Fixed deposit options encourage a healthy saving habit and are good options to build a rainy day fund. They are not dependent on market trends which makes them a safe investment choice for many. 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. IDBI Bank’s fixed deposit options offer a great variety in terms of interest rates and deposit periods.
IDBI Bank Fixed deposit interest rates
|Tenure||FD Rates||Senior Citizen FD Rates|
|15 days to 30 days||4.25%||4.25%|
|31 days to 45 days||4.50%||4.50%|
|46 days to 60 days||5.00%||5.00%|
|61 days to 90 days||5.25%||5.25%|
|91 days to 6 months||6.00%||6.00%|
|271 days to 364 days||6.50%||6.50%|
|6 months 1 day to 270 days||6.50%||6.50%|
|1 year 1 day to 2 years||6.50%||7.00%|
|2 years 1 day to 4 years 364 days||6.25%||6.75%|
|5 years to 20 years||6.00%||6.50%|
IDBI Bank FD: Special Features
- Nomination facility is available to any family member or spouse can be nominated to receive the final amount.
- Minimum deposit tenure is 15 days and the maximum is 20 years.
- Customers can avail loan facility up to 90% of the FD amount.
- Access to deposits is available anytime you want.
- Competitive interest rates are offered against all FD schemes
- Easy and fast liquidity options are available.
- Facility of account auto renewal is available upon maturity.
- You can choose to get the interest, monthly, quarterly or annually based on your preference.
- Senior citizens get an extra 0.5% interest rate on all FD schemes than regular customers.
IDBI Bank FD: Is it the best way to save?
Investing in a balanced mix of safe and risky investment options is considered as a good investment strategy. While fixed deposits offer security they might not be ideal wealth creation investment instruments. Mutual funds, on the other hand, can help you achieve your financial goals to some extent.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. In a positive market, you can get returns as high as 2 times as compared to fixed deposits which have fixed income rate for a deposit tenure. Hence if wealth creation is your goal and you have a moderate risk-taking appetite, investing in mutual funds can prove to be very fruitful.
IDBI Bank FD: Eligibility Criteria
The following groups and individuals are eligible to open an FD account with IDBI 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
IDBI Bank: Premature Withdrawal
IDBI bank has an edge over other banks in this regard as no penalty is levied on premature withdrawal of fixed deposits.
Tax benefits on IDBI bank fixed deposit
IDBI bank offers tax saving fixed deposit options. The tax saving option can be availed under the “IDBI Bank Suvidha Tax Saving Fixed Deposit Scheme”, 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. TDS certificate will be provided by the bank upon deduction.
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 capital gains on equity mutual fund units held for more than 12 months 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 IDBI 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 IDBI Bank
- Fixed/Short Term Deposit– A standard FD scheme offered by IDBI 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.