Investing in a fixed deposit option is considered a wise investment step by many people because of high security and returns. In a fixed deposit scheme you can invest money for a stated period of time after which a fixed rate has to be paid until the end of deposit term. Citi Bank’s fixed deposit options offer a great variety in terms of interest rates and deposit periods.
Citi Bank Fixed Deposit Interest Rates for different Investment Periods
|Investment period||FD rates for regular deposit||FD rates for Senior Citizens|
|7 days to 14 days||3.00%||3.50%|
|15 days to 25 days||3.25%||3.75%|
|26 days to 35 days||3.50%||4.00%|
|36 days to 45 days||4.50%||5.00%|
|46 days to 180 days||4.75%||5.25%|
|181 days to 1095 days||5.00%||5.50%|
|1096 days to 10 years||5.25%||5.75%|
Citi Bank FD: Special Features
- Nomination facility is available to any family member or spouse can be nominated to receive the final amount
- Citibank FD options allow you to invest from Rs 1000 onwards for as low as 7 days.
- Customers can avail loan facility up to 90% of the FD amount.
- Competitive interest rates are offered against all FD schemes
- Easy and fast liquidity options are available.
- Citibank also offers its customers the benefits of Higher Net Relationship Value (NAV)
- NRE NRO and FCNR deposit facility are available.
- FD account can be opened online or by visiting your nearest Citibank branch.
Citibank Fixed deposit: Is it the best way to save?
High security, higher rates of interest, certain tax saving benefits and flexibility are some of the reasons people invest in fixed deposit schemes. Citi bank offers attractive FD schemes with competitive interest rates. Although investing in fixed deposit schemes offer a level of security, this might not be an ideal option in terms of wealth creation. Hence, other options like investing in mutual funds must be explored as well. The advantage of investing in mutual funds over fixed deposits primarily is that they are managed by professional fund managers who have experience in predicting market trends and make sure your money is invested in the right way. This mitigates the risk that mutual funds come with to a large extent. There is less liquidity in the case of fixed deposits till the deposit tenure is over, on the other hand, mutual funds over higher liquidity in case the lock-in period has been crossed. The return rates for fixed deposits are fixed for a particular deposit tenure however in case of mutual funds you can get almost 2x more returns in a positive market.
Citi Bank FD: Eligibility Criteria
The following groups and individuals are eligible to open an FD account with Citi Bank
- Joint accounts for 2 or more individuals
- Partnership firms
- Blind persons
- Illiterate persons
- Joint Hindu families
- Limited companies and partnership firms
- Municipalities and panchayats
- Charitable, religious, and educational institutions
- Associations, societies, clubs etc.
- Sole proprietary concerns
Citi Bank: Premature Withdrawal
In all cases of premature withdrawal, 1% interest would be deducted from the original contract rate at the time of account release.
Tax benefits on Citi bank fixed deposit
Citi bank has a tax saving fixed deposit option with a deposit lock-in period of 5 years. Individuals, minors, and HUFs are eligible for this. You can go for this fixed deposit scheme to avail tax benefits under section 80C of the Income Tax Act,1961.
However, it is important to note here that in case of fixed deposits, the tax levied is dependent on the tax bracket you fall into irrespective of FD tenure. If the interest earned on your fixed deposit is more than Rs 10,000, TDS deduction of 10% would be deducted by the bank.
Mutual funds have an edge over fixed deposit in this regards as tax payable on mutual funds depends on the category. For example, returns on equity funds like Equity Linked Savings Scheme (ELSS) are tax-free and up to 1.5 lakh can be claimed under section 80C of the Income Tax Act,1961. Also, long-term equity funds (more than 1 year) are tax exempt.They offer a higher capital appreciation potential and a smaller lock-in period of 3 years. Hence we can say investing in Mutual funds is viable tax saving option.
Documents required to open Citi bank FD account
1. Identity proof
- PAN card
- Voter ID card
- Driving license
- Government ID card
- Photo ration card
- Senior citizen ID card
2. Address proof
- Telephone bill
- Electricity bill
- Bank Statement with Cheque
- Certificate/ ID card issued by Post office
Types of Fixed Deposit offered by Citi Bank
- Fixed/Short Term Deposit– A standard FD scheme offered by Citi bank wherein customers are paid fixed interest amounts at regular intervals.
- Quarterly/Monthly Term Deposit– In this scheme, customers can choose to receive interest payments at monthly or quarterly intervals
- You can also choose to receive payment at the end of the maturity period.