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IDFC Bank FD Interest Rate

Fixed deposit is a traditional investment option where banks and other financial institutions provide a fixed rate of return until the maturity date. There are some deposit-taking NBFCs (Non-Banking F...Read More

IDFC First Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 07 Dec 2023
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 – 14 days3.5 %4 %
15 – 29 days3.5 %4 %
30 – 45 days4 %4.5 %
46 – 90 days4.5 %5 %
91 – 180 days5 %5.5 %
181 days – 1 year6.5 %7 %
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1 year 1 day– 550 days
7.5 %8 %
551 days – 2 years7.25 %7.75 %
2 years-1 day – 749 days7.25 %7.75 %
750 days7.25 %7.75 %
751 days – 3 years7.25 %7.75 %
3 years 1 day – 5 years7 %7.5 %
5 year 1 day - 10 years7 %7.5 %

Types of IDFC Fixed Deposit

  1. Standard FDs: An investor needs to invest his/her money for a fixed period of time at a predetermined rate of interest. Standard FD tenure varies from 7 days to 10 years. It also facilitates loans and overdrafts against the FD money and premature withdrawal is also allowed but with a penalty.
  2. Tax-Saving FDs: Here unlike Standard FD the amount cannot be booked for less than 5 years and it does not provide the facility of loan and overdraft against the FD amount, you cannot avail of the facility of premature withdrawal but a deduction under 80C is allowed upto ₹1.5 lakh of the Income Tax Act.
  3. Cumulative FDs: The interest is compounded as per the choice of the investor and the interest is added to the investment amount and will be paid at the time of maturity.
  4. Non-Cumulative FDs: In this FD scheme investors will have the option to receive interest as a periodic payment like quarterly or half-yearly.
  5. Senior Citizens FD: This FD scheme is for senior citizens (age above 60 years), here investors get better returns in comparison to standard FD.
  6. Flexi FDs: In these FD schemes it offers the benefit of fixed deposit as well as savings bank account so that investors get a higher interest rate and liquidity.

Pros and Cons of investing in IDFC Bank

Pros:

  • It helps inculcate the habit of investing for a longer period of time.
  • Interest can be credited as per the choice of an investor like quarterly, half-yearly or annually.
  • One can save tax by investing into tax saving fixed deposits.
  • IDFC provides a nomination facility, so a Fixed Deposit account holder can assign a nominee for the amount deposited.
  • As per the requirement of the investor, he/she can liquidate the fund and can use it in an emergency.
  • Amount invested with Bank is covered by DICGC insurance for the total sum of Rs 5 lakhs. 
  • Investor can avail of the loan facility against 90% of the amount of the Fixed deposit.

Cons:

  • 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 at the time of paying the fixed deposit interest. So if the individual has income below the basic exemption limit as 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 Fund and equity instruments

IDFC Bank eligibility criteria

Resident Indians, senior citizens, members of HUF, and NRIs are eligible to open their fixed deposit accounts with IDFC Bank.

Documents required for IDFC Bank FD account

  1. Aadhar Card
  2. Passport
  3. Voter ID card (Election card)

How to open an FD account with IDFC Bank account

Anyone can open an FD account in IDFC bank with the IDFC bank app who has a saving or current account in IDFC bank

Follow the below-given steps to open the FD account through the app;

  1.  Login to IDFC FIRST Bank App and Click on Open FD
  2. Select the account from where the investment amount will be debited.
  3. Enter the investment amount
  4. Select the scheme where you want to invest.
  5. Lastly, click on create FD to complete the process.

If an investor does not want to open online then one can apply offline also by visiting the nearest IDFC Bank branch.

Tax implications on IDFC Fixed Deposits

1. The interest earned on all types of FDs is included in the total income and is taxable as per the prevailing slab rate.

2. As per section 80C of the Income-tax Act 1961, the investor gets an exemption of ₹1,50,000 in tax saver FD investment.

3. In the case of a senior citizen (Age above 60 years), a deduction of up to ₹50,000 is available and for non-senior citizens up to ₹40,000.

4. If the PAN is not provided then, in that case, 20% TDS is levied.

5. In case your total income is below the taxable limit i.e. ₹ 2.5 lakhs, you can avoid TDS by submitting Form 15G to the bank.

6. In the case of senior citizens if your total income is below the taxable limit then you can avoid TDS by submitting Form 15H to the bank.

FAQs

What is the minimum amount required to open an FD account in IDFC Bank?

The minimum amount required to open an FD in offline is ₹10,000 and if an investor opens through the Mobile app the minimum amount is ₹1,000.   
 

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.

In the case of a Joint deposit account who can claim tax exemption under section 80C?

In the joint holder deposit case, the First holder will get a tax deduction under 80C.

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IDFC First Bank

Calculate IDFC First Bank FD Returns

₹1,00,000
1 year 1 day– 550 days
7 – 14 days15 – 29 days30 – 45 days46 – 90 days91 – 180 days181 days – 1 year1 year 1 day– 550 days551 days – 2 years2 years-1 day – 749 days750 days751 days – 3 years3 years 1 day – 5 years5 year 1 day - 10 years
7.5 %
Yes
No
Maturity Amount₹1,07,521

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