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IDFC Bank First FD schemes offer competitive interest rates to its investors. Their FDs are quite flexible in terms of tenure. Also, they do not charge any penalty on early withdrawal by senior citizens. One need not have an IDFC bank account to invest in their fixed deposit. To invest in IDFC First FD, one can either visit the branch physically or can invest online on IDFC bank’s website.

IDFC Bank FD Rates 2021

The table shows IDFC First Bank FD rates for different tenures for regular and senior citizens.

IDFC First Bank FD rates are higher than its savings account rates. Moreover, they offer an additional 0.5% interest rate for senior citizens. The IDFC fixed deposit interest rates vary between 2.75% and 6% for regular citizens. And between 3.25% and 6.5% for senior citizens for a tenure of 7 days to 10 years. The highest IDFC bank FD rate is 6% for a regular investor for the tenure of 500 days. For the same tenure, the senior citizen FD rate is 6.50%. 

TenureRegular Fixed Deposit RatesSenior Citizen Fixed Deposit Rates
7 days to 14 days2.75%3.25%
15 days to 29 days3.00%3.50%
30 days to 45 days3.50%4.00%
46 days to 90 days4.00%4.50%
91 days to 180 days4.50%5.00%
181 days to 364 days5.25%5.75%
500 days6.00%6.50%
501 days to 2 years5.75%6.25%
1 year to 499 days5.75%6.25%
2 years 1 day to 5 years5.75%6.25%
5 years 1 day to 10 years5.75%6.25%
Note: IDFC First Bank revises Fixed Deposits rates periodically

Key Features of IDFC Bank Fixed Deposit

IDFC First Bank’s Fixed Deposits lets the idle funds work for the depositors. It provides the highest fixed deposit interest rates in the market. Following are the key features of IDFC bank fixed deposit account:

Tenure

The term deposit tenure ranges between 7 days to 10 years. Once the FD tenure has commenced, one cannot change the tenure of an FD. However, one can choose to opt for premature withdrawal and invest in a fresh FD with the desired tenure.

Minimum and Maximum Deposit Amount

The minimum amount to open an FD with IDFC Bank is INR 10,000.  There is no limit on the maximum deposit amount. One doesn’t necessarily require IDFC savings account for investing in IDFC FD.

IDFC First Bank FD Interest Rate

IDFC Bank FD offers interest rates in the range of 2.75% p.a to 6.00% p.a.

Preferential Interest Rates for Senior Citizens

IDFC bank offers preferential fixed deposit interest rates to senior citizen depositors. The interest rates range between 3.25% to 6.50% for senior citizen depositors.

Eligibility

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

Documents Required

  • 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)

Additional Payments

One cannot deposit an additional amount in their FD account after the FD commences. Instead, they can open a new FD account with the additional investment amount for the desired tenure.

Tax and TDS

Investment in IDFC tax-saving FDs qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. No other IDFC FD schemes qualify for a tax deduction. Interest on FDs is taxable as per investors individual tax slab. Furthermore, there is a TDS charge of 10% (20% if PAN is not submitted) on interest income above INR 40,000 (INR 50,000 in case of senior citizens).

To know whether the interest income is exceeding the TDS threshold limit, one can use Scripbox’s FD Calculator available online. One can use the Income Tax Calculator for estimating their tax liability. Scripbox Income Tax Calculator is free to use and available online.

Safety

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

Premature Withdrawal

IDFC First Bank allows premature withdrawal of the FD account. However, this comes with a lower interest rate. The penalty charges for the same change from time to time. They also vary with different FD schemes provided by the bank. However, senior citizens can prematurely withdraw without any penalty.

Nomination Facility

Depositors can nominate beneficiaries for their IDFC Bank FDs.

Auto-Renewal

IDFC Bank provides auto-renewal facility for the deposits

Convenience

One can open and manage their IDFC First Bank FD investments online at their convenience.

Loan against FD

IDFC First Bank offers loans against their FD. Investors can get up to 90% of the deposit amount as a loan for a rate of 3.75%-7% based on the tenure of the FD. IDFC bank doesn’t give a loan on any other bank FDs except for theirs.

Loans such as loans against property (home loan), business loans, education loans, etc., can be taken against an FD. Investors can calculate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a home loan calculator. It also works as a personal loan EMI calculator and a car loan calculator. They can also use this EMI calculator in multiple scenarios by changing the home loan interest rate. They can also change the personal loan interest rate and car loan interest rate.

PAN Card

PAN card isn’t mandatory to invest in IDFC First Bank FD. However, there are certain implications for the same. The TDS will be cut at 20% instead of 10%. The bank will not issue any TDS certificate. The exemption certificates Form 15G/15H, will be invalid.

Requirement of Savings account

One doesn’t necessarily require an IDFC savings account for investing in IDFC FD.

Types of Fixed Deposit Schemes offered by IDFC First Bank

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

Types of Fixed Deposit Schemes: In Detail

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 1% penalty for all premature withdrawals.

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 1% penalty for all premature withdrawals.

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

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 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.

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 in 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.

Does IDFC First Bank offer Recurring Deposits?

Yes, IDFC First Bank offers recurring deposits to its depositors. The recurring deposits have a minimum tenure of 6 months and a maximum tenure of 10 years. Depositors can open an RD account with IDFC First Bank either by going to the bank branch or online using internet banking. Below are the IDFC First Bank RD interest rates for different tenures.

TenureGeneral RatesSenior Citizen Rates
6 months6.75%7.25%
9 months7.00%7.50%
12 months7.25%7.75%
to 15 months7.25%7.75%
18 months7.25%7.75%
21 months7.25%7.75%
24 months7.25%7.75%
to 27 months7.25%7.75%
36 months7.25%7.75%
39 months7.20%7.70%
48 months7.20%7.70%
60 months7.20%7.70%
90 months7.20%7.70%
120 months7.00%7.50%
Note: IDFC Bank revises RD interest rates periodically