IDBI FD - Scheme, Eligibility, Documents

IDBI Bank is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 15 days to 20 years. Apart from that, IDBI Bank FD offers regular returns on fixed deposits ranging between 2.70% to 5.40%. For senior citizens, the interest rates on fixed deposits range between 3.20% to 5.75%. In addition to that, IDBI Bank fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

Different type of IDBI Bank term deposit products offered to the investors are listed as follows:

Description:

• This scheme offers the benefit to enjoy higher interest rate on the deposit.
• Loan facility upto 90 per cent is available on the deposit
• Earn attractive interest rate on your deposit
• Extra interest of 0.50 per cent payable to the senior citizens
• Availability of auto renewal facility
• Availability of various deposit options to suit your needs

Eligibility:

• Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

Description:

• The scheme has been designed to help the resident individuals and HUFs to save their money on tax and derive effective yields and returns on their fixed deposit.
• Interest will be compounded on a quarterly basis
• Nomination facility available
• Interest on the deposit is liable to tax / TDS
• Availability of auto renewal facility
• Tax benefits on deposit under section 80C of Income Tax Act, 1961

Eligibility:

• Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

IDBI Bank fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are mentioned below:

• Guaranteed returns: The best thing about IDBI Bank FD is that it offers guaranteed and assured returns to the investors. The return offered on a fixed deposits is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, IDBI Bank offers FD rates up to 5.40%. The interest rates offered on IDBI Bank FD is not only assured but also way higher than a savings account.
• Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, IDBI Bank term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
• Loan against FD: The investment made in an FD scheme is not only a reliable investment option but can also act as an asset. This is because IDBI Bank fixed deposit allows one to borrow a secured loan against IDBI Bank FD. Benefits of Loan Against FD of IDBI Bank are as follow:
  • Loan against FD of IDBI Bank offers the loan amount upto 90%-95% of the FD amount.
  • The interest charged on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
  • Loan against FD of the IDBI Banks flexible repayment options.
  • The processing fee of Loan Against FD in the IDBI Bank is nil.
  • It is a hassle-free loan and does not require the depositor to break the FD.
Loan Against Fixed Deposit
• Flexible tenures: IDBI Bank FD offers the investors the flexibility to choose the investment tenure as per their convenience. IDBI Bank offers fixed deposit for a minimum tenure of 15 days up to a maximum tenure of 20 years. IDBI Bank offers different interest rates across FD tenures.
• Flexible investment: Apart from the flexibility of tenure, IDBI Bank fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs. 10,000. Apart from that, one can invest in the IDBI Bank FD up to a maximum of .

Though a fixed deposit with IDBI Bank means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

Withdrawing funds prematurely from IDBI Bank will attract an interest rate lowered by Allowed below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of IDBI Bank fixed deposits with tenure less than seven days, the bank does not pay any interest.

IDBI Bank FD facility can be availed by the following type of investors:

• Indian Citizens
• Members of HUFs or the Hindu Undivided Family
• Business firms
• Local governing bodies
• Government departments
• Employees of private limited companies
• Trust accounts

IDBI Bank fixed deposit requires one to submit the following documents:

• Passport size photographs
• Identity proofs such as Aadhar card, passport, PAN card, and driving license.
• Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
• Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
• Bank account details such as passbook and account number.

Credit Cards againstIDBI Bank FD are secured credit cards. They are availed against the amount deposited in the term deposits. They are an ideal option for individuals with low CIBIL score and salary. Below mentioned are the important features of Credit Cards against IDBI Bank FD:

• The limit offered on the credit card depends upon the amount deposited in the fixed deposits. Generally, banks offer around 80% of the deposit amount as the total credit limit on the card.
• Credit Cards against the fixed deposits require minimum documentation.
• The minimum tenure of the term deposits should be 6 months to avail credit card against it.
• Secured Credit cards also offer discounts, cashback and rewards.
• The cardholder continues to earn the same applicable interest rate on FD.

✅What is the loan against FD repayment tenure in IDBI Bank?

Loan against FD is the  facility which allows the investor to avail the loan against the amount deposited in the term deposit. IDBI Bank offers the loan against FD facility to the FD investors with a repayment tenure of up to 20 years.

✅ What is the minimum investment for FDs under IDBI Bank?

IDBI Bank Fixed Deposit is one of the safest investment avenues and it can be availed with a minimum deposit of Rs. 10,000.

✅ What is the minimum amount for a fixed deposit in IDBI Bank?

The minimum amount required for a fixed deposit investment in IDBI Bank fixed deposit is Rs. 10,000.

✅ What is the current interest rate on FD in IDBI Bank?

Currently, IDBI Bank offers an interest rate ranging between 2.70% to 5.40% on its fixed deposits.

✅ What is the penalty for early withdrawal in IDBI Bank?

Bank charges penalty on premature withdrawal of fixed deposits. The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

✅ What is the minimum FD tenure for which a fixed Deposit account can be opened in IDBI Bank?

IDBI Bank fixed deposit can be opened with a minimum tenure of 15 days. The tenure of the IDBI Bank fixed deposits ranges from 15 days to 20 years.

✅Can I deposit additional amount in my IDBI Bank FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

✅Who is eligible for opening an FD account in IDBI Bank?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

✅What documents are required to open an FD account in IDBI Bank?

The documents required to open an FD account in IDBI Bank includes KYC documents and Passport size photos.

✅In how many years FD doubled in the IDBI Bank?

The time IDBI Bank fixed deposits will take to double the initial amount will depend upon the rate of interest offered on the FD. You can calculate the maturity amount of the IDBI Bank FD at MyLoanCare by entering the amount you want to deposit and the interest offered on FD.

✅Can an NRI open a IDBI Bank fixed deposit account?

No, Non-Resident Individuals are not allowed to invest in IDBI Bank schemes. It means that they are not eligible to invest in fixed deposits.

✅Is the IDBI Bank safe for FD?

Yes, the IDBI Bank is one of the safest avenues for any investments. IDBI Bank is backed by the Government of India and the returns on any investment including fixed deposits are guaranteed.

✅Is it wise to take a loan against FD from the IDBI Bank?

Yes, opting for a Loan Against FD is an excellent decision. The reasons to take loan from IDBI Bank are:

• It offers the loan upto 90%-95% of the FD amount.
• The interest levied on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
• Loan against FD offers flexible repayment options.
• The processing fee of Loan Against FD is Nil.
• It is a hassle-free loan and requires minimum documentation.
• Loan against FD helps the depositors to avoid the option of premature withdrawal.

However, there might be a chance that the alternative credit option is offering lower rates with better facilities. In that case, individuals must compare and decide on the credit option.