IDBI Bank Fixed Deposit (FD) Rates

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08 min read.

All of us need to learn money management and the first lesson in this regard is saving money. Parking money in fixed deposit (FD) accounts is a healthy saving habit and is considered a good option to build a rainy day fund. Since they are not dependent on market trends, they are a safe investment choice for many.

IDBI Bank offers a few fixed deposit schemes so that they can cater to the needs of people with different requirement standards. Here is all the information you need to know about the IDBI Bank FDs.

Fixed Deposit Interest Rates 2021 of IDBI Bank

The table below shows the interest rates applicable to deposits below Rs.2 crore effective from 18 November 2020.

Deposit Tenure Interest Rate for General Customers (% p.a.)* Interest Rate for Senior Citizens (% p.a.)*
0 to 6 Days NA NA
07 to 14 days 2.90 3.40
15 to 30 days 2.90 3.40
31 to 45 days 3 3.50
46 to 60 days 3.25 3.75
61 to 90 days 3.25 3.75
91 to 6 months 3.90 4.40
6 months 1 day to 270 days 4.40 4.90
271 days < 1 year 4.40 4.90
1 year 5 5.50
> 1 year to 2 years 5.10 5.60
>2 years to < 3 years 5.10 5.60
3 years to < 5years 5.10 5.60
5 years 5.10 5.60
> 5 years to 7 years 5.10 5.60
>7 years to 10 years 5.10 5.60
>10 years to 20 years* 4.80 5.30

*Interest rates are subject to change from time to time.

Different Types of IDBI Bank FD Schemes

  1. Freedom Deposit:

    Freedom Deposit, formerly known as ‘Suvidha Fixed Deposit’, is the regular scheme that offers an attractive, fixed interest rate on the deposit amount with easy liquidity. The minimum deposit tenure is seven days, and the maximum tenure is 20 years. The minimum deposit amount is Rs.10,000.

  2. Floating Rate Term Deposit (FRTD):

    This is a variant of the Freedom Deposit account where the interest earned is not fixed over the tenure. It varies with a reference rate, which is reset periodically. The account allows you to make the most of the interest rate changes without you manually closing an existing deposit account and re-opening another one.The scheme is suitable for investors who are not very risk-averse and who is conscious of the possible interest rate inflation. The rates are aligned with the Treasury Bill rates of the bank that are auctioned every fortnight at the RBI’s website and with the markup that may change once every calendar year.

IDBI Bank FD Special Features and Benefits

  • The minimum deposit tenure is seven days, and the maximum deposit tenure is 20 years.
  • The minimum deposit amount to open an FD account is Rs.10,000.
  • Both fixed and floating interest rates are available.
  • Monthly, quarterly and annual income plans are available for those customers who are looking for regular income.
  • Auto-renewal facilities are available.
  • Get an overdraft facility on the deposit.
  • Nomination facilities are available.
  • Premature withdrawal is allowed at the cost of a penalty.
  • Senior citizens are eligible for an additional interest rate of 0.5% over and above the regular rate.
  • Customers can choose to reinvest the interest earned and get quarterly compounding benefits.

Basic Eligibility Criteria for IDBI Bank FD

  • Resident individuals
  • Two or more individuals jointly
  • Minors with guardians only
  • HUF

Documents Required

  • Proof of Identity
    • Passport
    • PAN card
    • Voter ID
    • Driver’s license
    • Aadhaar card
  • Proof of Address
    • Passport
    • Aadhaar card
    • Bank statement with a cheque
  • Proof of Date of Birth
    • Service discharge certificate
    • PAN card
    • Aadhaar card
    • Voter ID

Tax Benefits on IDBI Bank Fixed Deposit

IDBI Bank offers ‘Suvidha Tax Saving Fixed Deposit Scheme’ where the deposits get income tax benefit under Section 80C of the Income Tax Act, 1961. With effect from 18 November 2020, regular customers get interest at the rate of 5.10% p.a. and senior citizens get an interest rate at 5.60% p.a. Individuals and Hindu Undivided Families (HUFs) are eligible to open this account. The deposit made in this account will have a lock-in period of five years.

The interest you earn from any of the FD/RD accounts with the bank will be subject to tax deducted at source (TDS) if it exceeds Rs.40,000 (Rs.50,000 for senior citizens) per financial year. You can submit Form 15G/15H, as applicable, to request the bank not to deduct tax at source if your annual income is below the basic exemption limit.

FD Interest Rate Calculator

Visit our easy-to-use FD calculator page to predict the returns you may receive upon putting your money in a fixed deposit account.

Frequently Asked Questions (FAQs)

Can I get a sweep-in facility on my FD account?

Yes, you can get a sweep-in facility on an FD account subject to certain conditions. It provides the flexibility of a savings account with safety and a higher interest rate on fixed deposit. You can link multiple FD accounts to a single savings account. When there are no funds in the savings account, you can access funds from the linked FD account through debit card or a cheque.

How much money can I expect from the overdraft facility?

An overdraft of up to 90% of the FD account balance will be offered. Note that the FD account must have a minimum balance of Rs.10,000 to avail the facility.

Does the additional interest rate stay valid on deposits of any tenure and any amount in the case of senior citizen deposit accounts?

Senior citizen accounts can earn additional interest rate only on tenures of one year and above for deposits starting from Rs.10,000.

How does premature withdrawal work in the case of Floating Rate Fixed Deposits?

In the case of Floating Rate Fixed Deposits, premature withdrawals are not allowed during the lock-in period of one year. After one year, upon premature withdrawal, the interest rate applicable will be the average benchmark rate of the immediately preceding quarter with the markup of applicable preceding tenure.

Consider the illustration where you book an FD account for two years but request for premature closure after completing 1 year and 115 days. In this case, the applicable rate would be the average benchmark of the quarter preceding the quarter in which the deposit account will be closed together with the mark up of one year.

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