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IDFC First Bank Fixed Deposit (FD) Interest Rates

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Mariya Kagdi

Fixed Deposit
IDFC
Income Tax

The merger of IDFC Bank and Capital First in 2019 has created a new bank, namely, IDFC First Bank. It is built on the strength of both institutions and focusing on rural India and digital banking for continued growth in the future. Apart from this, they also offer Fixed Deposit (FD) schemes with varied tenure and interest rates

The most sought-after investment product offered by the Banks are Fixed Deposit schemes as they provide tax benefit under Section 80C of the Income Tax Act. It motivates an individuals to save their wealth and also reduces tax liability.

IDFC First Bank Fixed Deposit Scheme

Most importantly, IDFC First Bank offers a FD Scheme which allows individuals to deposit a part of their savings to create income with the following remarkable features:

IDFC First Bank Fixed Deposit Interest Rates

The following table lists the IDFC First Bank FD interest rates for General and Senior Citizens for amount less than INR 2 crore.

Tenure

FD Interest Rates for General Citizens FD Interest Rates for Senior Citizens
7 days – 14 days 2.75% 3.25%
15 days – 29 days 3.00% 3.50%
30 days – 45 days 3.50% 4.00%
 46 days – 90 days 4.00% 4.50%
91 days – 180 days 4.50% 5.00%
181 days – less than 1 year 5.25% 5.75%
1 year – 499 days 5.75% 6.25%
500 days 6.00% 6.50%
501 days – 2 years 5.75% 6.25%
2 years 1 day – 5 years 5.75% 6.25%
5 years 1 day – 10 years 5.75%

6.25%

As is evident from above, a longer tenure attracts a higher rate of interest. Moreover, IDFC First Bank offers 0.50% higher FD interest rates for senior citizens than for the general citizens.  

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Eligibility Criteria to open IDFC First Bank FD

Listed below are the various entities that are eligible to open an IDFC First Bank FD:

Documents required to open IDFC First Bank FD

New IDFC First Bank customer need to submit the following documents to open a FD Account with IDFC First Bank:

However, existing customers of IDFC First Bank do not need to submit any additional documents to open a Fixed Deposit account, they can simply log into Net Banking and open a FD. 

Tax Benefit on IDFC First Bank Fixed Deposit

The investment objective of fixed deposits is to provides tax benefit under Section 80C of the Income tax Act. It motivates an individuals to save their wealth and also reduces tax liability.

Tax Deducted at Source (TDS) under Section 194A is deducted at the rate of 10% on the interest received on IDFC First Bank FD if the accumulated interest amount exceeds INR 40,000 in a financial year. However, this limit is INR 50,000 for senior citizens.

To claim exemption from TDS, FD holders may declare that the tax on total income earned is zero by submitting Form 15H for senior citizens and Form 15G for the rest.

FAQs

Is it possible to open a fixed deposit of more than INR 2 crore in IDFC First Bank?

Yes, it is possible. You can approach your nearest IDFC First bank branch for more information.

What is the minimum amount that one needs to deposit to open a FD account with IDFC First Bank?

A minimum of Rs. 10,000 needs to be deposited in the IDFC First Bank Fixed Deposit (FD) Account to open an FD.

How long does FDs take to mature?

FD maturity varies between 7 days to 10 years. The investor may chose a maturity date according to their investment goals.

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