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Save Upto Rs. 45,000 Taxes by Investing in ELSS

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 of time after which a fixed rate has to be paid until the end of deposit term. IDFC bank’s fixed deposit options offer a great variety in terms of interest rates and deposit periods.

IDFC Bank Fixed deposit interest rates

Tenure FD Rates Senior Citizen FD Rates
7 days to 14 days 4.00% 4.50%
15 days to 29 days 5.00% 5.50%
30 days to 45 days 6.25% 6.75%
46 days to 90 days 6.50% 7.00%
91 days to 180 days 6.75% 7.25%
181 days to 365 days 7.00% 7.50%
366 days 7.50% 8.00%
367 days to 731 days 7.25% 7.75%
732 days to 10 years 7.20% 7.70%

The above rates are applicable for deposits of below Rs. 1 crore.

IDFC Bank: Special features

  • IDFC  bank offers competitive interest rates on all FD schemes.
  • IDFC bank FD investment is low risk and high on returns.
  • The minimum amount that can be deposited is pretty low.
  • The interest rate is compounded quarterly.
  • The penalty is not levied in case of premature withdrawals.
  • 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
  • The IDFC bank branches are available in small towns and rural areas as well

IDFC Bank Fixed Deposit Interest Rate

IDFC Bank fixed deposit: Is it the best way to save?

People usually invest in fixed deposit schemes when they want to earn steady gains and have high security. IDFC  bank offers attractive rates over various deposit periods with the flexibility of earning interest monthly, quarterly or at the end of maturity. However if getting higher returns is your prime concern then it is advisable to explore saving options apart from fixed deposits. One such option is investing in mutual funds. The advantage of investing in mutual funds over fixed deposits primarily is that they are managed by professional fund managers who have a good sense of market trends and make sure you get the highest returns. 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.

IDFC Bank: Eligibility Criteria

The following groups and individuals are eligible to open an FD account with IDFC Bank.

  • Individuals
  • Joint accounts for 2 or more individuals
  • Partnership firms
  • Trusts
  • Minors
  • 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

IDFC  Bank FD: Premature Withdrawal

IDFC bank allows premature withdrawal on their fixed deposits. No penal interests are charged when foreclosing your FD. When a customer closes his account prematurely, he or she will not pay interest according to the rate in the deposit contract but the term the deposit that is left with the bank.

Tax benefits on IDFC bank FD

IDFC  bank has a tax saver 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 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 IDFC  FD account

1. Identity proof

  • Passport
  • PAN card
  • Voter ID card
  • Driving licence
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

2. Address proof

  • Passport
  • Telephone bill
  • Electricity bill
  • Bank Statement with Cheque
  • Certificate/ ID card issued by Post office

Types of Fixed Deposit offered by IDFC bank

  • Fixed/Short Term Deposit– A standard FD scheme offered by IDFC 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.