Loan against Deutsche Bank Fixed Deposits

by Narendra Pratap Job Seeker

Deutsche Bank is a leading private sector foreign bank operating in India. The bank offers various fixed deposit schemes with attractive interest rates to its customers. There is also a Deutsche Bank Fixed Deposit calculator available online on the bank’s website that lets depositors know exactly how much their fixed deposits will earn.

If you have surplus funds to invest, a fixed deposit offers a good avenue to park it. Deutsche Bank fixed deposits can be opened online by the bank’s customers or non-customers on its website. By using netbanking, the bank’s customers can transfer amounts from their savings accounts into FDs. Other customers can open accounts by submitting their details online and depositing the money and KYC documents with the bank.

Deutsche Bank Fixed Deposits: Features

Deutsche Bank fixed deposits offer amazing flexibility. You can choose the amount and the tenure and continue to reap gains from higher interest rates. Here are some features of Deutsche Bank’s fixed deposits:

A minimum of Rs.20,000 can be deposited under Deutsche Bank fixed deposits
Fixed deposit can be held for a maximum of 5 years
Higher interest rates with maximum liquidity
Overdraft up to 95% of deposit

Deutsche Bank offers interest rate as per the following schedule for domestic fixed deposits:

Amount/Annual Interest Rate	7 days	8-14 days	15-29 days	30 days	31- 45 days	46-59 days	60-89 days	90-99 days	100 days	101-180 days	181-270 days	271 days-1 yr	1-1.5 yrs	1.5-2 yrs	2-3 yrs	3-4 yrs	4-5 yrs	5yrs
	4.0	6.5	7.0	7.0	7.0	7.25	7.25	7.5	7.5	7.5	7.5	7.25	7.5	7.5	7.5	7.75	8.0	8.6

The cumulative yield* can be as high as 10.61% (simple interest rate of 8.60%) on a 5-year fixed deposit offered by Deutsche Bank.

Loan against Deutsche Bank FDs

Deutsche Bank offers overdrafts against Fixed Deposits that adds liquidity to the deposit. While your deposit continues to earn interest, you can fulfil temporary financial constraints with the amount borrowed through this facility.

Finance can be availed against fixed deposits held in the name of relatives, friends or family members. This offers you the most instant and convenient line of credit against your fixed deposits. You pay interest on only the amount utilized via overdraft and don’t lose interest on your FD. The interest rate is pegged 2 or 3 percent higher than what you earn in your deposit.

Here are some of the benefits of loans against Deutsche Bank FDs:

The tenor could be from 7 days to 365 days
Depositors pay penal interest of 2% over the interest they earn
If the FD is in the name of a third party, 3% penal interest over the deposit rate
Rs. 25,000 is the minimum amount that can be borrowed
Upto 95% of the fixed deposit can be taken as overdraft

Conclusion:

Deutsche Bank Fixed Deposits offer good returns combined with safety for depositors. They deliver relatively stable returns up to 10.61% cumulatively and come with the advantages of liquidity and easy opening procedures. Fixed deposits can be conveniently opened online through the bank’s website and an overdraft facility allows you to withdraw up to 95 percent at attractive interest rates.