Overview of the Bank
Industrial Development Bank of India or IDBI is headquartered in Mumbai and is one of the major government-owned banks in the country. The bank was established by an Act of Parliament to provide financial services to the demanding Indian industry, in 1964. The bank offers multiple financial products and services like Savings Accounts, Preferred Banking, Flexi Current Accounts, Flexi Deposits, Lockers, Corporate Payroll Accounts, Cards and loans, among many others. Further, the bank also offers customized banking solutions to its corporate customers. IDBI has a large network of branches spread across the nation. IDBI bank has an international presence in countries including Dubai, Beijing and Singapore.
Like most other banks in India, IDBI Bank also offer term or fixed deposits at extremely competitive interest rates with flexible repayment tenures which can help investors get maximum rate of return on fixed deposits by saving with IDBI Bank. As compared to a regular savings account, a fixed deposit account earns you higher rate of return on fixed deposit savings. Plus, an IDBI fixed deposit account gives you assured returns on your big and small savings. The bank has three attractive interest rates scheme for fixed deposits including the IDBI Bank Suvidha Tax Saving Fixed Deposit, Freedom Deposit and IDBI Bank Floating Rate Term Deposits. Though, Fixed Deposits generally are available only on fixed interest basis, but IDBI Bank Floating Rate Term Deposits are for those who wish to avail floating rates.
Interest Rates (in %)
|Regular Citizens||Senior Citizens|
|6 months 1 day to 270 days||6.00||6.00|
|271 days to < 1year||6.50||6.50|
|>1 year to 2 years||6.50||7.00|
|>2 years to < 3 years||6.00||6.50|
|3 years to < 5 years||6.00||6.50|
|> 5years - 7years||6.00||6.50|
|>7 years - 10 years||6.00||6.50|
|>10 years - 20 years||6.00||6.50|
Note: Interest rates mentioned above are applicable on deposits less than Rs 1 Crore, with effect from 16th June 2017. The rates are subject to change without prior information.
IDBI Bank NRE Fixed Deposit Rates
The interest offered on an NRE fixed deposit depends majorly on the duration for which the deposit is made with the bank. The interest can go up to 7.25% per annum depending on the bank’s policy. IDBI Fixed Deposits for NRIs is a good option because as of now, in India, interest earned on an NRE deposit is not taxable.
Under section 80C of the Indian Income Tax Act of 1961, you can avail a tax deduction by investing in a Tax Saver Fixed Deposit and the investor can claim a deduction of up to Rs. 1, 50,000 on their payable tax. IDBI tax saver deposit scheme is offered for a lock-in period of 5 years. IDBI Bank is often listed as one of the top providers of Tax Saver interest rates scheme. Features of a Tax Saver Fixed Deposit are the following below:
- Maturity period available on a tax saver FDs is 5 years.
- You can get tax deductions of up to Rs.1, 50,000.
- Deduction is applicable for members of Hindu undivided family (HUF), individuals, senior citizens and NRIs.
- IDBI bank Tax Saver deposit rates are taxable, deducted at source.
- These accounts can be opened both individually or jointly.
- Premature withdrawal is not allowed on a Saver FD.
- For joint accounts, tax benefit will be availed only by the first holder as per the section 80C of the IT Act.
- You must stick to select private sector banks or PSU banks for safe returns on fixed deposits.
- Though the offered interest rate is the most effective component, but before investing, you should consider other parameters like interest after tax, maturity amount and inflation-adjusted returns among several others.
- Remember, in addition to the deposit period, you need to zero in on the amount to be held in a fixed deposit.
- You must make a comparative analysis before depositing money in any fixed deposit account, for you may get a better offering from the several banks, interest rates and tenures available. You can find best rates for IDBI bank fixed deposit and compare with other FD providers on PaisaBazaar.com.
- Always study the premature withdrawal clauses by the bank you are applying for, as it may vary from one bank to the other.