IDFC Bank Fixed Deposit

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

IDFC Bank Fixed deposit schemes

Following are the types of IDFC Bank fixed deposit schemes:

• Regular Fixed Deposit Account
• Senior Citizen Fixed Deposit Account
• Tax Saver Fixed Deposit Account
• NRE Fixed Deposit Account
• NRO Fixed Deposit Account

IDFC Bank Regular Fixed Deposit Account

The regular fixed deposit account is for individuals between 18 years and 60 years.

• Minimum Deposit Amount: INR 10,000
• Maximum Deposit Amount: No limit
• Minimum Deposit Tenure: 7 days
• Maximum Deposit Tenure: 10 years
• Premature withdrawal: Permitted. However, the bank charges a 1% penalty for all premature withdrawals.

IDFC Bank Senior Citizen Fixed Deposit Account

The senior citizen FD account can be opened by individuals above the age of 60 years. The interest rates for these accounts is higher than other FDs. The interest rate is 0.5% higher than the regular ones. Also, the senior citizen depositors can opt for a monthly interest payout option. This helps them generate a monthly income to meet their expenses.

• Minimum Deposit Amount: INR 10,000
• Maximum Deposit Amount: No limit
• Minimum Deposit Tenure: 7 days
• Maximum Deposit Tenure: 10 years
• Premature withdrawal: Permitted. However, the bank charges a 1% penalty for all premature withdrawals.

IDFC Bank Tax Saver Fixed Deposit Account

The deposits under this scheme qualify for tax savings under Section 80C of the Income Tax Act. Deposits up to INR 1,50,000 per annum qualify for the deduction.

• Maximum Deposit Amount: INR 1,50,000
• Lock-in period: 5 years
• Premature withdrawal: No partial or premature withdrawals

IDFC Bank NRE Fixed Deposit Account

Two or more NRIs can open the Non-Resident External (NRE) FD account. One can convert the foreign currency that they earn outside India into Indian currency by depositing it in this account. Also, the principal amount, as well as the interest earned, is completely repatriable. Furthermore, the interest income is tax-exempt under Section 10(4) of the Income Tax Act.

• Minimum Deposit Amount: INR 10,000
• Maximum Deposit Amount: No limit
• Minimum Deposit Tenure: 1 year
• Maximum Deposit Tenure: 10 years
• Interest: Interest computation is done at a fixed rate. Depositors can either choose a simple interest or compound interest. With simple interest, the interest payouts are done on a monthly or quarterly basis. On the other hand, for compound interest, the interest gets compounded every 90 days and is paid on maturity.

IDFC Bank NRO Fixed Deposit Account

Non-Resident Indian (NRI), Person of Indian Origin (PIO) and Overseas Citizen of India (OCI) are eligible to open the NRO FD account. The income one earns in INR can be deposited into this account. Also, these accounts can be jointly held with an Indian resident. However, the resident has to be a relative as specified under Section 6 of the Companies Act, 1956.

• Minimum Deposit Amount: INR 10,000
• Maximum Deposit Amount: No limit
• Minimum Deposit Tenure: 7 days
• Maximum Deposit Tenure: 10 years
• Interest: Interest computation is done at a fixed rate. For deposits greater than six months, the depositor can either choose a simple interest or compound interest. With simple interest, the interest payouts are done on a monthly or quarterly basis. On the other hand, for compound interest, the interest gets compounded every 90 days and is paid on maturity.

Key Features of IDFC First Bank Fixed Deposit Schemes

Tenure: The tenure of an IDFC First Bank FD ranges from seven days to ten years. Also, one cannot change the tenure of their IDFC First Bank FD once it has commenced.

Minimum and maximum investment: The minimum investment in IDFC Bank FD is INR 10,000. However, there is no limit on the maximum amount of investment except for IDFC First Bank tax saving FD, which is INR 1,50,000.

IDFC Bank FD rates: IDFC Bank FD rates range between 3.0% and 7.75% for regular citizens and between 3.5% and 8.25% for senior citizens. Moreover, IDFC Bank offers an additional 0.5% interest to senior citizens on their FDs. IDFC Bank pays interest every month or quarter as per the choice of the investor.

Premature withdrawal: All IDFC Bank FDs can be withdrawn prematurely except for the tax-saving FD. The bank charges a penalty for early withdrawal. However, the penalty varies as per the terms and conditions of IDFC Bank.

Loan against FD: IDFC First Bank offers loans against their FDs. Investors can get up to 90% of the deposit amount as a loan against their IDFC First Bank FD investment. Also, the interest rate of the loan will be in the range of 3.75% to 7%. Moreover, the tenure of the loan is limited to the tenure of the IDFC First Bank FD.

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

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

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

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

How to open an IDFC Bank FD deposit account?

One can open an IDFC 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 IDFC Bank FD account through internet banking:

• Login to the IDFC Bank NetBanking account.
• In the main menu, select the ‘Fixed Deposit’ option and choose the type of deposit account.
• Fill in all the necessary details, nominee information and maturity instructions.
• Click on ‘Submit’ to complete the account opening process.

Through Mobile App

IDFC Bank App

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

• Download the IDFC Bank App and log in.
• In the main menu, select the ‘Fixed Deposit’ option and choose the type of deposit account.
• Fill in all the necessary details, nominee information and maturity instructions.
• Click on ‘Submit’ to complete the account opening process.

Offline IDFC Bank FD Opening

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

Documents required to Open an IDFC Bank FD

Following are the documents required to open an FD account with IDFC Bank:

• Proof of identity (Passport, PAN Card, driving license, Aadhar Card, and Voter ID)
• Address proof (Bank statement with cheque, Aadhar card, passport)
• Proof of date of birth (birth certificate, discharge certificate, PAN card, Aadhar card)

Eligibility to Open an IDFC Bank FD

Following is the eligibility criteria to open an IDBI Bank FD

• Individuals
• Sole proprietorship and joint ventures
• Hindu Undivided Family (HUF)
• Partnership firms, including Limited Liability Partnership (LLP)
• Private/public limited companies, including the one-person company
• Trust, society, and association
• Government and quasi-government institutions, including a municipal corporation, defence establishment

Does IDFC First Bank offer Recurring Deposits?

IDFC Bank offers recurring deposits to its depositors. IDFC Bank recurring deposits have a minimum tenure of six months and thereafter in multiples of 3 months. The maximum tenure of IDFC Bank RDs is ten years. Depositors can open an RD account either by going to the IDFC First Bank branch or online using internet banking.

Is FD interest taxable?

Only investment in IDFC Bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other IDFC Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from IDFC 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 IDFC 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 IDFC Bank, then the TDS rate will be 20%.