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IDBI stands for Industrial Development Bank of India. It is an emerging Indian banking and financial services company and it is headquartered in Mumbai, Maharashtra. IDBI offers a wide range of bundles of banking products and services to its customers these banking products also include FD. IDBI Bank provides different FD options to their customers, the basic aim is to provide a safe option that can be utilized to save money for a fixed tenure and give interest earnings to the customers. At the time of opening the account with the bank the depositor can deposit only once, during the ongoing tenure depositing additional money is not allowed. There are a wide range of benefits of opening an FD account with IDBI Bank as they provide an easy loan facility, auto-renewal of FD, and many other things.
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IDBI Bank FD Interest Rates on Domestic Deposits (Less than ₹2 crore)
IDBI Bank FD Interest Rates on Domestic Deposits (₹2-₹5 crore)
Features and Benefits of the IDBI Fixed Deposit1. Simple Investment with Liquidity and Flexibility: IDBI Bank Fixed Deposit is a secure investment option available for investors that provides guaranteed returns on investment. Fixed deposit returns are unaffected by any external circumstances, and the investor will get sure-shot returns on FD. 2. Flexible Tenure: IDBI Bank provides a wide range of tenure options; customers can choose from a variety of terms ranging from 7 days to 10 years with an IDBI Bank Fixed Deposit. This allows customers flexibility, as they can choose the tenure as per their investment horizon. 3. Premature/Partial Withdrawal: IDBI Bank Fixed Deposits are a very liquid investment option for customers. The bank gives the customer the option to make withdrawals in times of emergency. Customers can close their deposits partially or fully before the date of maturity and have funds easily disbursed to the customer’s account for emergency use. 4. Additional Interest: IDBI Bank offers an extra 0.50% interest rate to senior citizens on top of the regular fixed deposit interest rate. This allows senior citizens to invest their savings at higher returns and manage their retirement funds more efficiently. 5. Overdraft Against FD: IDBI Bank also offers overdrafts against fixed deposits. This gives customers the advantage of getting instant funds without breaking the terms of a fixed deposit. 6. Automatic Renewal Facility: IDBI Bank allows customers to open an FD that will automatically renew. This ensures that your FD is automatically renewed for the same term on the maturity date, which results in no loss of interest and manages the customer’s fund better. 7. Interest Payout: IDBI Bank gives its customers a distinct feature to choose the type of interest payout. Customers can choose options from monthly, quarterly, and annually based on their wishes. Types of IDBI Bank FD Schemes1. IDBI Bank Suvidha Fixed Deposit
2. IDBI Bank Suvidha Tax Saving Fixed Deposit
3. IDBI Bank Systematic Savings Plan (SSP)
How to Invest in IDBI Bank FD?1. Using the Internet Banking Facility
2. Using the Mobile Application
3. Using the Offline IDBI Bank BranchApart from the above two the user can also visit the nearest IDBI Bank branch, and ask for the FD application form. The user will have to fill out the FD form select the tenure of the IDBI FD along with the all necessary information and fulfill all the document requirements along with the nominee details. On successfully validating the information the bank will issue the FD certificate. Eligibility to Open an IDBI Bank FD AccountConsumers should first determine whether they are eligible to invest in IDBI Bank. The following are the prerequisites for investing in an IDBI Bank fixed deposit, 1. Individuals 2. Hindu Undivided Family (HUF) 3. Sole proprietorships and joint ventures 4. Private or public limited companies 5. One-person company 6. Trust, society, and association 7. Partnership firms, including Limited Liability Partnerships (LLP) 8. Any government establishment Documents Required to Open IDBI Bank FDThe following documents are required to open a fixed deposit at IDBI Bank, 1. Proof of Identity
2. Proof of Address
Customers also need to provide their two passport-sized photographs at the time of opening the deposit account. It is mandatory for customers to furnish identity proof and address proof. Minors and senior citizens are also required to follow the same. Tax on IDBI Bank Fixed DepositAny investment made under the IDBI Bank Tax Savings FD entitles the investor to a tax saving of up to ₹1,50,000 per annum. No other IDBI Bank FDs are eligible for tax savings under Section 80C of the Income Tax Act. It is to be noted that all interest income from the IDBI Bank Fixed Deposit is taxable according to the slab rates of the customer. A TDS of 10% shall be chargeable if the income from IDBI Bank FD exceeds ₹40,000. The same limit shall increase to ₹ 50,000 per annum in the case of senior citizens. Furthermore, if, in any case, the investor fails to furnish PAN Card details to the bank, the TDS rate will be deducted at 20%. Loan Against IDBI Bank FDIDBI Bank offers loans against its fixed deposits. Customers can receive up to 90% of the deposit as a loan against a fixed deposit. The rate of interest charged on a loan is between 1% and 2%. Furthermore, it is worth noting that the IDBI bank loan tenure will be limited to the IDBI fixed deposit tenure. Premature Closure of IDBI Bank Fixed DepositIDBI Bank allows premature withdrawals from IDBI fixed deposits. However, such premature withdrawals are not allowed from the tax-saving fixed deposit. However, IDBI Bank charges a penalty if the deposits are withdrawn before the completion of the tenure of the FD. IDBI Bank levies penalties as per the terms and conditions of the bank. The bank generally deducts 1% as a penalty, and such closures include withdrawals made either through sweep-ins or partial withdrawals. Frequently Asked Questions (FAQs)1. What is the maximum and minimum limit of deposit under the IDBI Bank FD scheme? Answer:
2. Can an investor make a premature withdrawal from the IDBI Bank FD scheme? Answer:
3. Are IDBI Bank’s FD rates higher than its savings account rates? Answer:
4. Who is eligible to open FD? Answer:
5. What benefit does a senior citizen get by investing in IDBI FD? Answer:
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