IDBI Bank FD Interest Rates: Tenure‑Wise Returns & Benefits

Key Takeaways
 

• IDBI Bank FD offers up to 7.05% interest for senior citizens on specific tenures.
   
• Interest rates reset quarterly for floating-rate fixed deposits.
   
• Tax Saving IDBI Bank FD allows ₹1,50,000 annual investment with tax benefits.

 Fixed deposits remain one of the safest investment options in India. IDBI Bank FD offers attractive fixed deposit schemes for investors. IDBI Bank FD provides guaranteed returns with flexible tenure options available. 

I opened an FD with IDBI Bank of ₹1,50,000 for 271 days. So, on my FD, I received an interest rate of 6% p.a.

Senior citizens receive additional interest benefits on their investments. IDBI Bank FD ensures secure savings with competitive interest rates. This blog explores IDBI Bank FD rates, features, and benefits.

IDBI Bank FD Interest Rate

IDBI Bank FD offers competitive interest rates for different tenures. Senior citizens receive an additional 0.50% interest on all deposit tenures.

Choose an IDBI Bank FD tenure based on your financial goals.

Types of IDBI Bank Fixed Deposit Schemes

IDBI Bank FD offers various schemes to suit different financial needs:

• IDBI Suvidha Tax Saving Fixed Deposit: You can invest up to ₹1,50,000 annually for five years. This scheme provides complete door-to-door banking services for depositors. Tax benefits make this option attractive for saving money.
• IDBI Floating Rate Fixed Deposit: Interest rates reset every three months based on market conditions. The minimum deposit amount is ₹10,000 for this scheme. Tenure ranges from one year to twenty years maximum. Senior citizens get 0.50% extra interest on their IDBI Bank FD.
• IDBI NRE Fixed Deposits: Non-resident Indians can deposit money in Indian rupees here. Tenure options range from one year to ten years. Loan facility against deposits is available for NRE customers.

IDBI Bank FD schemes provide flexible options for every investor's needs.

Features and Benefits of IDBI Bank Fixed Deposit

IDBI Bank FD offers attractive features for secure savings:

• Flexible Tenure Options: Minimum deposit tenure starts from just seven days. Maximum tenure extends up to twenty years for depositors. You can choose the period that suits your needs.
• Affordable Minimum Deposit: You need only ₹10,000 to open an account. This low requirement makes deposits accessible to most people.
• Interest Rate Choices: Both fixed and floating interest rates are available here. You can select the rate type matching your preference.
• Regular Income Plans: Monthly, quarterly, and annual income plans suit different needs. These options provide a regular income for your expenses reliably.
• Auto-Renewal Facility: Your deposit automatically renews upon maturity without manual intervention. This feature ensures continuous earning of interest for you.
• Senior Citizen Benefits: Senior citizens receive an additional 0.50% interest rate benefit on IDBI Bank FD. This extra rate helps elderly people earn more income.

IDBI Bank FD provides comprehensive benefits for every saver's requirements.

Comparison of IDBI Bank Fixed Deposit Rates with Other Banks

IDBI Bank Fixed Deposit rates compare competitively with other major banks:

Compare these rates carefully before choosing your deposit scheme wisely.

Eligibility Criteria & Required Documents for IDBI Bank Fixed Deposit Interest Rates

IDBI Bank Fixed Deposit requires simple eligibility criteria and basic documents:

Basic Eligibility Criteria for IDBI Bank Fixed Deposit:

• Resident individuals can open fixed deposit accounts with IDBI.
• Two or more individuals can open joint accounts together.
• Minors can open accounts, but only with their guardians.
• Hindu Undivided Families are also eligible to open accounts.

These are general eligibility criteria for IDBI Bank Fixed Deposit.

Documents Required to Open an IDBI Bank Fixed Deposit:
 

Keep all required documents ready before visiting the bank branch.

Tax Implications on IDBI Bank Fixed Deposit

IDBI Bank Fixed Deposit interest income attracts tax deduction at source:

When Do You Become Liable for TDS?

• TDS applies when interest exceeds ₹10,000 annually.
• The tax deduction starts from the first interest flow.
• Deposits held by minors are also subject to TDS.
• The guardian can claim the TDS credit for minors.

When Is TDS Deducted?

• TDS occurs when the total interest likely exceeds ₹10,000.
• Interest applies quarterly for cumulative fixed deposit accounts.
• Monthly interest payout deposits face TDS monthly.

At What Rate Is TDS Deducted?

• Resident Indians face 10% TDS on their interest income.
• The rate includes surcharge and education cess at 10%.
• Non-resident Indians pay 30% TDS on interest earnings.
• Non-residents with a valid PAN pay a 30.90% TDS rate.
• Without PAN, a 20% higher TDS rate applies to deposits.

Threshold Limit for TDS on NRO Deposits

• No threshold limit exists for TDS on NRO accounts.
• TDS applies to all interest payments from the first application.
• Savings bank deposits also attract TDS for NRO holders.

IDBI Bank Fixed Deposit interest is subject to applicable tax laws.

IDBI Bank Fixed Deposit Premature Withdrawal & Closure Rules

IDBI Bank Fixed Deposit allows early withdrawal with specific penalty charges:

Premature Withdrawal Penalty

• IDBI Bank charges 1% penalty on the applicable interest rate.
• The penalty applies at the time of premature withdrawal.
• Senior citizen fixed deposits also face the same penalty.
• This penalty reduces your total interest earnings on the deposit.

Interest Recalculation for Premature Closure

• The bank recalculates interest based on actual deposit days.
• Interest calculation depends on how long the deposit remains active.
• You receive reduced interest after deducting the penalty amount.

IDBI Bank Fixed Deposit premature closure affects your final interest earnings.

How to Invest in IDBI Bank Fixed Deposit?

IDBI Bank Fixed Deposit can be opened through three convenient methods:

1) Internet Banking

• Click on the 'Internet Banking' button on the IDBI website.
• Select the 'Personal (New)' or 'Personal' option to log in.
• Enter your username and password to access your account.
• Look for the 'Deposits' or 'Fixed Deposits' section in the dashboard.
• Choose 'Open a Fixed Deposit' or a similar option available.
• Submit all deposit information and maturity instructions clearly.
• Click on the 'Submit' button after verifying all details.
• A confirmation notification displays after successfully booking the deposit.
• Nominee information must be physically filled out and submitted later.

2) Mobile App - IDBI Bank App

• Download the IDBI Bank App and sign in immediately.
• Choose the ‘Opening a Fixed Deposit’ option to move ahead.
• Click on the ‘Submit’ button after verifying all details carefully.
• Confirmation notification displays after successfully booking your IDBI Bank Fixed Deposit.
• Nominee information must be physically filled out and submitted afterwards.

3) Opening IDBI Bank FD Offline

• Visit the nearest IDBI Bank branch for offline opening.
• Fill out the IDBI Bank FD application form completely.
• Present all necessary documents with your deposit amount together.
• An FD receipt will be provided after successful processing.

Choose your preferred method to open an IDBI Bank Fixed Deposit.

Conclusion

IDBI Bank Fixed Deposit offers competitive interest rates and flexible tenures. Senior citizens enjoy additional benefits with higher interest rates. 

Multiple investment options cater to different financial goals effectively. Choose IDBI Bank Fixed Deposit for secure and rewarding savings.

Bonus Tip: Do you know? Sachin Tendulkar is the brand ambassador of IDBI Federal Life Insurance.

FAQs
 

1. Does opening an IDBI FD through internet banking give better interest rates than visiting a branch?

Yes, IDBI sometimes offers slightly higher rates for online FD bookings under special digital schemes.

2. Can IDBI increase my FD interest rate if I move my salary account to them?

Not directly, but salary account holders may receive exclusive FD schemes during promotional campaigns.

3. Does IDBI offer higher FD rates for customers who hold multiple FDs with the bank?

No, but larger deposit amounts or special tenure schemes can fetch better rates.

4. Do IDBI Bank FD interest rates change based on RBI repo rate decisions?

Yes, IDBI revises FD rates periodically after RBI policy changes or liquidity shifts.
 

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‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.