DHFL Bank FD Interest Rates

Dewan Housing Finance Corporation or DHFL was founded in 1984 to allow middle and low-income households in India access to economical housing. From there onwards, it expanded its operations to offer various financial products to investors, including a lucrative fixed deposit scheme. Now the bank is owned by the Piramal group.

A fixed deposit is one of the most preferred traditional investment options, which helps individuals to generate a steady flow of returns on their savings. FD schemes offer depositors a higher rate of interest than a regular savings account. In line with this, the DHFL FD rates are competitive and enable deposit holders to grow their savings through their chosen tenure.

DHFL Bank FD Rates 2023

Features and Benefits of DHFL FD

• Tenure for DHFL FD ranges from 1 year to 10 years
• Interest payout is available in monthly, quarterly, half-yearly, annual
• Safety ratings - BWR FAA (Pronounced as BWR F Double A Minus)
• Additional Interest of 0.40% for senior citizens and privileges customers
• Auto-renewal / Auto repayment option available
• Trust Deposit placed with DHFL qualifies as specified investment, as defined under section 11(5)(ix) of the Income Tax Act, 1961
• Additional interest of 0.15% provided to all renewals subject to terms and conditions

Types of DHFL Bank FD Schemes

This scheme offers an attractive rate of interest and helps deposit holders to generate substantial earnings. The following are some of its most prominent features:

• Nomination facility is allowed.
• Provides up to 75% of the deposit amount as a loan.
• Returns earned on the deposit amount are safe and secured.
• ECS facility is allowed.
• Provides an additional 0.25% interest to senior citizens.

This deposit is considered most suitable for Trusts, Societies, Clubs and Associations and provides a high rate of interest. This fixed deposit plan extends features that are similar to the scheme Aashray Deposit Plus Individuals.

This particular fixed deposit plan comes with a maximum tenure of 107 months and facilitates two-fold growth to the deposit amount.

• It comes with a nomination facility.
• It offers up to 75% of the deposit money as loan value.
• Returns generated are safe and secured.
• ECS facility is permitted.
• Senior citizens receive an additional 0.25% interest.

This FD plan especially designed for women offers a significantly higher interest rate for a tenure of 18 months. Furthermore, the FD plan extends an additional 0.25% DHFL FD rates to privileged women. Besides the common features, this FD scheme also offers these special benefits-

• Tax exemption of Rs.5000 on the interest accrued on the deposit scheme.
• Free accidental death insurance cover of Rs.1 lakh.

This unique fixed deposit scheme comes with several health-oriented benefits in addition to steady returns. Wealth2health Fixed Deposit offers a deposit card that can be used to pay hospital bills. Additionally, the FD scheme offers accidental coverage of up to Rs.1 lakh.

A regular FD scheme shares its prominent features with most of the fixed deposit schemes discussed above.

Notably, any resident Indian, public or private limited company, HUF, trust and partnership firm can benefit from this particular FD scheme.

Term wise DHFL Bank FD Rates

Medium-term deposits range from 1 year to less than 5 years, and the interest rates are 8.25% to 8.95%

Long-term deposits range from 5 years to 10 years. The interest rate provided is 8.95%.

DHFL vs Other Banks' FD Rates

How to invest in DHFL Bank FD?

For opening a DHFL FD account, one has to visit the nearest DHFL FD branch. Fill out the DHFL FD application form and present all the necessary documents with the deposit amount. On successful processing of the application, an FD receipt will be provided by the DHFL

Eligibility for DHFL Bank FD Account

Individuals or entities satisfying the following criteria can opt for a fixed deposit in DHFL FD –

• Identity card
• Address proof
• Pan card
• A telephone number
• A permanent address

Documents to Open DHFL Bank FD

The following documents have to be furnished for opening a DHFL FD-

• PAN card.
• 2 passport-size photographs.
• Address Proof (bank account statement, telephone bill or electricity bill, ration card)
• Identity Proof( Aadhar card, passport, voter’s card, driving license)
• Filled application form along with the signature.

Tax on DHFL Fixed Deposits

Tax and deductions on tax on all DHFL FD are levied as per the relevant income tax slab applicable to an investor and the interest earned.

Loan Against DHFL FD

DHFL provides loans against their Fixed Deposits. Investors can receive up to 75% of the deposit as a loan. The rate of interest for the loan will be according to the terms and conditions of the DHFL.

Premature Closure of DHFL FD

DHFL allows premature withdrawal of the deposited amount after completing 3 months from the deposit date. 4% interest will be payable for a completed tenure after 3 months but before 6 months. Also, for a completed tenure after 6 months but before Fixed Deposit maturity 1% less interest than the mentioned rate of interest is payable on the deposited amount. If no specified date is mentioned, 2% less than the minimum rate will be considered by DHFL.

FAQs

What is the minimum deposit amount to open an FD with DHFL?

The minimum deposit amount for open a DHDL FD is Rs. 5000

How to Calculate DHFL FD Interest?

Individuals can easily calculate the compounding interest on their FD by using the formula mentioned below –

In this formula,

• A Stands for maturity value
• P stands for the principal amount
• r stands for annual interest rate
• n stands for compounding frequency
• t stands for tenure

Example: Ajay invests Rs.10000 in a DHFL fixed deposit for 12 months at the rate of 7%, and the interest is compounded yearly. So as per the compounding interest formula,

On maturity, Ajay will receive Rs.10719 as the maturity value. Thus, his total interest accrued in a year would amount to Rs.719.

To eliminate the hassle of lengthy manual calculations, individuals may use the DHFL fixed deposit calculator online to avail an accurate result. Furthermore, the fact that such a calculator is already attuned to the compounding interest formula will provide a correct outcome within a few seconds. It also helps individuals make several adjustments to undertake a more informed decision pertaining to investment tenure.

What is the TDS on DHFL Fixed Deposits?

The interest earned on DHFL FD is subject to taxation. In a year if the total interest earned by an individual on all deposit accounts exceeds Rs.40000, a TDS at the rate of 10% is deducted. In the case of senior citizens, the threshold for the same is Rs.50000.

Other than that, the interest accrued on the fixed deposit is liable for taxation as per the FD holder’s tax bracket. The financial institution issues Form 16A, detailing the tax deduction. Deposit holders can claim tax exemption on their FD interest by submitting Form 15G/15H.

What is the criteria for filling form 15G and 15H?

Regardless, to claim tax exemptions successfully, one should meet the following criteria –

For Form 15G

• One has to be a residing Indian below 60 years of age.
• An individual or a HUF.
• The tax calculated on his/her aggregate income should be zero.
• The interest amount earned by him/her in a year should be less than the specified tax limit for the given year.

For Form 15H

• One should be a residing Indian who is at least 60 years of age.
• Tax accrued on the total income should be zero.

What is the eligibility criteria for DHFL Fixed Deposit?

Individuals belonging to any of these categories are deemed eligible to start a DHFL FD account –

One must make it a point to find out the required set of documents to back their eligibility criteria to start an FD account.