Less than 2 Years||8.20|
|2 Years to less than 5 years||8.00|
|5 years to 10 years||7.90|
How to Calculate Lakshmi Vilas Bank Fixed Deposit Interest
You can calculate the maturity amount and the interest earned through Lakshmi Vilas FD by using the Lakshmi Vilas Bank Fixed Deposit Interest calculator. It is very easy to use and comes in handy while to determine how much you want to invest. All you need to do is to enter the kind of deposit, the principal amount, and the tenure of the deposit account. The calculator does the number crunching and presents you with a breakup of the interest payable. You can use the calculator for as many times as you want, using various combinations, to arrive at your final deposit amount and tenure.
You can also take the help of online FD calculators to help compute the amount of interest you will earn on a certain principal amount. There are many online websites that have easy-to-use FD calculators that allow you to instantly calculate the interest earned.
Using such online resources are very easy and comes in handy while deciding on the principal amount for investment. Using an online resource helps in quickly determining how much you want to invest and your final maturity amount. It eliminates the hassles and potential errors of manual calculation.
You can also calculate the interest earned and the maturity value on the principal amount using the following formula.
Calculate Lakshmi Vilas Bank FD Rate
A = P x (1 + r/n)nt
I = A - P
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Years
n = Compounded Interest Frequency
I = Interest Earned
Lakshmi Vilas Bank FD Premature Withdrawal Penalty
It is important to take into count possible emergencies that might require urgent funds that are locked in an FD account. Withdrawing from an FD is possible, as it is still amongst the more liquid investments, but at a cost. You might also lose out on the interest pay out depending on the maturity period left.
You will be allowed to ‘break’ a Fixed Deposit account, provided that you pay a penalty. The bank typically charges a nominal penalty which is communicated to you at the time of application of FD Deposit.
Lakshmi Vilas Bank FD – FAQS
Who is eligible to apply for a fixed deposit account?
Any Resident Individual – individually, or jointly with two or more people are eligible to book an FD. Also eligible to open an FD account are Minors, Associations, Clubs, Societies, Partnership Firms, Trusts, etc.
What is the minimum tenure I can open an FD?
The tenure ranges from 7 days to as long as 10 years.
What are the benefits of a Fixed Deposit?
FDs come with flexible options to withdraw money in times of need. It also yields a higher rate of interest when compared to a savings account.
Is TDS deducted on interest on Domestic Term Deposits?
As per the IT Act, banks are required to deduct TDS on interest paid on term deposits where the total interest paid exceeds the prescribed limit (at present Rs.10000) in the financial year.