IDFC Bank Fixed Deposit (FD) Rates

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The fixed deposit scheme is a popular saving option because of their low risk and higher rates of return as compared to other market options. In a fixed deposit scheme you can invest money for a stated period after which a fixed rate has to be paid until the end of the deposit term. IDFC bank’s fixed deposit options offer a great variety in terms of interest rates and deposit periods.

1. Fixed Deposit Interest Rates 2021 of IDFC Bank

In the table below, you can find the FD interest rates as applicable for regular customers and senior citizens on deposits less than Rs.2 crore with effect from 15 September 2020.

Deposit Tenure

Regular FD Rates* (% p.a.)

Senior Citizen FD Rates* (% p.a.)

7 days to 14 days

2.75

3.25

15 days to 29 days

3.00

3.50

30 days to 45 days

3.50

4.00

46 days to 90 days

4.00

4.50

91 days to 180 days

4.50

5.00

181 days to < 1 year

5.25

5.75

1 year to 499 days

5.75

6.25

500 days

6

6.50

501 days to 2 years

5.75

6.25

2 years 1 day to 5 years

5.75

6.25

5 years 1 day to 10 years

5.75

6.25

*Interest rates are subject to change with time.

2. Different Types of FD Schemes by IDFC Bank

  1. Regular FD Account:

    A regular FD account is dedicated for individuals aged between 18 years and 60 years. A set of interest rates are stated by the RBI for such an FD account and will be updated time-to-time. Any Indian resident individual who qualifies the required criteria can open this account.

  2. Senior Citizen FD Account:

    FD accounts opened by senior citizens, i.e. individuals aged above 60 years, are known as senior citizen FD accounts. The interest rate for such accounts is usually 0.5% higher than the regular ones. They can choose a monthly interest payout option, which can be thought of as a means for the monthly expenses for senior citizens.

  3. NRE FD Account:

    A Non-Resident External (NRE) FD account is an FD account that can be opened by two or more NRIs. You can convert the foreign currency earned outside India into Indian currency denominations by depositing in this account. The principal and interest from this account are completely repatriable. The interest income from this account is tax-exempt as per Section 10(4) of the Income Tax Act, 1961.

  4. NRO FD Account:

    Overseas Citizen of India (OCI), Person of Indian Origin (PIO), and Non-Resident Indian (NRI) are the eligible entities that can open a Non-Resident Ordinary (NRO) FD account with the bank. Income earned in INR by these entities can be deposited only in NRO FD accounts. Such an account can be jointly held with an Indian resident as long as this person is a relative as specified under Section 6 of the Companies Act, 1956.

3. IDFC Bank FD Special Features and Benefits

  • IDFC Bank offers competitive interest rates on all FD schemes.
  • The minimum deposit amount required to open an FD account is Rs.10,000.
  • The minimum deposit tenure for domestic and NRO deposits is seven days.
  • The minimum tenure for NRE deposits is 365 days.
  • Loan facility against FD amount can be availed.
  • Nomination facility is available to any family member, or spouse can be nominated to receive the final amount.
  • Interest rates are calculated on a simple-interest basis for a tenure of up to 180 days.
  • Interest on tenure beyond 180 days is compounded every quarter.
  • In case of premature closure of the Fixed Deposit (FD), interest will be paid basis interest rate applicable at the time of booking the term/fixed deposit.
  • A penalty may be applicable in the case of premature closure.

4. Basic Eligibility Criteria for IDFC Bank FD Account

The following entities are eligible for opening FD accounts with IDFC Bank:

  • Individuals.
  • Sole proprietorship.
  • One-person company.
  • Hindu Undivided Family (HUF).
  • Partnership firm.
  • Limited Liability Partnership (LLP).
  • Private/public limited company.
  • Trust, association, society government/quasi-government institutions, including a municipal corporation, defence establishment, etc.
  • Joint Ventures.
  • Liaison/Representative/Branch office of foreign companies.
  • Embassy offices in India.

Documents Required

If you are an existing customer of the bank, no additional documentation is necessary to open an FD account. Otherwise, you may have to provide the following documents.

  • 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

5. Tax Benefits on IDFC Bank Fixed Deposits

IDFC Bank offers a tax-saving fixed deposit option with a mandatory lock-in period of five years. Individuals and HUFs are eligible to get the benefit of the scheme. You can go for this fixed deposit scheme to avail tax benefits under Section 80C of the Income Tax Act,1961.

Note that the tax levied is dependent on the tax bracket you fall into irrespective of the interest rate or other factors in the case of fixed deposits. If the interest earned on your fixed deposit is more than Rs 40,000 during the financial year, the bank deducts tax at source at 10%. This rate has been reduced to 7.5% due to COVID-19 pandemic during the period from May 2020 to March 2021.

Mutual Fund or FD?

Tax-saving or ELSS mutual funds have the potential to provide much higher returns than fixed deposits, particularly during a bullish run in the markets. ELSS funds come with a lock-in period of only three years, while it is five years for tax-saver FDs. ELSS funds can provide returns in the range of 12% to 14%, while the interest on FDs is always restricted.

Investing in ELSS provides investors with the dual benefit of tax deductions and wealth creation over time. The equity exposure of these mutual funds gives ELSS an edge over the other tax-saving investments. If you are finding it challenging to pick the best-performing ELSS funds on your own, then invest in the funds handpicked by our in-house experts.

You can invest in a hassle-free and paperless manner with ClearTax, and the entire process takes no more than five minutes. Also, you get your investment proof instantly. Furthermore, we prefill your personal information and tax-saving investment details at the time of filing ITR with us.

6. 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.

7. Frequently Asked Questions (FAQs)

Q. What happens if the fixed deposit account I opened has to be closed before completing the minimum deposit period?
A. If you happen to close the FD account before completing the minimum deposit tenure, no interest will be paid for the principal amount.

Q. Can I choose the monthly payout option for an FD account that compounds interest once every quarter?
A. In the case of monthly payout of interest from an FD account that compounds interest quarterly, the compound interest for the quarter is calculated and paid monthly at a discounted rate over the standard FD rate.

Q. Is partial withdrawal allowed?
A. Yes, partial withdrawal is allowed.

Q. I am a senior citizen. Do I have to pay the penalty for premature withdrawal?
A. The bank does not charge a penalty for premature withdrawal in the case of senior citizens.