Citibank Fixed Deposit

Citibank began its operations in 1902 in Kolkata. This foreign bank has played a significant role in shaping the Indian financial markets by establishing market intermediaries. Moreover, Citibank offers various fixed deposits for different tenures with attractive interest rates. Furthermore, one can invest in Citibank fixed  deposits with an amount as low as INR 1,000. In this article, we have covered Citibank FD and its interest rates in detail.

Types of Fixed Deposit Schemes Offered by Citibank

• Fixed or Term Deposits
• Multi or Flexible Deposits
• Senior Citizen Deposits
• Tax Saver Deposits

Fixed or Term Deposits

A Fixed Deposit is an investment scheme where the money is deposited for a fixed period. Also, FD rates do not fluctuate.

• Minimum Tenure: 7 days
• Minimum Deposit Amount: INR 1,000
• Interest Payout: Quarterly compound interest or simple interest
• Overdraft facility: Up to 90% of the deposit amount for current account holders

Multi or Flexible Deposits

The Citibank Multi Deposit scheme offers attractive interest rates, and one can still hold the funds as part of the withdrawal balance.

• Minimum Tenure: 7 days
• Minimum Deposit Amount: INR 1,000
• Interest Payout: Quarterly compound interest or simple interest
• Withdrawals: In multiples of INR 1,000 without having to break the entire deposit.

Senior Citizen Deposits

The scheme earns additional interest of 50 basis points per annum on Citibank fixed deposit below INR 2 Crore. The deposits are linked to the Savings Account. Also, it gives the depositor the benefit of a Higher Net Relationship Value (NAV).

• Minimum Tenure: 7 days
• Minimum Deposit Amount: INR 1,000

Tax Saver Deposits

The Citibank Tax Saver Deposit Scheme offers tax benefits on deposits up to INR 1,50,000 in a financial year. Moreover, the depositors can claim tax deductions under Section 80C of the Income Tax Act.

• Lock-in period: 5 years
• Minimum Deposit Amount: INR 1,000
• Maximum Deposit Amount: INR 1,50,000 per annum
• Interest Payout: Quarterly compound interest or simple interest

Key Features of Citibank Fixed Deposit

Following are the key features of Citibank fixed deposits:

• Tenure: The Citibank fixed deposit tenure ranges between 7 days to 5 years. Once invested, one cannot change the tenure of an existing fixed deposit account. But, one can opt for premature withdrawal. Also, investors can close the existing Citibank fixed deposit account and start a new FD with the desired tenure.
• Minimum and Maximum Deposit Amount: The minimum amount of investment in Citibank Fixed Deposit is INR 1,000. There is no maximum limit on investment. However, for Citibank tax saving FDs, the maximum amount of investment is INR 1,50,000 per annum.
• Preferential Interest Rates: Citibank offers preferential interest rates for senior citizens. Senior citizens are privileged to get an additional 0.5% on their FD investments. Also, the Citibank FD interest rates range between 3.25%-4.25% for senior citizens.

Citibank Fixed Deposit Eligibility

To open a fixed deposit account with Citibank, one has to be eligible. Following is the eligibility criteria.

Individuals, including minors, senior citizens, and joint account holders

• Sole proprietors
• Partnership firms
• Companies
• Educational institutions, societies, trusts, clubs, associations, religious institutions, etc
• HUFs
• Blind and illiterate individuals

Documents required

To open an FD account with Citibank, one needs the following documents.

• Identity proof (PAN Card, Passport, Aadhar Card, Voter ID, Driving License)
• Address proof (Aadhar Card, Passport, Utility bills)
• Age proof (Birth Certificate, Service Discharge Certificate, PAN Card)

Additional Payments

It is not possible to deposit any additional amount in an existing Citibank fixed deposit. However, one can always invest in a fresh Citibank FD with the additional amount.

Tax and TDS

Investment in Citibank Tax Saver Fixed Deposit qualifies for tax deduction up to INR 1.5 lakhs under Section 80C of the Income Tax Act, 1961. Investors can claim tax benefits while filing their income tax returns. All other Citibank FDs do not qualify for tax saving.

The interest income that one earns from Citibank FDs is taxable as per their respective income tax slab rates. Moreover, Citibank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% rate is applicable when PAN details are submitted; else the bank cuts TDS at 20%.

One can determine whether Citibank FD’s interest income is above or below the TDS threshold limit using Citibank FD calculator. One can also estimate their income tax liability using an Income Tax Calculator. Scripbox’s Income Tax Calculator is available online and is free to use.

Safety

Under the Deposit Insurance Scheme of RBI, DICGC insures all Citibank deposits up to INR 5,00,000.

Premature withdrawal

Citibank allows premature withdrawal of fixed deposits. However, they will charge a penalty for the same. Investors will receive interest on their fixed deposits until the withdrawal date, but after the bank deducts a penalty of 1%.

Nomination Facility

Depositors can nominate beneficiaries for their Citibank FDs.

Auto-Renewal

Citibank offers an auto-renewal facility to depositors for their fixed deposits.

Convenience

Opening and managing Citibank FD investments is easy and convenient through their online portal.

Loan against FD and Overdraft

Citibank allows investors to take a loan against fixed deposits. This will help investors to meet their liquidity requirements. Also, investors need not go through the hassle of applying for a fresh loan. Moreover, Citibank allows its investors to take a loan up to 90% of the deposit amount.

Investors can take loans such as loan against property (home loan), business loans, education loans, etc., against Citibank FD. Also, one can calculate their loan EMI using the loan EMI calculator. The loan EMI calculator also works as a personal loan EMI calculator. Moreover, it also works as a home loan calculator and car loan calculator. The investor can also use the EMI calculator in multiple scenarios by changing the variables like personal loan interest rate. They can also tweak the home loan interest rate and car loan interest rate.

Pan Card

A PAN card isn’t mandatory to open a Citibank FD account. However, there are a few implications for this. Citibank will cut TDS at 20% instead of 10%. Also, Citibank will not issue a TDS certificate. Moreover, the exemption certificates form 15G/15H, will be invalid.

Requirement of savings account

One would need a Citibank account to invest in Citibank FDs.

What are the Tax Implications of Fixed Deposits?

Investment in Citibank tax-saving fixed deposits qualifies for tax exemption under Section 80C of the Income Tax Act. Investors can claim the tax benefits while filing their income tax returns. Also, apart from that, investment in any of the other Citibank FDs doesn’t qualify for tax saving. 

The interest income that one earns on Citibank FDs is taxable as per the individual’s income tax slab rates. Moreover, Citibank cuts 10% as TDS on interest income above INR 40,000 (INR 50,000 for senior citizens) per annum. In case the investor doesn’t provide the PAN details, then the applicable TDS rate is 20%. 

Also, to know whether the interest income one might earn is above or below the TDS threshold limit, one can use the Citibank FD calculator available online. Also, using the Income Tax Calculator one can estimate their tax liability. Scripbox’s Income Tax Calculator helps in determining one’s tax liability. Moreover, it is free to use and is available online.

Can I open an FD account without holding a bank account with Citibank?

One would require a Citibank savings account to invest in their FDs. To open a fixed deposit account in Citibank, one needs to submit the following documents:
1. Identity proof (PAN Card, Passport, Aadhar Card, Voter ID, Driving License)
2. Address proof (Aadhar Card, Passport, Utility bills)
3. Age proof (Birth Certificate, Service Discharge Certificate, PAN Card)

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