Fixed Deposit (FD)

A Digital Fixed Deposit is a term deposit that allows you to book a fixed deposit without the need of opening a savings account with the bank. It has an end-to-end digital, paperless booking process, giving you an effortless experience, and is a high return investment instrument.

Customer who does not have a Savings Account/existing FD/RD relationship with IDFC FIRST Bank

You need to provide the following details to open a limited KYC FD*

· Your Aadhaar number.

· Mobile number linked to your Aadhaar.

· Your Permanent Account number (PAN), linked to your Aadhaar number.

· A valid email ID.

*Limited KYC FD is an FD where the KYC of the customer is not complete.

Minimum and maximum amounts for which you can book the Digital FD are Rs. 5,000 and Rs. 90,000, respectively. Minimum and maximum periods for which you can book are 7 days to 10 years, respectively. The above amounts and period are subject to change at Bank’s discretion.

What does completion of KYC mean? Why is it required and how can I get it done?

KYC stands for "Know Your Customer" and is a regulatory process that verifies a customer's identity to prevent crime, fraud, and money laundering.

To enjoy full interest on the FDs, you need to complete your KYC at the earliest. Currently for completion of KYC, there are two options available:

         I.  Video KYC. You can complete it during your FD booking journey or you can request for it at a later stage.

       II.  Physical meeting between you and branch staff along with your valid KYC documents*

*KYC documents include original Aadhaar card, original PAN card, recent photograph, and signature in presence of the branch staff.

(i) You will not be able to opt for any other product with the bank.

(ii) You will not be able to open another FD with the bank. Post successful KYC completion, you can book subsequent FDs only through Branch.

(iii) You will be able to book an initial FD of maximum of Rs. 90,000 only

You need to complete the KYC process and fulfil all its requirements with the Bank at your earliest, within stipulated time of 11 months, as indicated by the Bank, failing which Bank reserves the right to close the FD with a prior intimation of 30 days.

In case of Premature Closure of the FD, interest will be paid basis interest rate applicable at the time of booking the FD, for the corresponding period during which the deposit has remained with the Bank. Additionally, if the FD is closed prematurely, would be subject to “Premature Closure Penalty”, as determined by the Bank on the date of the deposit.

No, Digital FD can only be booked under a single name.

No, you will not be able to open more than one Digital FD. However, once you complete your KYC and open a Savings Account, you will be able to open any number of FDs through mobile/net banking.

Yes, we offer flexible pay-out options. You can choose to receive your interest monthly, quarterly, or at maturity. Additionally, there is an option for quarterly compounding, if you prefer to reinvest your interest.

You have an option to add nominee while booking the FD. In case you choose to skip adding nominee during your FD booking process, there is an option to add nominee through IDFC FIRST Bank mobile banking app or by visiting your nearest branch.

Yes, you can foreclose your FD. A penalty of 1% for Premature Closure is charged on the applicable interest rate. For senior citizens, there is no penalty on Premature Closure, which gives the flexibility to access funds whenever needed, without any charge. You can foreclosure the FD through the mobile app or by visiting your nearest branch.

No.

Yes, you can manage all features of your FD, from creation to management and closure, effortlessly through the IDFC FIRST Bank mobile app, with complete control and convenience at your fingertips.

We will email the FD receipt to you in the e-mail ID you have provided during the Digital FD booking process. You can also download it from the mobile banking app.

Senior citizens enjoy a higher rate of interest, of an additional 0.50% p. a. over and above the regular interest rate on their deposits. They also get the benefit of ‘zero penalty’ on early withdrawals, ensuring greater flexibility and returns for their investments.

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

Bank shall recover TDS/Overhead tax (OHT) from the interest amount but if the interest amount is not sufficient to recover TDS/OHT, the same will be recovered from the principal amount of the FD

Wherever the Estimated total Income quoted (refer aggregate of column 16 & 18 for Form 15G & column 15 & 17 for Form 15H) is higher of INR 2,50,000/- and INR 5,00,000/- (In case of senior citizen), the customer has confirmed that he/she has chosen to be governed by the New tax regime.

 

As per Section 194A of Income Tax Act 1961, TDS shall be deducted at the rate of 10% when interest payable or reinvested on FD & RD per customer, across all Branches, is likely to exceed Rs. 50,000/- (or Rs. 1,00,000/- for Senior Citizens) in a Financial Year, unless otherwise exempt under law.

As per Section 139AA of the Income tax Act, 1961, it is mandatory to link Permanent Account Number (‘PAN’) with Aadhaar by June 30, 2023. If PAN is not linked, then the PAN provided by the customer will become inoperative. Failure to link will also attract higher TDS rate of 20%, as may be applicable on the income from the Bank.  Bank will be unable to refund the TDS once deducted.

A fixed deposit account is a form of investment that allows customers to grow their savings at a fixed rate for a fixed period of time. Also called FDs, fixed deposit account interest rates remain unaffected by market volatility. Investors generally invest in FDs for regular returns or as rainy-day fund for unforeseen financial emergencies since FDs offer higher liquidity than most investment options.

The minimum amount required to open Fixed Deposit account at the branches is Rs. 10,000.

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

Senior Citizens earn additional interest of 0.50% per annum on deposits below ₹3 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. You can open it by walking into an IDFC FIRST Bank branch, or after opening a Savings Account via netbanking or mobile banking app.

An FD investment of 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

FDs opened under a UCIC without PAN will be opened with Maturity Instructions of Auto Closure only. Sweep out facility on a savings account without PAN will not be offered

If you open Fixed Deposit without a PAN Card, these are the following implications for customers:

1. TDS will be recovered at 20% (as against 10%).

2. NO TDS credit from the Income Tax department.

3. NO TDS certificate will be issued (As per CBDT circular no: 03/11).

4. FDs opened under a UCIC without PAN will be opened with Maturity Instructions of Auto Closure only

5. Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

Yes, by visiting the Branch.

No, you cannot change the FD tenure in a live FD.

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

As per Section 194A of Income Tax Act 1961, TDS shall be deducted at the rate of 10% when interest payable or reinvested on FD & RD per customer, across all Branches, is likely to exceed Rs. 50,000/- (or Rs. 1,00,000/- for Senior Citizens) in a Financial Year, unless otherwise exempt under law.

As per Section 139AA of the Income tax Act, 1961, it is mandatory to link Permanent Account Number (‘PAN’) with Aadhaar by June 30, 2023. If PAN is not linked, then the PAN provided by the customer will become inoperative. Failure to link will also attract higher TDS rate of 20%, as may be applicable on the income from the Bank.  Bank will be unable to refund the TDS once deducted.

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.

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 or on Fixed Deposits where premature withdrawal is not permitted.

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.

As per Section 139AA of the Income tax Act, 1961, it is mandatory to link Permanent Account Number (‘PAN’) with Aadhaar by June 30, 2023. If PAN is not linked, then the PAN provided by the customer will become inoperative. Failure to link will also attract higher TDS rate of 20%, as may be applicable on the income from the Bank.  Bank will be unable to refund the TDS once deducted.

If you would like to open Fixed Deposits with a value of more than or equal to INR 3 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. You can use our Fixed Deposit interest calculator to understand the returns you might receive.

The interest rates applicable on Fixed Deposits withdrawn before the maturity date, as stated by the RBI, shall be as under:

1. Interest shall be paid at the rate applicable to the amount and period for which the deposit remained with the bank and not at the contracted rate.

2. No interest shall be paid, where premature withdrawal of deposits take place before completion of the minimum period specified i.e. 7 days.

3.A penalty of 1% is charged on Premature Closure on the applicable interest rate. For senior citizens, there is no penalty on Premature Closure.

If a Fixed Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on the matured FD, whichever is lower.

Look for the following features in an FD account:

1. Online fixed deposit accounts offer more convenience and flexibility. You can open IDFC FIRST Bank’s FD accounts directly through the IDFC FIRST Bank mobile banking app.

2. Interest rate is a vital criterion for FDs. Choose a high FD interest rate to grow your savings faster.

3. Ensure the FD you choose has flexible tenure options. Select an appropriate FD tenure after analysing your financial requirements well.

4. Read the terms for premature withdrawal and the penalty to be paid in such a case, if applicable.

5. An overdraft facility is essential in FDs. Unsecured loans are generally more expensive in terms of repayment than loans against FDs.

1. Easily accessible online through IDFC’s mobile app

2. High interest rate

3. Interest payout options

4. Special benefits for senior citizens

5. Flexible tenures

Bank shall recover TDS/Overhead tax (OHT) from the interest amount but if the interest amount is not sufficient to recover TDS/OHT, the same will be recovered from the principal amount of the FD

Wherever the Estimated total Income quoted (refer aggregate of column 16 & 18 for Form 15G & column 15 & 17 for Form 15H) is higher of INR 2,50,000/- and INR 5,00,000/- (In case of senior citizen), the customer has confirmed that he/she has chosen to be governed by the New tax regime.