Established in 1964, IDBI Bank is a relatively newer financial institution in India compared to its competitors. Life Insurance Corporation of India holds a majority stake of the bank at present. It operates around 1,900 branches and approximately 3,700 ATMs across India.
Bank account holders operating savings account in IDBI often migrate to better instruments of investment. For instance, IDBI fixed deposit plans are safe and generally provide better returns than a standard savings account.
IDBI Bank FD Rates
Investors can earn between 3.50% and 6.45% interest with an IDBI fixed deposit ranging from 7 days to 365 days. Senior citizens, on the other hand, are liable to receive an interest ranging between 4.00% and 6.95% per annum in the same period.
For tenures ranging between 10 and 20 years, the interest rate payable is 6.00% for non-senior citizens and 6.50% for senior citizen investors.
|Tenure||Non-senior citizen and NRO FD (%)||Senior Citizen FD (%)|
Types of IDBI Bank FD Schemes
Investors can choose from the following IDBI fixed deposit scheme.
- IDBI Freedom Deposit – Offering a flexible tenure for investment, this scheme’s minimum maturity tenure is 15 days. The maximum tenure is 20 years. The investment cannot be lower than Rs. 10,000.
- IDBI Floating Rate Term Deposit – The interest rate applicable for this deposit scheme is not constant. The tenure is between 1 year and 20 years. Investments can range from Rs. 10,000 to Rs. 1 Crore.
- IDBI Suvidha Tax Saving Deposit – Allows tax deductions on investments of up to Rs. 1.5 Lakh. This IDBI Bank FD has a mandatory lock-in tenure of 5 years. Premature withdrawal and loan against FD are unavailable on these schemes.
Benefits of Choosing IDBI Bank FD
Apart from the better interest on the funds deposited, here are the several advantages of investing in IDBI Bank fixed deposit –
- Loan against FD facility up to 90% available.
- Extra interest of 0.50% for senior citizen investors.
- Auto-renewal system available for investments.
- Several schemes to suit individualistic needs.
- Attractive and competitive rates of interest.
Eligibility Criteria for IDBI Bank FD
The following groups are eligible for initiating fixed deposit investments in IDBI Bank –
- Individuals and joint account holders.
- NRIs through NRE and NRO accounts.
- Hindu Undivided Family or HUF.
- Senior citizens.
- Sole proprietorship and partnerships.
- Educational or charitable institutions.
Documents Required for IDBI Bank FD
Furnishing proper identity and address proof is mandatory for availing IDBI Bank FD. Minors and senior citizens also need to provide proof of age.
Here is a quick look at all documents necessary –
- Application form.
- Photo identity proof, which may include Voter ID, PAN card, Aadhaar card, driving license, etc.
- Address proof document, which can include utility bills, driving license, Aadhaar card and more.
- Proof of age (birth certificate, PAN card, matriculation certificate and more).
- Passport size photographs.
- PAN card.
Premature Withdrawal Terms and Conditions
Premature withdrawal is unavailable until the IDBI fixed deposit completes one year. After one year, removal of the deposit before maturity results in a deduction of 1% on the contracted interest rate. This facility is unavailable for Suvidha Tax Saving Deposit.
Special Forms to Fill
Non-senior citizen individuals earning below Rs. 40,000 from interests in a financial year are liable to avail tax exemptions on such income. These individuals need to submit Form 15G to receive such tax relief.
Senior citizen individuals, on the other hand, can avail tax exemptions for earnings of up to Rs. 50,000 in an FY. They should fill Form 15H in this case.
Loan Against IDBI Bank FD
Borrowing against your IDBI Bank fixed deposit is allowed for up to 90% of the outstanding amount. The rate of interest on such a loan ranges between 4.50% and 7.45%, which is much lower than most other loan options in the market today.
- What is the maximum interest that an investor can earn from an IDBI FD?
IDBI Bank FD offer regular investors up to 6.45% on their deposits. For senior citizens, the maximum rate is 6.95% per annum.
- Are senior citizens liable to receive additional interest on their FD investments?
Yes. Investors aged over 60 years are eligible for an extra interest income of 0.50% per year on an IDBI fixed deposit.
- What is the tenure range for IDBI FD investments?
Depending on the FD scheme selected and the preference of the investor, the maturity period for investment can be between 7 days and 20 years.
- Is it possible to operate IDBI FD account without PAN details?
Investing in FDs without PAN details is possible, but not recommended. Doing so results in the following implications.
- TDS will be applicable at a rate of 20%, as opposed to 10% under normal circumstances.
- Income Tax department does not credit TDS.
- A TDS certificate is not generated.
- Form 15G/15H becomes invalid.
- Does IDBI offer FD investment facilities online?
IDBI online FD facilities are available. Investors can apply for investment online. The final step involves interaction with bank representatives.
- What is the charge applicable for early withdrawals in IDBI Bank FDs?
When investors remove their investments from the account before it reaches maturity, IDBI Bank charges a penalty for the premature withdrawal in the form of a 1% interest reduction on the FD.
- Who is eligible to invest in IDBI Bank FDs?
Residents, HUF members, firms, NRIs and minors are eligible for IDBI fixed deposit in the bank.
- Can additional money be deposited in the FD account?
No. Fixed deposit accounts do not allow investors to deposit additional sums after the investment period starts.
- Can investors change the tenure for FD investment?
No. Changing or altering the maturity period for an existing FD account is not possible. Investors can, instead, start another investment in its place with the preferred tenure.