Terms and Conditions - Terms and condition applicable to term/fixed deposit and recurring deposits accounts only
"Traditional Term/Fixed Deposits" are Term/Fixed Deposits where interest is paid at regular intervals, i.e., Quarterly or Monthly, as requested by the Customer/s at the time of creating the Term/Fixed Deposits.
"Cumulative Term/Fixed Deposits" are Term/Fixed Deposits where interest is compounded quarterly and reinvested with principal amount.
"Maturity Value" shall mean the amount payable to the Customer at the end of the term of the Term/Fixed Deposit subject to deduction of any tax as may be applicable.
The Customer is required to specifically apply for deposit related products in accordance with specific terms and conditions as mentioned in the Deposit Application form applicable to the same from time to time and subject to directives laid down by the RBI from time to time and all other applicable laws.
The Customer agrees that in case of a joint account having mode of operation as anyone or survivor, anyone of the account holders, may create a Term/Fixed deposit/ recurring deposit by placing a request through branches, ATM, phone banking, Internet Banking or mobile banking channel's as made available by IDFC FIRST Bank from time to time. The Customer agrees that such a Term/Fixed deposit/recurring deposit shall be created in the name of all the account holders with mode of operation as anyone or survivor and the Customer shall be bound by the terms and conditions applicable to such Term/Fixed deposit/recurring deposit or to a Term/Fixed Deposit created by renewing / auto-renewing a Term/Fixed Deposit. The Customer also understands that for availing a loan against such Term/Fixed Deposit or for premature termination of such a Term/Fixed Deposit/recurring deposit or any Term/Fixed Deposit created by renewing / auto-renewing a Term/Fixed Deposit, consent of all the Term/Fixed Deposit/recurring deposit holders would be required in the manner specified by the Bank either at the time of making request for the loan or terminating the deposit or through a one-time consent. The Customer shall not raise any dispute / claim against the Bank for creating/closing a Term/Fixed Deposit/recurring deposit in the manner specified above and shall keep the Bank indemnified against any loss / harm suffered by the Bank with respect to any dispute / claim raised by the Customer or any third party.
Recurring Deposit (RD) - Recurring Deposit is a special type of term deposit which enables a depositor, particularly in a fixed income group, to save by paying into the account an agreed fixed amount monthly over a stipulated period.
Period of RD - Recurring Deposit accounts can be opened for a minimum period of 6 months and in multiples of 3 months thereafter, up to a maximum of 120 months.
Interest Payment / TDS Liability on RD
The interest on Recurring Deposits will be calculated by the Bank in accordance with the policy of the Bank and as per Law or Regulation.
Interest on Recurring Deposit is applied on a quarterly compounding basis
It is important to note that the Finance Act 2015 has expanded the definition of Term deposits to include Recurring Deposits as well and modified the interest exemption limit of Rs. 10,000/- per Branch to read as Rs.10,000/- per “Bank” wef 01/06/15. TDS liability would now be determined based on the total interest accrued for all deposits tagged to the Customers’ Unique Customer Identification ID (CIF ID), if the exemption limits of some customers are breached (despite submission of the Forms 15G/ H), would be liable for deduction of tax. Recently, the Finance Act 2019 has modified the aforesaid interest exemption limit from Rs.10,000/- to Rs.50,000/- for senior citizens and Rs.40,000/- for other customers
Payment of instalments
The instalment amount once fixed cannot be altered at any later date, except as provided in the product offering;
If more than one instalment is overdue at the time of payment, the paid instalment, if sufficient to cover only that one instalment will be appropriated towards the first or earliest instalment overdue;
Partial payment of instalments will not be permitted, unless provided in the product offering and agreed in writing by the Bank.
Lock in Period
The Recurring Deposit account has a minimum lock-in period of one month or as provided in the product offering and agreed in writing by the Bank;
In the case of premature closure within a month, no interest shall be paid to the depositor and only his principal amount shall be returned, unless provided in the product offering and agreed in writing by the Bank.
Interest is paid only on maturity;
When all the stipulated instalments are paid by the Customer, the accumulated amount is repayable together with accrued interest on the date of the maturity;
However, where the last instalment is received by the Bank after the due date, the accumulated amount together with interest will become repayable one month after the date of receipt of such instalment irrespective of the maturity date of the deposit;
The maturity amount mentioned on the Recurring deposit confirmation advice is subject to the payment of all instalments on time; and
The terms herein will be subject to the terms of the product offering and as agreed in writing by the Bank.
Premature Withdrawal and Penalty
Grace period of 5 days to pay instalment will be available to Customer. After 3 non-payments, Recurring Deposit will be closed and proceeds credited to Savings Account;
Premature withdrawal of Recurring Deposit is allowed and penalty, if any, on the rate applicable on the date of the deposit for the period for which the deposit has run or the contracted rate whichever is lower.
In case of fixed deposits above 1 Cr no pre-mature withdrawal shall be allowed
80 C Term/ Term/Fixed Deposits
Single holder type deposits -- The single holder type deposit receipt shall be issued to an individual for himself or in the capacity of the Karta of the Hindu undivided family;
Joint holder type deposits -- The joint holder type deposit receipt may be issued jointly to two adults or jointly to an adult and a minor, and payable to either of the holders or to the survivor: Provided that in the case of joint holder type deposit, the deduction from income under section 80C of the Income Tax Act, 1961 (the "Act") shall be available only to the first holder of the deposit.
The minimum amount of Deposit which can be placed with the Bank shall be Rs 10,000 and the maximum amount of Deposit which can be placed shall be Rs.1,50,000 in multiples of Rs. 1.
Only individuals and HUF – Indian residents are eligible for applying for the Deposit.
The maturity period of a Deposit receipt of any denomination shall be five years commencing from the date of the receipt. There shall be no auto renewal facility for the Deposit.
No Deposit shall be encashed before the expiry of five years from the date of the respective receipt.
Conversion of any other Term/Fixed Deposit/s placed by the Deposit holder with the Bank to the Deposit is not permissible.
Permanent Account Number (PAN) is mandatory to open a 80 C Term/Fixed Deposit.
The Deposit shall not be pledged to secure any loan or as security to any other asset.
Payment of Interest on Term/Fixed Deposit
Interest on Term/Fixed Deposits is reckoned/ paid at quarterly / monthly intervals and at the rate/s applicable as on the value date of opening of Term/Fixed Deposits, as the case may be, in accordance with the rate fixed by the Bank from time to time as also directives issued by RBI.
The interest may be paid either in a lump sum at the time of maturity or it may be paid every quarter or every month in accordance with the regulatory payments for payment of interest on the Term/Fixed Deposit. Where the interest is to be paid by the Bank in lump sum at the time of maturity, the Term/Fixed Deposit shall bear the yearly rate of interest on the Term/Fixed Deposit.
The Bank may announce special rates for senior citizens and staff.
Methodology of interest calculation
Interest rates are money market (i.e. simple interest) rates for tenors upto 6 months and quarterly compounded rates for tenors of 6 months and above. However, in case of Traditional Term/Fixed Deposits interest rates are money market (i.e. simple interest) rates irrespective of the tenor.
The method of calculation on interest on a Term/Fixed Deposit, both Traditional and Cumulative deposits is as under:
For Traditional Term/Fixed Deposits with quarterly payouts interest is calculated based on annual rates (simple interest). However, in case of monthly payouts, interest is paid at a discounted value. For Traditional Term/Fixed Deposits with quarterly/monthly / on maturity payout, interest is calculated on the principal amount for actual number of completed days.
For Cumulative Term/Fixed Deposits, interest is compounded quarterly on completion of exact quarters. For the broken period beyond completed quarters, simple interest is calculated on the cumulated deposit amount for remaining number of days.
In case of premature withdrawal the interest is calculated on the principal amount for completed quarters and then for the balance period, interest is calculated for completed months and further for incomplete month on actual number of days.
For the purpose of interest calculation financial year is taken to consist of 365 days, except in a leap year when it is taken to consist of 366 days.
Renewal: In the absence of any special instructions, the deposit will be renewed on maturity for a like term at the then applicable interest rates.
Tax Deduction at Source: Tax is deducted at source on interest on Term/Fixed Deposit held by the resident if the interest paid or payable by the branch for the financial year exceeds the threshold limit specified by Income Tax Act, 1961. Currently, the threshold limit for this purpose is Rs. 40,000 p.a. for non-senior citizens and Rs. 50,000 p.a for senior citizens
For Traditional FD (with quarterly / monthly interest payment), tax is deducted on each interest payment and on interest accrued on March 31st of every year. For Cumulative FD, tax is deducted on interest accrued on March 31st of every year and on maturity. The TDS amount calculated on the accrued interest is remitted to the tax authorities on behalf of the customer by the Bank. The interest on the TDS amount from April 1st till maturity of the deposit is adjusted from the interest payable to the client.
As per provisions of Finance Act 2009, w.e.f April 01, 2010, valid PAN is required to be submitted by all customers whose tax needs to be deducted. In the absence of a valid PAN, tax will be deducted at the prevailing rate or 20% whichever is higher. Also, Form 11G/H shall not be treated as valid unless PAN is mentioned in such forms.
In case the deposit holder does not want the Tax to be deducted at source, they may submit Form 11G / 11H (other than company, firm or co-operative society)/ Exemption Certificate under Section 197 (in case of all holders)/ or any other Tax Exemption Certificate with the Bank. Such form or tax exemption certificate has to be submitted every financial year for each fixed / recurring deposit held and on each renewal of the deposit.
In case of non-resident FD holders tax shall be deducted at source as per the provisions of section 195 of Income Tax Act, 1961.
Date of Term/Fixed Deposit
The effective date of Term/Fixed deposit shall be the date on which the amounts of deposit placed are realized by / credited to the Bank. No Term/Fixed deposit receipt / advise will be issued in anticipation of realisation of cheque/s in relation to any deposit and will be issued only on actual receipt of payment / deposit monies.
In case requests for opening Term/Fixed deposits are received on a Sunday or holiday through electronic channels like Internet Banking, phone banking, ATM or any other electronic channel, the Term/Fixed Deposit will be opened with the value on the next Working Day.
In case requests for opening Term/Fixed Deposits are received on Sunday from customers walking into a branch working on Sunday, the Term/Fixed Deposit will be opened on the next Working Day with the value.
Term/Fixed Deposit Advice: At the time of placing the Term/Fixed Deposit an Advice shall be issued by IDFC FIRST Bank. In cases where Auto Renewal or Auto Closure option is selected by the Customer, an electronic Term/Fixed Deposit Advice shall be sent to the Customer on his registered email ID updated with the Bank. If the email ID of the Customer is not registered with IDFC FIRST Bank then physical Term/Fixed Deposit Advice shall be issued to the Customer.
Premature/partial closure of Term/Fixed Deposits:
In the event of the Term/Fixed Deposit being closed before completing the original term of such deposit, interest will be paid at the rate applicable on the date of deposit for the period for which the deposit has remained with the Bank or the contracted rate, whichever is lower. The deposit may be subject to penal rate of interest as prescribed by the Bank on the date of deposit.
For the deposit amount remaining after the part withdrawal, interest rate remains the same i.e. the rate at which the FD was originally booked.
In case of the Term/Fixed Deposit being prematurely closed for the purpose of reinvestment into another scheme of Term/Fixed Deposit, the existing deposit would be subject to penal rate of interest as prescribed by the Bank on the date of deposit. Interest will be paid for the period the deposit has remained with the bank. The interest rate prevailing on date of re-investment of term deposit will be applicable for the new term deposit.
The single holder or the joint holders of the Deposit may, by filing in necessary particulars in the prescribed form at the time of making the Deposit, nominate any person who, in the event of death of the single or both the joint holders as the case may be shall become entitled to the Deposit and the payment thereon.
If such nomination is not made at the time of making the Deposit, it may be made by the single holder, the joint holders or the surviving joint holder, as the case may be, at any time after the Deposit receipt is issued but before its maturity, by means of an application in the prescribed form to the officer in charge of the branch of the Bank from which the term Deposit is issued.
In the event of death of the Deposit holder in respect of which a nomination is in force, the nominee shall be entitled at any time before or after the maturity of the Deposit to encash the Deposit. For the aforesaid purpose, the nominee shall make an application to the branch manager of the Bank, supported by proof of death of the Deposit holder.
If a Deposit holder dies and there is no nomination in force at the time of his / her death, the Bank shall pay the sum due to the deceased, to his / her legal heirs.
At the discretion of the Bank, loan against the Term/Fixed Deposit may be given to the depositors, in whose name the deposit has been opened and who are authorised to withdraw the deposit, as per original mandate.
In addition, the Bank Term Deposit Scheme, 2006 issued by the Central Government shall also apply to the Deposit.
For Bulk Deposits, please contact your Relationship Manager.
IDFC FIRST Bank Ltd
KRM Tower, 7th Floor, No. 1,
Harrington Road, Chetpet,
Chennai - 600031, Tamil Nadu,
IDFC FIRST Bank Ltd
Bandra East, Mumbai - 400051,