IDFC FIRST Bank’s Super Account

Super Account is specifically created for corporate entities to ensure the best possible use of funds and earn interest on idle funds by transferring it to a Fixed Deposit.

The Industry first, IDFC FIRST Bank Super account is a unique combination of overdraft facility + fixed deposits + surplus funds. The Super account allows customers to earn a high interest on surplus funds parked in their FD and yet retain the liquidity and flexibility to meet the customer's need. A threshold is maintained (at time of account opening) beyond which the money will be swept out from the Overdraft Account (OD) to book a FD and against the FD, an OD facility of the same amount as the fixed deposit is provided for the customer to enjoy 100% liquidity.

While opening the Super Account, the customer must provide the ‘Initial AMB’ (Average Monthly Balance); AMB = monthly average of (monthly average of Surplus Balance in OD Account + FD Balance – OD utilised).

On a daily basis, funds available in the underlying account above the threshold amount (i.e., 60% of AMB) will be swept-in, and an FD with a tenure of 90 days will be placed.

An OD facility equivalent to the FD booked on that day will be created. OD facility is provided to ensure that the customer has access to 100% liquidity and has the flexibility to use the funds without breakage of FDs.

When the customer makes payments, outflow settlements will follow the below prioritisation:  

4.1. OD balance/utilisation.  

4.2. Surplus balance in the Super Account.

When the customer receives payments, inflow settlements will follow the below prioritisation: 

5.1. Surplus balance is reached up to the threshold set amount.

5.2. OD outstanding is regularised. 

5.3. If account balance goes above the threshold, a new FD is created on the next day.

Initial AMB and threshold must be defined by the customer for the first month. The threshold percentage is 60 percent of the previous month’s average balance (FD + OD). The threshold is reset on a monthly basis, and the amount is calculated as follows: threshold percentage, i.e., 60% × previous month’s AMB (i.e., monthly average of Surplus Balance in OD Account + FD Balance – OD utilized).

Entire amount beyond the threshold will be swept out of the Super Account and be placed in a FD against which an equivalent OD facility will be created.

Amount: Single FD (in multiple of Rs. 1,000) will be created at beginning of day (BOD) of maximum amount of less than ₹20 Cr. In case the FD requirement is more than ₹20 Cr., customers will have to connect with their relationship managers.

IDFC FIRST Bank's rate on the Bank's website, on date of the creation of the fixed deposit will be applicable. Interest will be payable monthly.

Tenor: 90 days (with automatic renewal)

No, Super account is a zero-balance account.

To provide liquidity while continuing to generate returns through a Fixed Deposit (FD), an Overdraft (OD) limit equivalent to the FD principal will be provided for each Super Account. All funds transfers will first be settled from the balance in the OD facility, and then from the surplus balance in the account.

The Interest on amount overdrawn will be charged at the weighted average of the interest rates applicable to the linked fixed deposits. The interest on the overdraft is calculated on the daily outstanding balance from the date of overdraft at the above specified interest rate till such date that the overdraft inclusive of interest/charges is repaid. The overdraft interest accrued shall be debited to the Facility every month.

Illustration of weighted average:

If one fixed deposit (A1) is for Rs.4,00,000/- at 4% (B1) interest and one deposit (A2) for INR 1,00,000/- at 6% (B2) interest rate, then the OD interest rate will be 4.4%

Weighted Average

= [A1*B1% + A2*B2%]/ (A1 + A2)
= [(4,00,000*4%) + (1,00,000*6%)]/ (4,00,000+1,00,000)
= 4.4%

Your fixed deposits will remain untouched and will continue to earn interest at the rate fixed at the time of placement. As the OD limit is already granted against the respective FD, the FD cannot be closed prior to regularizing of the OD balance.

On yearly basis or as decided and informed by the Bank from time to time

Surplus balance in the account + unutilized OD balance.

Customer’s will have access to the IDFC FIRST Bank’s Business Experience Platform (BxP) that will provide a summarized and detailed view of the activities and transactions taking place in the account. The customer will also have access to offline account statements, FD statements, and details on the usage of the overdraft facility and these details can be shared on the registered email IDs of the customer.

The auto-sweep feature in Super Account is automated. This means that funds above a pre-fixed threshold automatically gets converted into Fixed Deposits. Post creation of the FD, a OD facility of the same amount is automatically created for customers usage. 

Lien will be marked on these newly created OD facilities against FD.