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The fixed deposit scheme is a popular saving option because of its 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.
RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.
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 1 May 2021.
|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||3.5|
|30 days to 45 days||3.5||4|
|46 days to 90 days||4||4.5|
|91 days to 180 days||4.5||5|
|181 days to < 1 year||5.25||5.75|
|1 year to 2 years||5.5||6|
|2 years 1 day to 3 years||5.75||6.25|
|3 years 1 day to 5 years||6||6.5|
|5 years 1 day to 10 days||5.75||6.25|
*Interest rates are subject to change with time.
The following entities are eligible for opening FD accounts with IDFC Bank:
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.
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.
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.
Visit our easy-to-use FD calculator page to predict the returns you may receive upon putting your money in a fixed deposit account.
If you happen to close the FD account before completing the minimum deposit tenure, no interest will be paid for the principal amount.
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.
Yes, partial withdrawal is allowed.
The bank does not charge a penalty for premature withdrawal in the case of senior citizens.