IDFC Bank (Infrastructure Development Finance Company) is one of the new entrants in the banking sector. It was incorporated in 1997 and registered with the RBI in 1998 as NBFC (Non-Banking Financial Company). The organization became a public financial institution in 1999. It started operations in October 2015 after getting the in-principle approval from RBI in July 2015. It operates in the field of personal banking, business banking, infrastructure financing and rural financing.
IDFC Bank is the first ever bank to launch cashless digital merchant solutions linked with Aadhaar. The bank stands out from the league of other banks as it provides a range of additional features such as high flexibility, complementary savings account, no penalty on early closures, higher interest rates, etc.
Investors can deposit money in the IDFC fixed deposits for a fixed tenure and earn interests at a higher rate. Deposits vary from a minimum of 7 days to a maximum of 10 years. Interest rates offered by the bank for up to 6 months are on simple interests whereas depositors get the benefit of quarterly compound interest on deposits made for more than 6 months. The compound interest is calculated in each quarter and the amount is added to the principal amount. Thus, interest is paid on the interest received in the last quarter.
IDFC bank also has provisions for monthly interest payouts. In such cases, the interest is evaluated for the quarter and paid every month at a rate lower than the standard FD rate. The bank provides an additional 0.50% interest rate to senior citizens on deposits made for all tenure. However, the additional rate is applicable on investments made below Rs 10 Crores.
- Interests are calculated and compounded on a quarterly basis.
- The bank offers an additional of 0.50% interest rates on all deposits below Rs 1 Crore for senior citizens.
- No penalty is charged on premature or partial withdrawal.
- Depositors having FDs with the bank can borrow loans against fixed deposits at relatively low interest rates.
- The bank has presence in even small towns and cities. The bank has planned to open more branches in areas where IDFC has not been able to make its presence felt.
- Depositors can visit any IDFC branch to know more about fixed deposit schemes and rates.
- FDs can be booked online through internet banking and mobile banking and offline by visiting any branch of the bank throughout India.
- The minimum amount required for investing in fixed deposits is also very low when compared with other big public and private sector banks.
Fixed Deposits are primarily divided into four major categories depending upon the investment type and tenure.
- Short term fixed deposits- These FDs are opened for tenure of 7 days to up to 6 months. The bank pays simple interest on these deposits at rates ranging from 4 – 6.75% for regular citizens and 4.5 – 7.25% for senior citizens.
- Reinvestment fixed deposit scheme- Under this scheme, the interest earned in the previous quarter is reinvested in the scheme and interest is paid on the previous quarter’s interest. The reinvestment scheme is applicable on investments made for a period above 180 days. The interest is compounded quarterly. Interest rates vary from 7.00 – 7.50% for regular citizens whereas it is 7.50 – 8.00% for senior citizens.
- Quarterly payout FD scheme- This scheme is applicable on deposits having tenure more than 180 days. Under this scheme, interests compounded quarterly are paid to the depositor on a quarterly basis. Interest rates offered on these schemes vary from 7.00 – 7.50% for regular citizens and senior citizens get interests ranging from 7.50% - 8.00%.
- Monthly payout FD scheme- Depositors can choose this scheme and get their interest paid out on a monthly basis like pension plans. The minimum tenure is 180 days and interests rates offered on these schemes vary from 7.00 – 7.50% for normal citizens and the rate for senior citizens lie between 7.50% and 8.00%.
Any person who has a savings account in IDFC Bank is eligible for fixed deposit schemes. In case the investor does not have a savings account, the bank offers FD schemes to the depositor and provides a complementary savings account to him. Senior citizens residing in India and who have deposited amount less than Rs 10 Crores in one of the schemes are eligible for additional senior citizen rates. Senior citizens not residing in India are not eligible for these benefits. The bank offers them interest rates similar to regular citizens.
Depositors having a savings account do not have to provide any other documents for booking a fixed deposit plan. However, senior citizens who want to avail benefits of senior citizen rates, have to submit valid proof stating their age. Depositors have to provide any one of the below mentioned documents as proof- Aadhaar, PAN, voter ID, driving license, passport, etc.
Tax Saver fixed deposits allow depositors to save a maximum of Rs 1,50,000 on their taxable income. This tax benefit is applicable under Section 80C of the Income Tax Act, 1961. The minimum deposit limit on the tax saver scheme is Rs 10,000 and the maximum limit is Rs 1,50,000. These deposits have a lock-in period of 5 years and no premature or partial withdrawal is allowed in these schemes. IDFC Bank offers 7.20% interest rates on Tax Saver FD schemes for regular citizens whereas senior citizens get 7.70% interest rate on deposits.
Fixed Deposit Calculator is a tool that takes a set of inputs from the user and displays the interest amount and the maturity amount that a depositor will receive after the maturity period. Following inputs should be provided by the investor:
- Senior Citizenship- The user has to select whether he is a senior citizen or not. Senior citizens get an additional of 0.50% interest rate on deposits below Rs 10 Crores.
- Deposit Amount- The amount that a depositor intends to invest in a fixed deposit scheme is known as the deposit amount. The minimum investment amount is capped at Rs 10,000.
- Fixed Deposit Type- The investor has to choose the fixed deposit type in which he wants to invest money. There are four types of FD schemes- Short Term Scheme, Reinvestment Scheme, Quarterly Payout Scheme and Monthly Payout Scheme.
- FD Tenure- The period for which the deposit has been submitted is known as the fixed deposit tenure. It can vary from a minimum of 7 days to a maximum of 10 years. Tenure for Tax Saving FD scheme is 5 years and no premature withdrawal is allowed in this scheme.
After the investor enters the above mentioned details correctly, the tool displays the following results instantly:
- Maturity Date- The FD calculator displays the day on which the fixed deposit of the investor will mature and the depositor will get his money back.
- Total Interest- Based on inputs, the fixed deposit calculator displays the interest amount that the depositor will earn at the time of maturity.
- Maturity Amount- Maturity amount is the arithmetic sum of the principal amount invested and the interest earned during tenure of the FD scheme.
- Interest Rate- The calculator also displays the interest rate of the FD scheme. Small details such as additional interest rates and other details are also mentioned.
- Apply Button- After knowing the interest amount on his investment, the investor can deposit his money in this scheme using the Apply button provided at the end of the calculator.
- Investors can also download the result, mail it to someone or get the result printed.
What is the minimum and maximum amount that can be invested in IDFC Bank fixed deposits?
The minimum amount that can be deposited in any FD scheme is Rs 10,000. Depositors can deposit up to Rs 10 Crores under these schemes. However, depositors can submit a maximum of Rs 1,50,000 in Tax Saver FD schemes.
What is the minimum and maximum tenure for which the deposit is made?
The minimum tenure for FD schemes is 7 days whereas the maximum tenure for which fixed deposits are booked is 10 years. Tax Saver fixed deposits have a lock-in period of 5 years with no premature withdrawal.
Do senior citizens get additional interest rates on deposits?
Senior citizens get an additional of 0.50% on deposits made below Rs 10 Crores. To avail these rates, the depositor gas to provide the age proof and he should be an Indian resident. Non-resident senior citizens do not get these additional benefits.
How are interests paid depending on the FD tenure?
Interests are calculated as simple interests for deposits having tenure less than 180 days. Investments made for more than 180 days attract compound interests and the interest is paid on a monthly or quarterly basis.
How can IDFC Bank FDs be booked?
IDFC Bank fixed deposits can be booked both online and offline. Investors can book fixed deposits online through internet banking or mobile banking whereas they can visit any branch of the IDFC Bank throughout the country to invest their money in fixed deposits.