IDFC FIRST Bank Fixed Deposit

IDFC FIRST Bank is one of the latest entrants into the banking sector. Though IDFC was in existence since 1997, they received the banking licence from the Reserve Bank of India in 2014. Our honourable Prime Minister Shri Narendra Modi inaugurated the first branch of IDFC Bank in 2015. The bank launched 23 branches across India on 01.10.2015. With effect from 18.12.2018, Capital First and IDFC Bank merged to create a new entity, IDFC FIRST Bank.

Why IDFC FIRST Bank Fixed Deposits?

IDFC FIRST Bank offers various types of loans and deposits to suit the needs of its customers. The most significant aspect of IDFC FIRST Bank is that it offers interest up to 7% on its savings deposits. The bank guarantees an initial rate of 6% for every customer who opens an account with them online. Apart from savings and current accounts, IDFC FIRST Bank offers Fixed Deposits and recurring deposits to resident and non-resident Indians. This bank provides one of the highest FD interest rates of 8.50% for a 2-year FD. Senior citizens get an additional 0.50%. The bank works on an online platform and hence appeals to the younger generation.

IDFC FIRST Bank Fixed Deposits - Features and Benefits

The features and benefits of IDFC FIRST Bank Fixed Deposit are as follows:

  • Facility to open FD online
  • The highest rate of interest on FDs
  • Fixed Deposit and recurring deposit options
  • Monthly and quarterly interest payout options
  • Reinvestment deposit products
  • Tax-saving Fixed Deposit product available

IDFC FIRST Bank Fixed Deposits - Rate of Interest

IDFC FIRST Bank offers one of the best rates for Fixed Deposits among all banks in India. The rates for domestic, NRE, and NRO accounts are the same. The interest rate depends on the quantum of deposits and the deposit tenure.

  • Resident Indian senior citizens get a benefit of an additional 0.50% over the general rates. This concession is not available to NRE and NRO accounts.
  • The minimum deposit tenure for NRE accounts is one year, whereas it is seven days for domestic and NRO accounts.

Rate of Interest for Domestic, NRO, and NRE deposits for amounts less than 2 Crores - with effect from 01.07.2019

Deposit Tenure Rate of Interest (% per annum)

7 to 14 days

4.00

15 to 29 days

5.00

30 to 45 days

6.25

46 to 90 days

6.50

91 to 180 days

6.75

181 days to 1 year

7.00

1 year 1 day to < 2 years

7.75

2 years

8.50

2 years 1 day to 5 years

7.50

5 years 1 day to 10 years

7.25

Tax Saver Deposit - Domestic Deposits only

Rate of Interest (% per annum)

5 years only

7.75

Rate of Interest on Recurring Deposits for Domestic, NRE, and NRO - with effect from 01.12.2016

Period - in Months Rate of Interest (% per annum)

6 months

5.75

9 months

7.00

12 months

7.25

15 months

7.25

18 months

7.25

21 months

7.25

24 months

7.25

27 months

7.25

36 months

7.25

39 months

7.20

48 months

7.20

60 months

7.20

90 months

7.20

120 months

7.00

Foreign Currency Non-Resident (FCNR) Deposits

Tenure USD GBP EUR AUD SGD

1 year to < 2 years

3.99%

1.85%

0.30%

3.00%

2.75%

2 years to < 3 years

3.77%

2.00%

0.40%

NA

NA

3 years to < 4 years

4.05%

NA

NA

NA

NA

4 years to < 5 years

3.85%

NA

NA

NA

NA

5 years

3.65%

NA

NA

NA

NA

IDFC FIRST Bank Fixed Deposits - Types of Deposits

IDFC FIRST Bank offers two kinds of deposits, Fixed Deposits and recurring deposits. Options to avail monthly or quarterly interest payouts are available. Such deposits attract a simple rate of interest. Similarly, deposits with tenures up to 180 days attract simple interest. The re-investment option is available for FDs with a mandate for more than 180 days. Under such circumstances, the interest is payable on the maturity of the deposit.

Fixed Deposit

Eligibility

  • Resident Indian individuals and non-individuals are eligible
  • Non-resident Indians can also open Fixed Deposits with IDFC FIRST Bank

Quantum of deposit

  • The maximum amount of deposit is 2 Crores, whereas the minimum amount is 10,000.
  • In case of bulk deposits above 2 Crores, contact the Relationship Manager of IDFC FIRST Bank.

Tenure

  • The minimum tenure is 7 days, and the maximum is for 10 years
  • For NRE deposits, the minimum tenure is 1 year

Interest payout

  • Monthly and quarterly options
  • Reinvestment facility available

Loans

Available

Premature payment

  • Allowed subject to penalty
  • No early payment penalty of senior citizen deposits

Taxation

As per IT rules

Tax Saving Deposits

Eligibility

Resident Indians having valid PAN Card

Purpose

To avail IT concessions under Section 80C of the IT Act

Quantum of deposit

  • The minimum Fixed Deposit amount is 10,000
  • Acceptable in multiples of 1
  • The maximum investment is 1.50 Lakhs

Deposit tenure

5 years fixed period

Interest payout

Monthly, quarterly, and reinvestment

Premature payment

Not allowed

Loans

Not permitted

Auto-renewal

Not available

Taxation

As per rules

Recurring Deposits

Purpose

Gradual savings every month

Eligibility

Resident and non-resident Indians

Quantum of deposit

  • The minimum monthly instalment is 2,000
  • The maximum investment is 75,000 per months

Deposit tenure

  • The minimum period is 6 months
  • The maximum tenure of RD is 10 years

Premature payment

Allowed

Interest payout

Reinvestment

Taxation

As per rules

Delayed payment

No penalty

Non-Resident Deposits

  FCNR Deposits NRE Deposits NRO Deposits

Currencies

USD, GBP, Euro, AUD, and SGD

Indian Rupees

Indian Rupees

Quantum of deposit

The minimum value is USD 1,000

10,000

10,000

Deposit tenure

1 year to 5 years

1 year to 10 years

7 days to 10 years

Type of deposit

Fixed Deposits

FD and RD

FD and RD

Interest payout

Payable on maturity

Monthly, quarterly, and reinvestment

Monthly, quarterly, and reinvestment

Taxation

Interest is tax-free

Interest is tax-free

TDS @30.90%

Joint accounts

Allowed

Allowed

Allowed

Funding of A/c

Remittance from abroad or transfer from NRE/FCNR account

Funding from abroad or transfer from FCNR/NRE A/c

Remittance from abroad

Legitimate income from India

Transfer from NRE/FCNR A/c

Repatriation

Interest and principal repatriable

Principal and interest amounts are repatriable

Repatriable subject to RBI guidelines

Documents Required for Opening IDFC FIRST Bank Fixed Deposits

  • If you are an existing customer of IDFC FIRST Bank, there is no need to provide additional documents.
  • For new customers, the standard KYC documents for ID and address proof apply
  • PAN Card is necessary for opening Fixed Deposits

Procedure to Open IDFC FIRST Bank Fixed Deposits

Existing IDFC FIRST Bank customers can open FD and RD online. New customers have to submit their contact information online at the official website of IDFC FIRST Bank. The bank representative or relationship manager will call back to provide information and collect the required documents for opening an account.

How do you open IDFC FIRST Bank Fixed Deposit online?

Existing customers need to log in to their internet banking module for opening FD. Select the appropriate FD option and complete the account opening process. It is also possible to open FD online using your mobile banking facility.

Maturity Value Calculator

IDFC FIRST Bank offers the facility of FD Maturity Calculator on its webpage. Using the calculator is easy.

  • Select whether you are a senior citizen or not
  • Enter the deposit amount
  • Choose the deposit type from the four options provided to you
  • Enter the tenure
  • You get the interest amount and the maturity value
  • This page directs you to open an FD online, as well

Tax Deduction at Source on Fixed Deposit Interest

Similar to other banks and financial institutions in India, IDFC FIRST Bank has to deduct TDS on interest payable on FD accounts. It does so if the interest amount is more than 40,000 in a financial year. Senior citizens get a concession of 10,000.

Customers can submit Form 15G (15H by senior citizens) to ensure that the bank does not deduct TDS.

The rate of TDS is 10% for all accounts except NRO A/cs. NRO A/c attracts TDS @30.90% on the interest amount without any concession. The interest payable on NRE and FCNR accounts are not taxable in India.

Premature Payment Penalty - IDFC FIRST Bank Fixed Deposits

  • IDFC FIRST Bank allows early closure of Fixed Deposits subject to charging a penalty
  • The interest will be payable for the period the deposit remained with the bank
  • The applicable rate of interest will be the lower of the following:
    • Contracted rate
    • Rate for the period the FD remained with the bank
  • The penalty of 1% will apply on the determined rate
  • Premature closure penalty applies to all deposits booked or renewed with effect from 02.05.2019.
  • In the case of Fixed Deposits, no interest will be paid for tenures less than seven days
  • There is no premature closure penalty for senior citizens
  • The following rules apply for recurring deposits:
    • No interest on domestic RD if tenure is less than 30 days
    • In case of NRE and NRO RD, the corresponding period is 365 days
    • For premature closure of domestic RD after 30 days and within six months, the FD rate for 30 to 45 days will apply.
    • If pre-closure is after six months, the rate applicable to the actual tenure will prevail
  • For FCNR deposits, there are no early withdrawal penalties. However, no interest is payable for deposit tenures for less than one year.

IDFC FIRST Bank Fixed Deposits - Frequently Asked Questions

Does IDFC FIRST Bank accept bulk deposits?

Yes, IDFC FIRST Bank accepts bulk deposits. Customers should contact the branch manager for deposits of 1 Crore and above. The rate of interest chart is available for deposits less than 2 Crores. One should contact the bank and obtain special rates if the amount of deposit is more than 2 Crores.

How does IDFC FIRST Bank calculate interest on FD?

IDFC Bank calculates interest on simple interest basis for deposit tenures up to 180 days. If the customer requests for a monthly or quarterly payout, the bank calculates simple interest on deposits for extended tenures, as well. Customers can opt for the reinvestment product where IDFC FIRST Bank compounds interest quarterly and adds it to the principal amount. Such interest is payable on maturity of the deposit.

Is there any income tax on the interest income?

Yes, interest income is taxable in India. The tax rate depends on the individual income tax slabs. However, IDFC FIRST Bank deducts TDS @ 10% if the annual interest payout exceeds 40,000 in a financial year. Senior citizens get an advantage of 10,000, whereby their exemption level is 50,000.

Is there any tax on interest received on RD accounts?

Yes, the same taxation rules apply to RD accounts, as well.

Is there any penalty for delayed payment of RD instalment?

No, IDFC FIRST Bank does not impose any penalty on delayed RD instalments. Many banks do so, but there is no penalty if you skip an RD instalment for a month here.

Does IDFC FIRST Bank offer mobile banking services?

Yes, IDFC FIRST Bank offers mobile banking services to its customers. It is possible to open your FD using mobile banking channels, as well.

Can you close IDFC FIRST Bank FD online?

Yes, it is possible to close your FD online through internet banking and mobile banking channels. Foreclosure of deposits is also possible.

Does IDFC FIRST Bank give loans against FDs?

Yes, Customers can get loans and overdrafts against IDFC FIRST Bank FDs. However, the purpose of the loan should not be for agricultural or plantation activities and investment in the real estate business.

Which is a better option, premature closure or loan against FD?

It depends on individual preference. If your requirement is for a short period, it is better to opt for a loan against your FD. It is advisable to go for premature closure if you have a long-term requirement.

Can you avail premature payment of deposit under the Tax Saving Scheme?

In normal circumstances, premature payment is not allowed on Tax Saving Deposit products. In the case of the death of the depositor, the nominee can claim premature payment of the Tax saving deposit.

OTP is sent to your mobile number

Enter OTP

Resend OTP