IDBI Bank FD Interest Rate
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 the to industrial sector
FDs give a higher interest yield compared to a savings account and IDBI is one of the highest fixed deposit interest providers, amongst other finance institutions. This article gives you details about the Fixed Deposits facility offered by IDBI.
Interest Rates Chart 2023
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|46- 90 days||4%||4.5%|
|6 months 1 day to < 1 year||5.75%||6.25%|
|1 Year to 2 Years(except 444 Days Days)||6.8%||7.3%|
|> 2 Years to 5years||6.5%||7%|
|> 5 years to 10 years||6.25%||6.75%|
|>10 years to 20 years||4.8%||5.3%|
|Note: All interest rates are updated as of 30th Nov 2023|
returns on FD
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All you need to know about IDBI Bank FD Interest RateTypes of IDBI Bank Fixed DepositsPros and Cons of Investing in IDBI Bank’s FDIDBI Bank FD Eligibility CriteriaDocuments required for IDBI Bank FD accountHow to Open an FD with IDBI BankTax implications on IDBI Fixed DepositsTax rates on interest
Related Interest Pages
Types of IDBI Bank Fixed Deposits
Below are the Types of FDs offered by IDBI bank
- Suvidha Fixed Deposit: Minimum deposit start from Rs 10,000 and FD tenures vary from 7 days to 10 years.
- Suvidha Tax Savings Fixed Deposit: Tax saving FDs, unlike standard FDs, cannot be booked for less than a period of 5 years. The amount invested is exempt from tax under section 80C. In this FD you can invest upto Rs 1.50 Lakhs
- IDBI Bank Floating Rate FD: In floating rate FD, the interest rate changes quarterly i.e on April 1st, July 1st, October 1st and January 1st every year and 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.
- Naman Senior Citizens Deposits: FD with some special facilities on the interest rate, offered to the Senior Citizens of India. In this FD Bank offers 0.75% extra interest. However, it is a limited period offer valid till March 31, 2023,
- Amrit Mahotsav FD” scheme: It started w.e.f. February 13, 2023, wherein IDBI offers FD with 444 days (Interest 7.15% - 7.9%) and 700 days (Interest 7.25%-8%)
Pros and Cons of Investing in IDBI Bank’s FD
- The FD account can be accessed anywhere.
- Auto-renewal facility is offered.
- Loans can be availed against the balance that is available in the account.
- 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 Insurance and Credit Guarantee Corporation (DICGC) upto a maximum of ₹ 5,00,000 for each depositor.
- Interest earned on fixed deposits is not tax-free and subject to tax as per your applicable slab rate.
- Also in some cases, banks deduct TDS when paying the fixed deposit interest. So, if the individual has income below the basic exemption limit defined under the Income-tax Act, he/she will still have to file the Income Tax return to claim the refund of TDS deducted by the bank.
- Historically Fixed Deposits have given lower returns as compared to Mutual Funds and equity instruments.
IDBI Bank FD Eligibility Criteria
Below mentioned persons can open a Fixed Deposit with IDBI
- Charitable institutions
- Educational institutions
- Sole proprietorships
- Senior citizens
- Hindu Undivided Family
- Non-Resident Indians
- Joint account holders
Documents required for IDBI Bank FD account
Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer
- Aadhaar card.
- PAN card.
- Voter ID card.
- Driving Licence.
- Government ID card.
- Photo ration card.
- Senior citizen ID card.
How to Open an FD with IDBI Bank
1. 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.
2. 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.
3. 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.
Tax implications on IDBI Fixed Deposits
The Tax applications remain the same irrespective of the bank in which you open the fixed deposit.
- The interest earned on Fixed Deposit is taxable in the hands of an individual (age less than 60 years). The tax is levied as per the normal tax slab applicable for such individuals.
- In the case of a senior citizen (Age above 60 years), a deduction of up to ₹ 50,000 is available under section 80TTB.
- In case of a 5-year tax saving fixed deposit, you will be entitled to a deduction under section 80C of the Income Tax Act, wherein the deduction would be equal to the amount deposited during the Financial year with the maximum threshold limit of ₹ 1,50,000. (This benefit is not available for individuals who opt for a New Tax Regime)
Tax rates on interest
The bank is entitled to deduct TDS @ 10% as per Section 194A of the Income-tax Act,1961, if interest income exceeds ₹ 40,000 (₹ 50,000 for resident senior citizens) during the financial year.
However, if your total income is below the taxable limit, you can submit Form 15G (For individuals aged less than 60 years) or Form 15H (For individuals aged more than 60 years) to the bank and request them not to deduct any TDS.
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: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.