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IDBI Bank is a public sector bank that offers different FD schemes for multiple purposes. The bank guarantees the payment of interest on their FDs. IDBI FDs have interest rates varying from 2.9% to 5.1%. The bank offers additional interest of 0.5% to senior citizens. The bank has a lower minimum deposit amount and flexible tenures. It also offers premature withdrawal and loan against FDs. In this article, we have covered about IDBI Bank FDs in detail.

IDBI FD Rates 2021

Below is the table showing IDBI Bank FD rates for different tenures.

IDBI Bank fixed deposit interest rates range between 2.9%-5.1% for regular citizens and 3.4% -5.6% for senior citizens with tenure varying between 7 days and 20 years. The FD rates are higher than their saving account rates. Moreover, the senior citizens FD rate is higher than the regular citizens rate by 0.5%. Investors can opt for receiving interest regularly through monthly, quarterly or annual intervals. The interest is compounded quarterly. 

The highest FD rate for IDBI bank is 5.10% for a regular investor for the tenure of 1-10 years. For the same tenure, the senior citizen FD rate is 5.60%.  Returns from IDBI fixed deposits can be calculated using the IDBI Bank fixed deposit calculator.

TenureRegular FD Interest RatesSenior Citizen FD Interest Rates
7 days to 14 days2.90%3.40%
15 days to 30 days2.90%3.40%
31 days to 45 days3.00%3.50%
46 days to 60 days3.25%3.75%
61 days to 90 days3.25%3.75%
91 days to 6 months3.90%4.40%
271 days to 364 days4.40%4.90%
6 months 1 day to 270 days4.40%4.90%
1 year5.00%5.50%
1 year 1 day to 2 years5.10%5.60%
2 years 1 day to 2 years 364 days5.10%5.60%
3 years 1 day to 4 years 364 days5.10%5.60%
5 years5.10%5.60%
5 years 1 day to 7 years5.10%5.60%
7 years 1 day to 10 years5.10%5.60%
10 years 1 day to 20 years4.80%5.30%
Note: Interest on IDBI Fixed Deposits are revised periodically

Key Features of IDBI Bank Fixed Deposit

IDBI Bank fixed deposit schemes offer better returns than a savings bank account. Following are the key features of IDBI bank fixed deposits:

Tenure

The IDBI bank fixed deposit tenure ranges between 7 days to 10 years. Once invested, one cannot change the tenure of IDBI Bank FD investment. However, one can opt for premature withdrawal. And investors can close the existing IDBI Bank FD and start a new FD with the desired tenure.

Minimum and Maximum Deposit Amount

The minimum amount of investment in IDBI Bank Fixed Deposit is INR 10,000. There is no maximum limit on investment. However, for tax saving FDs, the maximum amount of investment is INR 1,50,000.

IDBI Bank FD Interest Rate

IDBI FD offers interest rates in the range of 2.90% p.a to 5.10% p.a.

Preferential Interest Rates

The bank offers preferential interest rates for senior citizen depositors. The interest rates range between 3.40% to 5.60% for senior citizen depositors.

Eligibility

Resident Indians, partnership firms, private or public limited company, Hindu Undivided Family(HUF) and trusts are eligible to invest in IDBI FDs.

Documents required

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) and age proof (Birth certificate, PAN Card, matriculation certificate).

Additional Payments

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

Tax and TDS

Investment in IDBI Bank Suvidha Tax Saving Fixed Deposit qualifies for tax saving under Section 80C of the Income Tax Act, 1961. Depositors can claim tax benefits while filing tax returns. All other IDBI Bank FDs do not qualify for tax saving.

The interest that one earns on their IDBI Bank FD investments is taxable. The tax rate varies as per the depositor’s income tax slab rates. Furthermore, IDBI bank deducts a TDS of 10% in case the interest income exceeds INR 40,0000. For senior citizens, the TDS is deducted when the interest exceeds INR 50,000. Moreover, the TDS of 10% is applicable only when the depositor submits the PAN card details to the bank. If the PAN details aren’t submitted, then the TDS rate is 20%.

To determine if the interest income from IDBI Bank FD is above or below the TDS threshold limit, one can use a Scripbox’s fixed deposit calculator available online. Also, to estimate their tax liability one can use the Income Tax Calculator. Scripbox’s online Income Tax Calculator is free to use and helps in determining tax liability.

Safety

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

Premature withdrawal

IDBI allows premature withdrawal of the deposit amount at a certain penalty. The penalty is in the form of interest. Hence, when an investor withdraws their FD deposit prematurely, they will get lesser interest than the contracted rate.

Nomination Facility

Depositors can nominate beneficiaries for their IDBI Bank FDs.

Auto-Renewal

IDBI Bank offers an auto-renewal facility for the deposits.

Convenience

One can open an IDBI bank FD account online through Net banking and mobile app or by visiting the nearest bank branch.

Loan against FD and Overdraft

IDBI Bank offers loans against FD and overdraft facilities. It helps the fixed deposit holders to meet their liquidity requirements without breaking the deposit. Investors can get up to 90% of the deposit amount as loan. The interest will be 1-2% higher than the FD interest rate, and the loan’s tenure is restricted to the tenure of the FD.

Investors can take loans such as loan against property (home loan), education loans, business loans, etc., against IDBI Bank FD. One can calculate the loan EMI using the loan EMI calculator. The loan EMI calculator works as a personal loan EMI calculator, 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, home loan interest rate and car loan interest rate.

Pan Card

A PAN card isn’t mandatory to open an IDBI Bank FD account. Since PAN isn’t mandatory, there are a few implications for the same. The TDS will be cut at 20%, as per the regulations of section 206AA, instead of the regular 10%. No TDS certificate will be issued by IDBI bank. And all exemption certificates, including Form 15G/15H, will be invalid.

Requirement of savings account

Individuals should have an IDBI bank account to open a fixed deposit account. 

Types of Fixed Deposit Schemes offered by IDBI Bank

Following are the types of IDBI Bank FD schemes:

Freedom Deposit

Suvidha Tax Saving Fixed Deposit

Systematic Savings Plan

Floating Rate Term Deposit

Types of Fixed Deposit Schemes: In Detail

Freedom Deposit

The freedom deposit scheme offers safety, credibility, liquidity at attractive interest rates. The interest rates are among the highest in the banking sector. Following are the features of the scheme:

  • Tenure: 15 days to 20 years
  • Deposit Amount: Minimum deposit INR 10,000
  • Interest Compounding and Payout:
  • Monthly compounding and paid monthly
  • Interest is computed at simple interest and paid annually.
  • Quarterly compounding where interest is paid on maturity
  • Premature Withdrawal: Available with no penalty
  • Overdraft Facility: Available up to 90% of the deposit amount
  • Sweep in Facility and Auto-renewal facility: Available

Suvidha Tax Saving Fixed Deposit

The Suvidha Tax Saving Fixed Deposit scheme offers dual benefits of tax exemption and higher returns on investment. The deposit amount under the scheme qualifies for tax deduction under Section 80C of the Income Tax Act. Following are the features of the scheme:

  • Lock-in period: 5 years
  • Investment Amount: Maximum investment amount INR 1,50,000
  • Loan against FD: Available
  • Payout: Lump sum payout after five years

Systematic Savings Plan

Systematic Savings Plan (SSP) helps in adding savings at the depositor’s convenience. One can save any fixed amount every month. Following are the features of the scheme:

  • Tenure: 1 year to 10 years
  • Minimum Deposit Amount: INR 100 per month
  • Maximum Deposit Amount: INR 2 crore per month

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. Through the scheme, the depositors can take advantage of the interest rate changes without having to close or rebook the scheme. Following are the features of the scheme:

  • Tenure: 1 year to 20 years
  • Minimum Deposit Amount: INR 10,000
  • Maximum Deposit Amount: INR 1 Crore
  • Interest: Reset every quarter and paid quarterly
  • Premature Withdrawal: Available, however after one year
  • Loan Facility: Depositors can avail loan up to 90% of the deposit amount

Does IDBI Bank offer Recurring Deposits?

IDBI Bank’s Systematic Savings Plan is the same as a recurring deposit. The scheme enables depositors to save a fixed amount every month.

TenureGeneral RatesSenior Citizen Rates
1 year5.00%5.50%
> 1 year – 2 years5.10%5.60%
>2 years to < 3 years5.10%5.60%
3 years to < 5 years5.10%5.60%
5 years5.10%5.60%
> 5 years – 7 years5.10%5.60%
>7 years – 10 years5.10%5.60%
Note: IDBI Bank revises RD interest rates periodically