IDBI Fixed Deposit

IDBI Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on IDBI Bank FDs is higher in their savings account. One can invest in IDBI Bank FDs through both online and offline modes with a minimum investment of INR 10,000. This article covers IDBI Bank FD, its features and interest rates in detail.

IDBI Bank Fixed deposit schemes

Following are the types of IDBI Bank fixed deposit scheme:

• Suvidha Fixed Deposit Advantage
• Suvidha Tax Saving Fixed Deposit
• Systematic Savings Plan (SSP)
• Systematic Savings Plan Plus (SSP Plus)
• Floating Rate Term Deposit

IDBI Bank Suvidha Fixed Deposit

The main objective of the Suvidha Fixed Deposit is safety, credibility, liquidity and attractive interest rates. The scheme has the highest interest rates in the industry. Also, the scheme offers any time access to the funds.

• Tenure: 7 days to 20 years
• Minimum Deposit Amount: INR 10,000
• Preferential Interest Rates: Available for senior citizen depositors.
• Premature Withdrawal: Available, however, with a penalty.
• Overdraft Facility: Available, at competitive rates
• Auto-Renewal Facility: Available
• Sweep In Facility: Available

IDBI Bank Suvidha Tax Saving Fixed Deposit

The tax saving FD offers dual benefits of higher returns from investments and tax exemption from Section 80C of the Income Tax Act, 1961.

• Lock-in period: 5 years
• Maximum Deposit Amount: INR 1,50,000
• Loan Facility: Available
• Premature Withdrawals: Not available     
• Payout: Lump sum payout after five years

IDBI Bank Systematic Savings Plan (SSP)

IDBI Systematic Savings Plan (SSP) helps save at their convenience. One can start saving any fixed amount from INR 100 to less than INR 2 crore every month. The scheme is suitable for pre-planned financial goals.

• Tenure: 1 year – 10 years
• Minimum Deposit Amount: INR 100
• Maximum Deposit Amount: INR 2 crore
• Nomination Facility: Available

IDBI Bank Systematic Savings Plan (SSP Plus)

The SSP Plus scheme offers Regular savings with Principal + Interest protection and also Complimentary Insurance cover along with reward points.

• Tenure: 3 years – 10 years
• Minimum Deposit Amount: INR 5,000 and in multiples of INR 100 thereafter.
• Maximum Deposit Amount: INR 2 crore
• Reward points: Complimentary redeemable reward points up to 1,000
• Personal Accident Insurance Cover: Complimentary cover up to INR 5,00,000
• Loan facility: Available up to 95% on the deposit balance
• Tax Deducted at Source: Applicable. No TDS is deducted if the depositor submits Form 15G/ 15H.
• Nomination Facility: Available
• Premature closure: Applicable; however, the accidental cover offered will be withdrawn from the date of closure.

IDBI Bank Floating Rate Term Deposit

A floating rate term deposit is a type of fixed deposit where the interest rate is not fixed for the entire tenure of the deposit. However, the rate moves in tandem with the reference or base rate, which is periodically reset. The depositors can take advantage of the interest rate changes through the scheme without having to close or rebook the scheme. Following are the features of the scheme:

• Tenure: 1 year to 10 years
• Minimum Deposit Amount: INR 10,000 and in multiples of INR 1,000 thereafter.
• Maximum Deposit Amount: Less than INR 1 crore.
• Interest: Reset every quarter and paid quarterly
• Nomination Facility: Available
• Auto-Renewal Facility: Available
• Premature Withdrawal: The scheme has a minimum lock-in period of one year. Therefore, no premature withdrawals are allowed before one year. Post one year of the scheme, premature withdrawals are available, however, with a penalty.
• Loan/ Overdraft Facility: Available, Depositors can avail loan up to 90% of the deposit amount.

Key Features of IDBI Bank Fixed Deposit Schemes

Tenure: The tenure of an IDBI Bank FD ranges from seven days to twenty years. One cannot change the tenure of their IDBI Bank FD once it has commenced.

Minimum and maximum investment: The minimum investment in IDBI Bank FD is INR 10,000. However, there is no limit on the maximum amount of investment in IDBI Bank FD.

IDBI Bank FD rates: IDBI Bank FD rates range between 2.9% and 5.1%. Moreover, IDBI Bank offers an additional 0.5% interest to senior citizens on their FDs. IDBI Bank pays interest as per the choice of the investor. The investor can choose from monthly, quarterly, half-yearly, yearly intervals, or at maturity.

Premature withdrawal: All IDBI Bank FDs can be withdrawn prematurely except for the tax-saving FD. The bank charges a penalty if the deposits are withdrawn before the completion of FD tenure. The penalty is as per the terms and conditions of IDBI Bank.

Loan against FD: IDBI Bank offers loans against their FDs. Investors can get up to 90% of the deposit amount as a loan against their IDBI Bank FD investment. Also, the interest rate for the loan will be 1%-2% above the FD interest rate. Moreover, the tenure of the loan is limited to the tenure of the IDBI FD.

Nomination facility: IDBI Bank FD investors can nominate beneficiaries for their FDs.

Auto-renewal: Investors can opt for auto-renewal of their IDBI Bank FDs.

Safety: The Deposit Insurance Scheme of RBI covers all IDBI Bank deposits. The scheme covers all IDBI Bank deposits up to INR 5,00,000.

Additional payments: Investors cannot deposit an additional amount in an IDBI Bank FD once it has commenced. However, they can open a fresh IDBI Bank FD with the new amount.

How to open an IDBI Bank FD deposit account?

One can open an IDBI Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open an IDBI Bank FD account through internet banking:

Login to the IDBI Bank NetBanking account.

Under the ‘Request’ tab, select the ‘Opening a Fixed Deposit’ option.

Fill in all the deposit information and maturity instructions.

Verify the details and click on the ‘Submit’ button.

A confirmation notification will be displayed on successfully booking the deposit.

Please, note that the nominee details have to be physically filled and submitted to the bank.

Through Mobile App

IDBI Bank App

The following steps will guide in opening an FD account through IDBI Bank Mobile App:

Download the IDBI Bank App and log in.

Select the ‘Opening a Fixed Deposit’ option to proceed.

Verify the details and click on the ‘Submit’ button.

A confirmation notification will be displayed on successfully booking the deposit.

Please, note that the nominee details have to be physically filled and submitted to the bank.

Offline IDBI Bank FD Opening

To open an IDBI Bank FD account offline, one has to visit the nearest IDBI Bank branch. Fill the IDBI Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, IDBI bank will provide an FD receipt.

Documents required to Open IDBI Bank FD

The documents that one requires to invest in IDBI FDs are

• FD application form
• Photographs of the depositor and the nominee (if any)
• PAN Card
• ID proof (PAN Card, Aadhar Card, Driving Licence, and Passport)
• Address proof (Aadhar Card, Electricity Bill, Telephone bill)
• Age proof (Birth certificate, PAN Card, matriculation certificate).

Eligibility to Open IDBI Bank FD

The following are eligible to open IDBI bank FD:

• Resident Indians
• Partnership firms
• Private or public limited company
• Hindu Undivided Family(HUF)
• Trusts

Does IDBI Bank offer Recurring Deposits?

IDBI Bank offers recurring deposits to its depositors. IDBI Bank recurring deposits have a minimum tenure of one year and a maximum tenure of 10 years. Depositors can open an RD account either by going to the IDBI Bank branch or online using internet banking. The interest rate for regular citizens on IDBI Bank RDs is in the range of 4.9% to 5.25%, and for senior citizens, it is in the range of 5.4% to 5.75%.

How many years will FD double in IDBI Bank?

To know in how many years IDBI Bank FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate, and the result will be the number of years IDBI Bank FD will double. For example, for a tenure of 5, the IDBI Bank FD interest rate is 5.1%. An investor can double the investment amount by investing for this tenure in IDBI Bank FD in 14.11 years (72/5.1).

Is FD interest taxable?

Only investment in IDBI Bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other IDBI Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from IDBI Bank FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from IDBI Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the IDBI Bank, then the TDS rate will be 20%.

What is the FD rate in IDBI Bank?

IDBI Bank FD rates range between 2.9% and 5.1% for regular citizens and between 3.4% and 5.6% for senior citizens. Moreover, IDBI Bank offers an additional 0.5% interest to senior citizens on their FDs. IDBI Bank pays interest as per the choice of the investor. The investor can choose from monthly, quarterly, half-yearly, yearly intervals, or at maturity.

Frequently Asked Questions