IDBI Bank FD Interest Rate

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:

• 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.

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 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.

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

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

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

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.

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)

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.