Fixed Deposit

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

Senior Citizens earn additional interest of 0.5% per annum on deposits below ₹10 Crore.

This deposit is an FD with a lock-in period of 5 years, without the option of pre-mature withdrawal facility. Customers can avail tax benefits under section 80C of the Income Tax Act, 1961.

An FD up to ₹1,50,000/- 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 your PAN Card is submitted at the time of opening a Savings Account, it is not required again. However, if you don’t have a PAN, you will have to submit Form 60.

If you open Fixed Deposit without a PAN Card, these are the following 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 the interest earned is more than ₹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 Accounts 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 customers 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 ₹50,000/- held with the bank. Let’s assume that on a particular day, the balance in his Savings Account is ₹30,000/-, and he issues a cheque for ₹50,000/- in his account and it has now come for clearing. In this instance the shortfall of ₹20,000 (Account Balance – Obligation Amount issued as a cheque), will be utilized from the linked FD account to clear the cheque.

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 scheme.

FD accounts that are booked through Sweep-Out option, the Sweep-In is enabled automatically.

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 that was booked last or recently.

Only the deposit principal amount will be considered for a Sweep-In facility.

One of the many Fixed Deposit tax benefits is that the Bank can deduct TDS on the FDs booked. 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

If you would like to open Fixed Deposits with a value of more than or equal to ₹2 Cr, please visit our nearest IDFC FIRST Bank Branch.

Interest on deposits are calculated either as simple interest, or compound interest in case of re-investment.