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Lakshmi Vilas Bank is one of India’s prominent banks which was established in 1926 under the guidance of V.S.N. Ramalinga Chettiar. The bank was established to help the industrialists and traders and agriculturalists that resided in the region of Karur. Between the years 1961 and 1965 the bank grew rapidly and post 1974, it started to expand to other parts of the country as well.
Today, the bank offers its services through an impressive network of over 400 branches spread across the country. It also has 11 regional offices and well over 800 ATMs. A majority of this network is still spread strongest throughout Tamil Nadu. It has also seen steady and impressive growth over the past few years. Among the many services offered by the bank are fixed deposits that can be used to invest money in a safe environment.Fixed Deposits of Lakshmi Vilas Bank
Lakshmi Vilas Bank fixed deposits provide depositors with the opportunity to invest their money in a safe environment where the money can grow at a steady pace over a fixed period of time. The banks schemes even let investors use these fixed deposits in order to gain tax benefits and get attractive returns on the investment. The duration of these FDs can also be chosen to suit your financial commitments and needs.Eligibility - Who can open an FD account with Lakshmi Vilas Bank
Any individual can open a fixed deposit with the bank. The FD can also be opened jointly or by a group like a company or a society. Even minor above the age can open fixed deposits either under the guidance of a guardian or on their own. Even NRIs (Non Resident Indian’s) can open these fixed deposits.
What Fixed Deposit Schemes does Lakshmi Vilas Bank offer?
The fixed deposit schemes offered are meant to help depositors enjoy the benefits of attractive interest rates and tax savings. The deposits can be opened for tenures that may vary from 15 days to 5 years. The interest earned will depend on the duration of the deposit and the classification of the account based on it being opened by a resident of India or an NRI.
The fixed deposits can also be used to generate additional income as the interest earned through these deposits is credited to you every quarter.
Can NRIs open fixed deposits with Lakshmi Vilas Bank?
Yes, NRIs too can open fixed deposits with Lakshmi Vilas Bank. They will need to go in for NRE, NRO or FCNR deposits. The interest earned on these deposits will differ slightly from domestic deposits based on them being NRO or FCNR deposits.
What is the minimum amount required to open an FD account with Lakshmi Vilas Bank?
The minimum amount required to open an FD will be Rs. 100 irrespective of the account being a tax saver fixed deposit or a normal fixed deposit.
What is the maximum amount that can be deposited in a Lakshmi Vilas Bank FD account?
The bank also offers fixed deposits for large sums with no defined limit on the maximum amount that can be deposited.
What is the minimum / maximum period for which funds can be held in as fixed deposits with Lakshmi Vilas Bank?
The minimum period for which funds can be held in a fixed deposit is 15 days and the maximum is 5 years or more.
What is the procedure to open a fixed deposit account at Lakshmi Vilas Bank?
A fixed deposit with this bank can be opened in two ways. The first is the traditional way of approaching the bank’s branches and submitting the appropriate documents. The second is the online method where all you have to do is fill up a form on the website with your details and which account you want to open.
Once the form is completed it will provide you with a unique number to track your request and also a list of documents that will be needed. Thereafter, a representative of the bank will get in touch with you to help with the remaining formalities.
What are the interest rates offered on Lakshmi Vilas Bank fixed deposits?
The fixed deposit interest rates offered by Lakshmi Vilas Bank depend on the duration of the deposit and the type of deposit.
Domestic deposits can earn an interest rate of 5.5% per annum to 8.75% per annum on deposits held for 15 days to 364 days. For deposits held from 1 year to 2.5 years the interest rate is 8.80% per annum and 9% per annum for deposits held for 900 days. Long term deposits of 901 days to just under 5 years earn 8.80% per annum and those above 5 years earn 8.75% per annum.
NRE and NRO deposits earn 8.80% interest for deposits held for 1 year up to 899 days. Those held for 900 days earn 9% per annum and those held up to 5 years earn 8.80% per annum. Long term deposits of 5 years to 10 years earn 8.75% per annum.
The interest rate on FCNR deposits depends on the currency the account is held in and can range from 1.32% per annum to 5.55% per annum.
The interest rates may change without prior notice at the banks discretion.
Does Lakshmi Vilas Bank offer senior citizens special rates on their fixed deposits?
Yes. Senior citizens get an additional interest rate of 0.50% per annum higher than the prescribed rate. The only condition to avail this interest rate is that the FD opened should be of a tenure greater than 1 year.
This interest rate is applicable only to domestic deposits and not NRE, NRO or FCNR deposits.
Does Lakshmi Vilas Bank offer tax saver fixed deposits?
Yes the bank does offer a tax saver fixed deposit. It is called the Lakshmi Tax Saver Deposit and comes with a lock-in period of 5 years. The interest rate offered on this deposit is 8.75% per annum and offers tax benefits under section 80C of the IT Act. The maximum amount for which tax benefits can be claimed is Rs. 1.5 lakhs.
Are FD accounts with Lakshmi Vilas Bank taxable?
If the interest earned through the FDs held with the bank will be liable for tax if the interest earned crosses the defined limit. These deductions will be made at source.
What if I want to close my fixed deposit prematurely?
Fixed deposits held with Lakshmi Vilas Bank can be closed prematurely however such a premature closure will be liable for a penalty. The penalty will be the payment of an interest rate which is 1% per annum lower than the agreed interest rate.
The deposit will also have to be held with the bank for a minimum of 15 days before foreclosure and this facility is not available for the tax saver fixed deposits.
What are the main features of Lakshmi Vilas Bank fixed deposit schemes?
The fixed deposits of this bank offer many features to depositors. Some of which are:
Are loans provided against FDs at Lakshmi Vilas Bank?
Yes. The bank can provide loans, to depositors, against the deposits held with them for up to 75% of the value of the deposit.
Does Lakshmi Vilas Bank issue credit cards against fixed deposits held at Lakshmi Vilas Bank?
No the bank does not offer credit cards against fixed deposits held with them.