Summary : DCB Bank Limited’s resident Indian fixed-deposit schedule effective 27 October 2026 lists a 60-month-to-61-month tenure for single deposits below ₹3 crore. The published annual rate is 7.50% for general customers, 8.00% for resident senior citizens aged 60 to below 70, and 8.05% for the bank’s Senior Citizen Plus category aged 70 and above. The official table also displays annualised yields calculated on an assumed quarterly-compounding basis for the highest tenure in the slab; those yields are not the contractual rate and do not apply identically to every payout option or booking date. Premature closure ordinarily uses the rate applicable on the original booking date for the completed tenure, subject to DCB Bank’s penalty policy; non-callable deposits cannot be closed early. Interest remains taxable, and section 393 TDS thresholds for Tax Year 2026-27 are ₹50,000 for non-senior citizens and ₹1,00,000 for senior citizens, subject to conditions. DICGC protection aggregates principal and interest up to ₹5 lakh per depositor per bank in the same right and capacity. This guide is neutral and does not recommend or rank the deposit.
- Official Rate Slab Effective 27 October 2026
- Choose the Deposit Mandate and Payout Instruction Carefully
- Callable and Non-Callable Deposits Are Different Products
- Payout Frequency Changes Cash Flow and Compounding
- Premature Closure Uses the Completed-Tenure Rate and Penalty
- Interest Calculation and Maturity Reading
- Tax and TDS for Tax Year 2026–27
- Form 121 Replaces the Old Form 15G and 15H Architecture
- DICGC Insurance Applies Across All DCB Bank Branches
- Deposit File to Retain
- Frequently Asked Questions
- What is DCB Bank’s rate for the 60–61 month resident FD?
- Is the displayed 9.00% or 9.72% figure the contractual interest rate?
- What penalty applies to premature closure below ₹3 crore?
- Is interest payable if the FD is closed before 14 days?
- Can a non-callable DCB Bank FD be closed early?
- What are the bank-interest TDS thresholds in Tax Year 2026-27?
- Does Form 121 make the interest tax-free?
- How much DICGC cover applies?
- Key Takeaways
Official Rate Slab Effective 27 October 2026
DCB Bank’s current resident Indian schedule applies to single deposits below ₹3 crore. For the 60-month-to-61-month slab, the general rate is 7.50% per annum, the senior-citizen rate is 8.00%, and the Senior Citizen Plus rate is 8.05%. The bank defines the senior category as resident customers aged 60 to below 70 and Senior Citizen Plus as resident customers aged 70 and above. Eligibility and the customer’s age on the relevant booking date should be evidenced in the bank record and deposit advice.
| Customer category | Published rate | Displayed annualised yield |
|---|---|---|
| General resident customer | 7.50% p.a. | 9.00% |
| Resident senior citizen aged 60 to below 70 | 8.00% p.a. | 9.72% |
| Resident Senior Citizen Plus aged 70 or above | 8.05% p.a. | 9.79% |
The annualised yield assumes quarterly compounding and the highest tenure in the rate slab, as described by the bank. It is not an additional rate. A monthly or quarterly payout deposit distributes interest rather than compounding it to maturity, while a reinvestment deposit compounds quarterly under the bank’s calculation method. The actual maturity amount depends on principal, exact number of days, payout option, booking date, tax deduction and whether the deposit remains until maturity.
Choose the Deposit Mandate and Payout Instruction Carefully
Callable and Non-Callable Deposits Are Different Products
The resident rate table should be read with the application and receipt. A callable fixed deposit can be closed before maturity subject to the bank’s terms and penalty. A non-callable fixed deposit expressly bars premature withdrawal and may have separate amount or rate conditions. The depositor should not assume that a headline slab shown online is available under both variants on identical terms. The deposit advice should state the product, tenure, rate, maturity date and callable status.
Payout Frequency Changes Cash Flow and Compounding
DCB Bank explains that interest can be paid monthly, quarterly or at maturity, depending on the product. A reinvestment deposit compounds interest quarterly and pays principal plus accumulated interest at maturity. For payout deposits, interest is credited at the selected interval. Monthly payout calculations may differ from a simple annual-rate division because banks apply their operational interest methodology. The customer should retain the application and verify the first credit against the bank advice.
Premature Closure Uses the Completed-Tenure Rate and Penalty
DCB Bank’s deposit policy states that, when early withdrawal is permitted, interest is based on the rate prevailing on the original deposit date for the period the money actually remained with the bank. The current computation note states a premature-closure penalty of 0.50 percentage point for INR fixed deposits below ₹3 crore and 2.00 percentage points for deposits of ₹3 crore and above. This article’s selected rate slab is specifically for a single deposit below ₹3 crore, so the 0.50-point policy is the relevant published penalty category, subject to the final receipt and booking-date terms.
For deposits below ₹3 crore, the computation note states that no interest is payable if the deposit is closed before completing 14 days. Early closure after that minimum does not preserve the original 60–61 month rate. The bank identifies the rate applicable to the completed tenure as at the original booking date and then applies the applicable penalty. Interest already paid under a monthly or quarterly option may be recovered or adjusted in the closure proceeds.
| Event | Published treatment | Evidence to obtain |
|---|---|---|
| Callable FD closed early after 14 days | Completed-tenure rate from booking date, less applicable 0.50-point penalty for below-₹3-crore deposit | Bank-generated closure quotation |
| Below-₹3-crore FD closed before 14 days | No interest payable under the published computation note | Closure advice and principal credit |
| Non-callable FD | No premature withdrawal | Product designation and application declaration |
| Premature renewal for longer balance period | Policy permits qualifying renewal at applicable renewal-date rate without penal interest | Closure and new-deposit receipts |
| Maturity renewal | Prevailing rate and chosen tenure apply under instructions | New receipt and updated nomination/mandate |
Interest Calculation and Maturity Reading
DCB Bank states that fixed-deposit interest is calculated for the actual number of days funds remain in the deposit, using 365 days for a non-leap year and 366 days for a leap year. In a reinvestment option, quarterly interest is added to principal for the next quarter. Because this tenure crosses several years, the maturity computation may span both leap and non-leap years. A rate multiplied by years is therefore not a reliable maturity calculation.
The displayed annualised yield assumes uninterrupted quarterly compounding for the highest tenure in the slab. It does not account for TDS, early closure, payout selection or a booking at a shorter point within the slab. Depositors should use the amount shown on the final deposit advice and reconcile maturity proceeds when credited. Any automatic-renewal instruction should be reviewed because the renewal rate is the rate prevailing for the selected tenure at renewal, not necessarily 7.50%, 8.00% or 8.05%.
Tax and TDS for Tax Year 2026–27
Fixed-deposit interest is generally taxable according to the depositor’s applicable law, residential status and method of accounting. TDS is a collection mechanism and does not determine the final tax liability. For interest covered by the banking-company row in section 393 of the Income-tax Act, 2025, the threshold is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen, subject to the statutory aggregation and other conditions. The threshold applies to the covered interest from the payer, not independently to each receipt or branch under core banking.
Form 121 Replaces the Old Form 15G and 15H Architecture
For Tax Year 2026-27, an eligible resident with nil estimated tax liability may consider Form 121 under section 393(6) and Rule 211. The declaration should ideally reach the bank before interest is credited or paid. Submitting the form does not exempt the interest; it allows non-deduction only when eligibility is satisfied. The depositor should retain the acknowledgement or UIN and reconcile the bank’s interest certificate with Form 26AS and the Annual Information Statement.
DICGC Insurance Applies Across All DCB Bank Branches
DCB Bank is a banking company within the DICGC deposit-insurance framework. The maximum cover is ₹5 lakh for principal and interest together per depositor per bank in the same right and capacity. Savings, current, recurring and fixed deposits held across different DCB Bank branches in the same ownership capacity are aggregated. Multiple receipts, branches or digital booking channels do not create separate ₹5 lakh limits.
Accounts held in genuinely different rights and capacities are treated according to DICGC rules. Joint accounts with the same holders in the same order are aggregated; different ownership capacities can be treated separately when legally valid. DICGC insurance is triggered by specified events such as liquidation, licence cancellation, reconstruction or all-inclusive directions with withdrawal restrictions. It is not a promise of immediate liquidity and does not protect amounts above the insured ceiling.
| Insurance question | Correct reading |
|---|---|
| Are principal and interest each insured for ₹5 lakh? | No. The combined maximum is ₹5 lakh. |
| Does each DCB Bank branch receive a separate limit? | No. Same-right-and-capacity balances across branches are aggregated. |
| Do several FD receipts multiply insurance? | No. Receipt count does not change the depositor-per-bank test. |
| Does insurance guarantee access at any time? | No. DICGC operates upon specified statutory events and within the prescribed process. |
Deposit File to Retain
- Rate-page capture or schedule effective on the booking date.
- Application, KYC, PAN, age proof and resident-status evidence.
- Deposit advice showing principal, product, callable status, tenure, rate and maturity date.
- Payout, nomination, joint-holding and renewal instructions.
- Interest certificate, Form 26AS, AIS and Form 121 acknowledgement where applicable.
- Premature-closure quotation and final calculation if closed early.
- Schedule of all DCB Bank balances held in the same right and capacity.
Frequently Asked Questions
What is DCB Bank’s rate for the 60–61 month resident FD?
The schedule effective 27 October 2026 shows 7.50% for general residents, 8.00% for resident senior citizens aged 60 to below 70, and 8.05% for resident customers aged 70 and above.
Is the displayed 9.00% or 9.72% figure the contractual interest rate?
No. It is an annualised yield based on assumed quarterly compounding for the highest tenure in the slab. The contractual rates are 7.50%, 8.00% and 8.05% for the stated categories.
What penalty applies to premature closure below ₹3 crore?
The bank’s published computation note states 0.50 percentage point, applied with the completed-tenure rate rules and booking-date terms.
Is interest payable if the FD is closed before 14 days?
For an INR fixed deposit below ₹3 crore, the published note states that no interest is payable before completion of 14 days.
Can a non-callable DCB Bank FD be closed early?
No. The bank’s deposit policy and application state that non-callable deposits cannot be prematurely withdrawn.
What are the bank-interest TDS thresholds in Tax Year 2026-27?
Section 393 states ₹50,000 for a non-senior citizen and ₹1,00,000 for a senior citizen, subject to statutory conditions.
Does Form 121 make the interest tax-free?
No. It may support non-deduction for an eligible declarant with nil estimated tax liability, but the interest remains subject to tax law.
How much DICGC cover applies?
Up to ₹5 lakh for principal and interest combined per depositor per bank in the same right and capacity, aggregated across branches.
Key Takeaways
- The current 60–61 month rates are 7.50%, 8.00% and 8.05% for the stated resident customer categories.
- Annualised yield is not the contractual rate and depends on quarterly-compounding assumptions.
- Premature closure uses the completed-tenure rate and published penalty; non-callable deposits cannot be broken.
- TDS thresholds do not make interest exempt or determine final tax.
- DICGC cover is ₹5 lakh for principal and interest combined, aggregated at bank level in the same right and capacity.
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Disclaimer: This article is a neutral educational summary of DCB Bank Limited’s published resident fixed-deposit rates and policy material checked for the 60-month-to-61-month tenure on 2 November 2026. It is not an offer, solicitation, recommendation, ranking, personalised investment opinion or promise that the deposit is suitable, continuously available or capable of producing a stated net return. Rates, annualised yields, effective dates, tenure boundaries, age categories, deposit limits, payout calculations, compounding, day-count methods, callable or non-callable status, premature-closure penalties, renewal treatment, nomination, loan facilities and operational requirements may change or may differ under the final application and deposit advice. Tax treatment depends on the depositor’s residential status, total income, accounting method, PAN, payer-level aggregation and statutory eligibility; a TDS threshold or Form 121 declaration does not make interest exempt. DICGC cover is subject to statutory triggers, aggregation, set-off and the same-right-and-capacity rules, with a combined principal-and-interest ceiling of ₹5 lakh. It does not assure immediate liquidity or recovery above the ceiling. Depositors should verify the live bank page, applicable product terms, deposit receipt, Income Tax Department guidance and DICGC rules immediately before acting, and should obtain qualified tax or financial advice suited to their circumstances. TaxGuru accepts no responsibility or liability for rate changes, yield differences, tax consequences, premature-closure loss, denied declaration, uninsured balance, delayed access, bank action or any other consequence arising from reliance on this article or facts and rules that differ from those described.
