IDFC FIRST Bank Fixed Deposit

A Fixed Deposit is an account where money is deposited for a specified period and the interest rate does not fluctuate during the period of the deposit.

The minimum amount required for opening a Fixed Deposit is Rs. 10,000/-

Yes, the Fixed Deposit can be withdrawn partially, penalty on premature withdrawal would be subject to 'Premature Closure Penalty' as prescribed by the Bank on the date of deposit.

Customer aged 60 years or above will be eligible for Senior Citizen’s Fixed Deposit.

Senior Citizen’s Fixed Deposit earn additional interest of 0.5% per annum on deposits below Rs 10 Crore.

Tax Saver Fixed Deposit is a Fixed Deposit with a lock-in period of 5 years without the option of pre-mature withdrawal facility. By availing for a Tax Saving Fixed Deposit customer can avail tax benefits under section 80C of the Income Tax Act, 1961.

Fixed Deposit upto Rs. 150,000/- booked during the financial year is eligible for exemption under Section 80C.

In the case of joint deposits, the Tax benefit under 80C will be available only to the first holder of the deposit.

If PAN Card is submitted at the time of Savings Account opening, it is not required again. However if you don’t have a PAN, you will have to submit Form 60.

In the absence of PAN Card, following are the implications for customers:

• TDS will be recovered at 20% (as against 10%).
• NO TDS credit from the Income Tax department.
• NO TDS certificate will be issued (As per CBDT circular no: 03/11).
• Form 15G/H and other exemption certificates will be invalid and penal TDS will apply.

If interest earned is more than Rs. 40,000 in a financial year, the bank will deduct tax (TDS) at 10% and pay to the government.

The Sweep-In facility enables customers to link existing Term Deposit to Savings or Current Account held with the bank. In case of an emergency the shortfall in the account is swept in from the linked Term Deposit in the units of Rs. 1/-, thereby giving customer the convenience of getting payments processed with ease. Let's take an example to illustrate how the Sweep-In facility works: Mr. Ramesh has availed Sweep-In facility on his existing Term Deposit of Rs. 50,000/- held with the bank. Let’s assume that on a particular day, the balance in his Savings Account is Rs. 30,000/-, and he issues a cheque for Rs. 50,000/- in his account and it has now come for clearing. In this instance the shortfall of Rs. 20,000 (Account Balance – Obligation Amount issued as cheque), will be utilized from the linked Fixed Deposit to clear the cheque.

Yes, the sweep-in facility can be availed for all or multiple deposits held with the bank, except on Tax Saver Deposit.

The system will first sweep-in amount from the deposit which was booked last or recently.

Only the deposit principal amount will be considered for sweep-in facility.

The sweep-out facility enables customers to earn higher interest on the additional balances maintained in the Savings Account /Current Account by automatically booking the pre-defined amount as a Fixed Deposit.

Fixed Deposits that are booked through sweep-out option, the sweep-in is enabled automatically.

YES, the entity would need to submit either Form 15G OR Certificate of Tax exemption issued under Section 197 of Income Tax Act, 1961.However, PAN would be mandatory. In absence of PAN, Form 15G and other exemption certificates would be invalid & penal TDS would be applicable

For Fixed Deposit with value of more than or equal to INR 2 Cr, please visit our nearest IDFC FIRST Bank Branch.

Interest on deposits would be calculated either as Simple Interest or compounded interest in case of re-investment.