DBS Bank RD Interest Rates 2021
DBS Bank RD Rate of Interest, 2021
| Tenure | General Rates | Senior Citizen Rates |
|---|---|---|
| 90 days | 2.50% | 2.50% |
| 91 days to 180 days | 2.75% | 2.75% |
| 181 days to 269 days | 3.00% | 3.00% |
| 270 days to 1 year | 3.25% | 3.25% |
| 1 year to 1 year 375 days | 4.05% | 4.05% |
| 376 days to 1 year 364 months | 4.05% | 4.05% |
| 2 years to 2 years 5 months 29 days | 4.30% | 4.30% |
| 2 years 6 months to 2 years 364 days | 4.30% | 4.30% |
| 3 years to 3 years 364 days | 5.50% | 5.50% |
| 4 years to 4 years 364 days | 5.50% | 5.50% |
| 5 years to 10 years | 5.50% | 5.50% |
DBS Bank Recurring Deposit
- DBS Bank offers RD interest rates up to 5.50%
- Interest on RD with DBS Bank is compounded quarterly.
- DBS Bank accepts minimum deposits starting at Rs. 1,000.
- For senior citizens DBS Bank offers RD rate upto 5.50%.
- The deposit tenure ranges from 6 months to 120 months
- Visit any DBS Bank branch to avail this service
- TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
DBS Bank Recurring Deposit Schemes Types
Based on the tenure DBS Bank Recurring Deposit can be classified into three types, these are:
Short-Term RD
Under this type of DBS Bank Recurring Deposit your deposit’s tenure ranges between 6 months to 3 years. Such RD is best suited for those who are looking to develop the habit of savings.
Medium-Term RD
When you are not willing to commit for the long tenure and are not sure how much benefit you can get from RD, then opting for medium term recurring deposit is a good decision. It provides the right balance of flexibility and commitment to invest so that you can assess its benefits. The tenure basically ranges between 3 years to 7 years.
Long-Term RD
The long term RD is best suited when you want to earn the return on your investment but do not have the lump sum amount to invest in fixed deposit. By investing recurring deposits you get the flexibility of making monthly investments, and earn the return similar to FD. The tenure basically ranges between 7 years to 10 years.
DBS Bank RD Account
DBS Bank offers recurring deposit option to their customers to park their periodically generated surplus savings for a fixed tenure. A customer is required to make a deposit once into their RD account at the time of opening the account with the bank. The customer then makes periodic deposits and withdraws any money in the account during the tenure of the deposit.
Regular RD
- The minimum tenure of this RD is 6 months
- The minimum deposit to be made in this account is Rs. 1,000
DBS Bank Recurring Deposit Rates
There are some factors that affect DBS Bank Recurring Deposit interest rates. These are as follows:
DBS Bank RD Interest Calculator
RD maturity amount that you will get depends on the following three parameters
- Deposit amount – This is the initial amount deposited by a customer in DBS Bank. Higher interest rate might be offered on larger deposits. DBS Bank offers deposit amount starting at Rs. 1,000.
- Rate of Interest- DBS Bank offers a higher rate of interest on recurring deposits of longer tenure and lower interest rate on deposits held for a shorter period. Highest interest rate offered by DBS Bank is 5.50% for deposit amount.
- Period of deposit- Bank offers low interest rate for short tenure RDs and higher interest rate for long tenure RDs.
Duration of Recurring Deposits with DBS Bank
You can open a Recurring Deposit account with DBS Bank for a minimum tenure of 6 months which can go up to maximum tenure of 120 months.
Premature withdrawal of RD with DBS Bank
Premature withdrawal of RD with DBS Bank Bank is allowed. DBS Bank Bank may charge a nominal amount of penalty as per their banking norms.
However, Partial withdrawal of RD account is not allowed.
Penalty for delayed installment of RD with DBS Bank
Bank may give you grace of some days if you delay the payment beyond the due date. In case you do not pay your installment after due date, DBS Bank Bank will charge a penalty as per their norms.
Illustration: Mr. A opens a RD account for tenure of 1 year with periodic deposits of ₹ 5,000 per month at an interest rate of 5.50%. In this case, the maturity amount at the end of 1 year will be ₹ 61,809 and includes the collected principal and total interest earned on the principal amount during the period at ₹ 1,809. Similarly, you can calculate the interest and maturity amount for higher tenures by using RD calculator.
FAQs
✅What is the eligibility for opening an RD account?
Indian residents and HUF (Hindu Undivided Families) can open RD account. NRIs can also open the RD account through NRO and NRE accounts.
Banks provide RD scheme for minors as well, under the guardianship of parents to supervise their finances.
✅What is the general tenure/duration of DBS Bank Recurring Deposits?
DBS Bank RD can be opened for minimum 6 months to maximum tenure of 120 months.
✅Is premature withdrawal allowed in RD accounts?
The amount can only be withdrawn on maturity. In case of emergency you can break your RD before maturity, but after that your account will be closed. Banks may deduct 1 or 2 percent penalty from the interest accrued on your RD amount for the period for which the amount was with the bank.
The minimum lock in period is 3 months and if the depositor request a premature withdrawal before that, he earns zero interest and only the principal amount will be refunded to him. Apart from cancelled interest, any incentives offered are also withdrawn.
✅Is partial withdrawal of RD accounts allowed by DBS Bank?
Partial withdrawal of recurring deposit is not allowed by DBS Bank. However, some banks offer the facility to obtain Loan or Overdraft by keeping your RD as collateral. On the other hand, premature withdrawals are allowed by post offices if you have an RD account with them for at least a year. The withdrawn amount is considered a loan, which has to be paid in lump sum.
Premature Closure is allowed, but with some penalty.
✅What exactly happens on maturity of RD account?
On maturity of your RD account, you can ask the bank to transfer the principal amount and the accumulated interest component directly into your linked savings account. You can also invest your RD amount in fixed deposits after maturity.
✅Is nomination facility available in DBS Bank RD account?
Nomination facility is available in DBS Bank recurring deposits. Whether you open it in single name or joint name, only one nominee per account is permissible. You should ensure that the nomination is followed as per RBI rules. You can change the nominee through declaration in appropriate form.
