Private sector lender DCB Bank has revised interest rates on savings bank deposits. The revised rates come into effect on February 7, 2022 and apply to resident, non-resident and non-resident foreign savings bank accounts. The Elite Savings Account, Family Savings Account, Shubh Labh Savings Account, Privilege Savings Account, Cashback Savings Account, Classic Savings Account and Bank Deposit Account. Basic Savings or BSBDA are some of the bank’s savings account offerings.
DCB Bank Savings Account Interest Rates
The bank pays an interest rate of 2.50% on balances up to 1 lakh in the account from February 7, 2022. The bank currently pays an interest rate of 4.50% on balances between 1 lakh and 2 lakh rupees. DCB Bank currently grants an interest rate of 5.00% on balances between 2 lakh and less than 10 lakh. DCB Bank is currently offering an interest rate of 6.25% on account balances ranging from ten lakh to less than twenty-five lakh rupees. Savings accounts with balances between Rs. 25 lakh and Rs. 50 lakh will now earn an interest rate of 6.50%. On savings account balances of 50 lakh to less than 2 crore, the bank offers the highest interest rate of 6.75%. The bank now offers an interest rate of 5.50% on savings account balances of Rs 2 crore to less than 50 crore, and an interest rate of 5.00% on balances of 50 crore and more in the account.
|Balance range (INR)||Interest rate pa WEF 7 February 2022|
|On balances up to 1 lakh in the account||2.50%|
|On balances over 1 lakh to less than 2 lakh in the account||4.50%|
|On balances from 2 lakh to less than 10 lakh in the account||5.00%|
|On balances from 10 lakh to less than 25 lakh in the account||6.25%|
|On balances from 25 lakh to less than 50 lakh in the account||6.50%|
|On balances from 50 lakh to less than 2 crore in the account||6.75%|
|On balances of 2 crore to less than 50 crore in the account||5.50%|
|On balances of 50 crore and above||5.00%|
|Source: Bank website|
If a bank fails, a depositor’s only guarantee is the Rs 5 lakh insurance cover provided by the Deposit Insurance and Credit Guarantee Corporation (DIGCC). Savings accounts, fixed deposits (FD), current accounts, recurring deposits (RD) and other deposits are covered by DICGC insurance. Every depositor in a bank is covered up to a maximum of Rs 5 lakh for the principal and interest amounts they maintain, which is a point to note here for savings account holders.
Interest rates on such a savings account will be calculated on existing additional balances. Under Section 80TTA of the Income Tax Act, interest earned on a savings bank account is tax exempt up to Rs 10,000. If interest received on a savings account exceed Rs 10,000, the additional interest on the savings account will be taxed and the income you derive from a savings account will be taxable under the category “Income from other sources”.
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Article first published: Tuesday, February 8, 2022, 12:23 p.m. [IST]