Know the Benefits of IDBI Bank Fixed Deposit Schemes

One of the major government-owned banks in India, IDBI stands for Industrial Development Bank of India. It was established in 1964 by an act of parliament help the developing Indian industry. IDBI offers its customers products and services like Savings Account, Flexi Current Accounts, Lockers, Flexi Deposits, Loans and Cards among other extensive offers.

Like other banks in India, IDBI also provides fixed deposits at great interest rates that help its customers get the most out of their savings with the bank.

Fixed Deposits have proved to encourage a healthy savings habit. They are also proven to be good options to build up a rainy day fund. Market trends have nothing to do with fixed deposits, making them a safe investment choice for many customers.

A fixed deposit is where you can invest your savings for a period of time after which a fixed amount has to be paid back to you at the end of its tenure.

Offering multiple fixed deposit options to you, IDBI bank allows you to park your savings for a fixed amount of time. You have to make a deposit once at the time of opening the account.

A fixed deposit (FD) account offers higher returns on their savings than a usual savings account. IDBI bank offers 3 main schemes with highest interest rates on FD:

• Freedom Deposit
• IDBI Bank Suvidha Tax Saving Fixed Deposit
• IDBI Bank Floating Rate Term Deposit

Freedom Deposit Features

• You can start your savings for 15 days to 20 years.
• You always have access to your deposits 
• Minimum deposit required is Rs 10,000
• Attractive interest rates depending upon the term you have kept your savings for
• Also available for senior citizens. Extra 0.5% benefit on their deposits for 6 months 2 days and above.
• No penalty fees for premature withdrawals. If there is an instance that requires a premature withdrawal, there will be no charges applied.
• Auto renewal facility on maturity
• Various deposit options
• Choose whether you want interest at a monthly, quarterly or annual basis. This is a great option for those who want regular income at regular intervals. It is automatically renewed on maturity so that there is no loss of time.
• You can get overdrafts against your FDs. The overdraft is given of the least earning Freedom Deposit so that the interest pay-out is less. The overdraft would be up to 90% of your FD held with IDBI and will be set up in your account.
• Link your savings account with your fixed account. It gives you the flexibility of a savings account the high interest rate of a fixed deposit. If you have no funds in your savings account, your FDs can be broken by cheque or card. The last FD will be broken so that the loss is the lowest.

Features of IDBI Bank Suvidha Fixed Deposit Tax Saving

• Door-to-door banking service
• Individuals and members of HUF can deposit
• Deposit accepted for a period of 5 years
• Can deposit an amount up to Rs 1.5 lakhs
• Avail a lump sum at the end of 5 years
• Avail loans like personal, home or educational with minimum paperwork
• You may be able to get tax deductions up to Rs.1, 50,000.

IDBI Bank Floating Rate Term Deposit Features

• Get loans/overdraft against this deposit. Up to 90% of the FRTD amount can be availed after the manager approves it.
• Nomination facility is available free of charge
• Minors can open FD account jointly with his/her guardian because the maturity amount can’t be determined by them.
• Get tax deduction
• No premature withdrawals up to a year
• Senior citizens can open FD accounts with additional interest rate
• Both joint and single ownership accounts allowed
• Minimum amount for this scheme is Rs 10,000
• Maximum amount for this scheme is less than Rs 1 crore
• Minimum period of 1 year and maximum of 20 years

IDBI FD Rates

The bank provides attractive interest rates on fixed deposit accounts. In case of NRO and domestic term deposits, the maximum rate of interest offered is 8.80% and the lowest is 4.50%. But, these rates are applicable on investments lower than Rs 1 crore.

• For Floating Rate Term Deposits, the highest interest rate is 8.86% and lowest is 8.46%.
• The interest rates change according to the tenure and the amount deposited. 

Senior citizens are allowed to open fixed deposit accounts with special interest rates. They can make an investment for a minimum of 15 days and maximum of 20 years. The highest interest rate offered to senior citizens is 9.10% and the lowest is 4.50%.

Benefits on Existing Fixed Deposits

• IDBI Bank allows its customers to renew their fixed deposit accounts after maturity. They are also provided with an auto-renewal facility on the time of maturity.
• Loans can be availed against your fixed deposits under the IDBI Bank Suvidha Tax Saving Fixed Deposit scheme.

Out of all investment options, fixed deposits have always managed to come in handy whenever needed. It is the safest an investment can be. High returns with less risk, what more is needed!