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IDBI Bank Fixed Deposit

Updated 06 Dec 2023

A fixed deposit or an FD is an investment instrument that banks and non-banking financial companies (NBFC) offer their customers. It gives a fixed-income option to investors.


Industrial Development Bank of India  (IDBI) offers the Fixed Deposit Facility to its customer. It is a development finance institution established in 1964 the under the ownership of the Life Insurance Corporation of India and the Government of India. One of its objectives is to provide financial services to the industrial sector


FDs give a higher interest yield than a savings account, and IDBI is among the highest fixed deposit interest providers amongst other finance institutions. This article gives you details about the Fixed Deposits facility offered by IDBI.

Types of IDBI Bank Fixed Deposits

Below are the Types of FDs offered by IDBI Bank

  • Suvidha Fixed Deposit
  • Suvidha Tax Savings Fixed Deposit
  • IDBI Bank Floating Rate FD
  • Naman Senior Citizens Deposits
  • Amrit Mahotsav FD scheme

Benefits of IDBI Fixed Deposit Schemes

  • The FD account can be accessed anywhere.
  • The auto-renewal facility is offered.
  • Loans can be availed against the balance that is available in the account.
  • A premature withdrawal facility is provided. However, a penalty will be levied in the case of premature withdrawal.
  • Senior citizens are offered an additional interest rate.
  • Deposits of the Bank, which are payable in India, are protected by the Deposit

Features of IDBI Suvidha Fixed Deposit Scheme

  • The minimum deposit starts from ₹10,000.
  • FD tenures vary from 7 days to 20 years.
  • You can receive interest monthly, quarterly, half-yearly, or yearly depending upon your suitability.
  • Senior citizens will get an extra interest of 0.5%.
  • The auto-renewal facility is available.
  • Pre-mature withdrawal is available, but a penalty will be levied.
  • The interest rate for these schemes range from 3.00% to 4.80% for the general public, and 3.50% to 5.30% for senior citizens.

Features of IDBI Suvidha Tax Savings Fixed Deposit Scheme

  • You can invest up to  ₹1,50,000 per annum.
  • Minimum lock-in period is 5 years.
  • You can avail Home Loans, Personal Loans and Education Loans, loans against Securities with minimal paperwork by keeping this FD as collateral.
  • The amount invested is exempt from tax under section 80C.
  • Any individual or HUF can invest in IDBI Bank Suvidha Tax - Saving Fixed Deposit.
  • Based on the 5 year tenor, the interest rate is fixed at 6.50%.

Features of IDBI Bank Floating Rate Fixed Deposit Scheme

  • In floating rate FD, the interest rate changes quarterly i.e on April 1st, July 1st, October 1st and January 1st every year.
  • The investors can avail the benefits of a changing interest rate.
  • The interest on the deposit is payable quarterly on the last day of each quarter.
  • RBI guidelines determine the change in the rate of interest. 
  • You can avail a loan/overdraft against term deposit.
  • Nomination facility is available for this FD free of charge.

Features of IDBI Naman Senior Citizens Deposits Scheme

  • In this FD Bank offers 0.75% extra interest to senior citizens.
  • You can get auto Sweep Out / Sweep In facility above ₹15,000.
  • Minimum investment amount is ₹10,000.
  • A penalty of 1% is levied on partial withdrawals.
  • The interest rate for these schemes range from 3.50% to 5.30% for senior citizens.

Features of IDBI Amrit Mahotsav Fixed Deposit scheme (Discontinued from 15th August 2023)

  • It started w.e.f. February 13, 2023.
  • IDBI offers FD with 444 days (Interest 7.15% - 7.9%) and 700 days (Interest 7.25%-8%)
  • Pre-mature withdrawal and closure of FD account is allowed.
  • This scheme was valid only up to August 15, 2023.
  • The interest rate for these schemes range from 3.00% to 4.80% for the general public, and 3.50% to 5.30% for senior citizens.

Eligibility Criteria

Below mentioned persons can open a Fixed Deposit with IDBI

  • Charitable institutions
  • Educational institutions
  • Firms
  • Partnerships
  • Sole proprietorships
  • Senior citizens
  • Hindu Undivided Family
  • Non-Resident Indians
  • Minors
  • Residents
  • Joint account holders
  • Individuals

Documents Required

Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer:

 

Identity Proof

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

Address Proof

  • Utility Bills
  • Electricity Bills
  • Bank statement
  • Cancelled Cheque

How to Open an IDBI Fixed Deposit Account

If you already hold a Savings or Current Account with IDBI, a Fixed Deposit can be opened using the below procedure.

 

Using IDBI Bank Mobile Application (App)

  • Login to the IDBI Bank Application
  • Go to the Banking section in the App
  • Click on the Fixed Deposits option
  • Then click on Open Fixed Deposits. By this, you will get an online form in which you will be required to select the FD tenure and insert the deposit amount.
  • After filling out the form once can submit the details and create an FD.

 

Using IDBI Bank Internet banking website

  • Login to the IDBI Internet Banking website, and go to the “Home” tab. Click on Accounts >> Fixed Deposit Account. Then Click on the type of Deposit that you need to make (Example: Suvidha Fixed Deposit). By this, you will get an online form in which you will be required to select the FD tenure and insert the deposit amount. After filling out the form once can submit the details and create an FD.
  • If you are a new customer of IDBI and do not hold any account, you can visit the nearest IDBI Bank with the Original PAN & Aadhar as well as the soft copy of the same. The bank official will help you to directly open an FD without having any savings / current account.
  • Also, there is an option to create a savings/ current account with the bank and then open an FD using a Mobile application or Internet Banking Facility.

IDBI Fixed Deposit Scheme Premature Withdrawal Terms and Conditions

  • A penalty of 1% will be levied on the applicable rate for deposits closed prematurely. Such closures include withdrawals through sweep-ins and partial withdrawals as well.
  • No interest will be paid if the deposit is held for a tenure of below 7 days.

FAQs

When is the right time to invest in an FD?

One can invest in Fixed Deposits when interest rates are high or when someone has retired and aims to have a safe investment.

Is the Rs. 5 lakh DICGC insurance cover applicable separately for every bank?

Yes, for such extreme situations, each depositor is insured up to a maximum of ₹ 5 lakh (for both principal and interest). In case you have multiple fixed deposits with several banks, the insurance coverage cap is separately applied to the amount in every bank.

How can I break my IDBI Bank FD?

Offline: Place a request at your nearest IDBI Branch. With this method, the amount will be credited to your account within 24-48 hours.
Online: Log in to the app or website and open the FD that you want to break, click on Premature Withdrawal and the amount will be credited within the same day.

How frequently the FD interest rates are modified by IDBI?

There is no specific rule or criteria for interest rate changes that IDBI follows. The rates are changed anytime considering the repo rate and inflation changes as well as the bank’s operations.

Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

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