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IDFC First Bank is one of the most promising financial institutions emerging in India, with its headquarters in Mumbai. The banking institution received its Universal Banking Licence from the RBI in 2015 and is popular for its corporate and commercial banking services.

Notably, a fixed deposit scheme is among the most popular financial products extended by the bank. Typically, it’s the IDFC Bank FD rates and other user-centric features that work in favour of the deposit scheme and its holders.

On that note, following is an elaboration of the prevailing interest and other noteworthy components of this savings instrument.

Factors that Impact IDFC FD Rates

Several external and internal factors are responsible for influencing the IDFC First Bank FD rates. The most significant ones are elucidated below –

  • Deposit amount

Usually, a high deposit amount enables deposit holders to generate substantial earnings. It is because a higher FD amount attracts a higher rate of interest.

  • Deposit tenure

Besides deposit amount, individuals must also note the impact that an FD’s term has on the IDFC Bank FD rates. Typically, a longer tenure attracts a higher rate of interest. It also proves useful in building a robust corpus even with small savings.

Bank NameTime Period 
IDFC First Bank1 Year 4 Months
IDFC First Bank1 Year
IDFC First Bank9 Months
IDFC First Bank6 Months
IDFC First Bank3 Months
  • Customer type

The category of customer also has a strong influence on the IDFC bank rate of interest. It is because the terms of service and rate of interest offered to customers from one category differ from that of another. For instance, the IDFC Bank FD rates for senior citizens are 0.50% higher than the rates extended to other customer types.

  • Economic factors and monetary policies

Economic forces and existing monetary policies play a crucial role when it comes to determining the FD interest rates. For example, any change made to repo rates has a direct impact on FD rates – when the repo rate is slashed, the rate of interest offered to FD holders also decreases and vice versa.

Individuals who plan on opening an IDFC First Bank FD account may consider using an FD calculator online to understand the impact of these vital factors better. Such an endeavour will also come in handy for choosing a suitable combination of tenure and deposit amount.

IDFC First Bank FD Interest Rates

This table offers a valuable insight into the IDFC Bank FD interest rates and helps to make an informed comparison.

Investment Tenure betweenIDFC Bank FD Rates for Senior Citizens IDFC Bank FD Rates for Regular Customers 
7 days and 14 days3.50%3.00%
15 days and 29 days4.50%4.00%
30 days and 45 days5.50%5.00%
46 days and 90 days6.50%6.00%
91 days and 180 days6.75%6.25%
181 days up to less than a year7.00%6.50%
1 year and 499 days7.25%6.75%
500 days7.50%7.00%
501 days and 10 years7.25%6.75%

Note: The FD interest rates mentioned above apply to a fixed deposit amount of less than Rs.2 crore.

Eligibility Criteria for IDFC First Bank FD

Entities that come under any of these categories are deemed eligible to open an IDFC First FD –

  • Individuals
  • Sole proprietorship
  • Partnership firm
  • Hindu undivided family
  • Private/ public limited company
  • Limited liability partnership
  • Joint ventures
  • A one individual company
  • Embassy offices in India
  • Trust, association, society, etc.

Existing customers do not need to submit any additional document to open an IDFC Bank FD account. However, new customers need documents including proof of income, identity and address along with recent passport-sized photographs to start an FD account.

Types of IDFC Bank Fixed Deposit

IDFC First Bank extends a regular Fixed Deposit Scheme that allows individuals to deposit a portion of their savings to generate income. Some of the most noteworthy features that accompany IDFC Bank FD include –

  • The interest in this FD account is compounded quarterly.
  • Senior citizens do not have to pay a penalty on an early withdrawal.
  • It extends auto-renewal facility.
  • It allows loan and nomination facilities.

How is Interest Computed on IDFC Bank FD?

One can compute interest on IDFC Bank FD by implementing this particular formula –

A = P (1 + r/n) ^ nt

In this formula,

  • A is the maturity value
  • P is the principal deposit
  • r is the rate of interest
  • n is the compounding frequency
  • t is the term of the deposit

Example:

Rakesh opens an IDFC First Bank FD with Rs. 1 lakh for 120 days at the rate of 6.45% compounded annually. With the given formula,

A = P (1 + r/n) ^ nt

= Rs. [100000 (1+6.45/1) ^ 1×120]

= Rs. 1,02,129

Therefore, on maturity, Rakesh will receive Rs. 1,02,129 from his IDFC FD account and will accrue Rs. 2129 as interest.

TDS on IDFC First Bank FD

The interest accrued on an IDFC Bank FD account is subject to TDS at the rate of 10% if the accumulated interest amount exceeds Rs. 40,000 in a given fiscal year. However, in case of senior citizens, the exemption limit is Rs. 50,000.

It must be noted that FD holders have the option to claim tax exemption on their income from this scheme. To achieve the same, FD holders need to declare that their tax on total income earned is zero by submitting Form 15G. Senior citizens can claim the same by submitting Form 15H.

This being said, to make the most of the IDFC Bank FD rates, individuals must also check the features that facilitate greater savings and streamline their FD investment accordingly. Additionally, they should come up with a financial plan to align their goals smoothly.

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