Fixed Deposit FAQ
Fixed deposit queries |IDBI Bank Fixed deposit FAQ's
The minimum and maximum tenor for general/Senior citizen is 15 days and 20 years, respectively.
The minimum amount is Rs.10,000/- and the maximum amount under Retail Term Deposit is Rs.99,99,999/-
The interest is compounded on a quarterly rest under cumulative/ reinvestment option
The Interest Rates on term deposit of the bank is subject to change from time to time and the same is provided on the website of the Bank and also available at every branch.
Interest payment on Monthly (discounted), Quarterly and Annual rest is available under IDBI Bank Term Deposit.
The applicable interest rate as indicated in the interest table is applicable for all options of interest payout except monthly (discounted) interest payment option. Under monthly interest payment option, the interest rate discounted to match the applicable interest rate payable at quarterly rests.
Normal Term deposits are not exempt from tax and Interest on Term Deposits is subject to Tax Deduction at Source as per extant Tax laws.
Tax Rebates are available as per extant Tax laws under distinct Term deposit viz. IDBI Tax Saving Deposit.
Yes, an additional markup for Senior Citizen Interest rates is 0.50% for deposits from 1 year and above. This mark-up is subject to change at the discretion of the Bank. You may refer to the interest rates hosted on our website www.idbibank.in
For opening of a Term Deposit Account, the duly filled and signed Account Opening Form (AOF) with photograph/s of the applicants and the KYC documents are required to be submitted. The AOF has to be submitted alongwith the requisite amount for which Term Deposit is proposed to be made. The Details of documents is available in the nearest branches.
No, You need not go through any formalities. You just have to provide the Customer ID, type of deposit and cheque/cash and we will take care of the rest. In case you want to have the deposit as senior citizen and the existing Customer ID is for non senior citizen, then you need to go through the formalities mentioned in 'Open your account'
As per Income Tax Act, 1961 u/s 194A (1) (3) (i) where the amount or aggregate of the amounts of interest credited or likely to be credited or paid during the financial year exceeds Rs.10,000/-, TDS is applicable from the first interest flow.
Note: Deposits held by minors are also subject to TDS. The person in whose hands the minor's income is included can claim the credit for the TDS.
TDS is done at the time of credit of interest to account if the total interest payable to the customer during the financial year is likely to exceed the limit of Rs.10,000/-. Interest is applied on quarterly basis for cumulative FDs and on monthly basis of monthly interest payout FDs.
Yes. If the change or enhancement in your time deposit portfolio including that of earlier portfolio is likely to earn aggregate interest of more than Rs.10,000/- during the financial year, TDS will be applicable on the basis of projected interest.
TDS is deducted at rates as required by section 194A (Resident) and section 195 (NRO) of IT Act 1961 for the following category of account holders. Presently, rates of TDS are as under:
|Account holder||Rate of TDS||Rate of TDS (with surcharge and education cess)|
|Resident Indians- Individuals, Trusts, Associations, HUFs, Firms Indian Companies||10%||10%|
|Non-Resident Indians||30%||* 30.90%|
* Non-resident non-corporate deposit where aggregate payment is less than Rs. 1 crore during the FY 2014-15. In absence of PAN / valid PAN, TDS at higher rate of 20% is applicable.
No. There is no threshold limit applicable for TDS on NRO Accounts, which means TDS will be applied on all interest payment including interest on savings bank deposits, right from very first application.
If your total taxable income during the financial year is not likely to exceed the maximum amount which is not chargeable to income tax,
then you can submit self declaration in Form 15G or 15H (for senior citizens only) to the Bank to ensure non deduction of tax at source.
The declaration has to be given in prescribed format only wherein the valid 10 digit PAN is also required. It may be noted that if the interest payable by
the Bank during the financial year on time deposits is likely to exceed the maximum amount which is not chargeable to income tax, then the Form 15G submitted will be
treated as invalid. In case of Senior Citizens, if the interest payable by the Bank during the financial year on time deposits is likely to
exceed the maximum amount which is not chargeable to tax and deduction(s) under chapter VIA, if any, for which declarant is eligible, then the Form 15H submitted will
be treated as invalid.
The gist of the same is given below:
|Category||Type of Form||Exemption limit|
|a)||Individuals up to age of 60, (This form needs to be submitted at the beginning of each FY)||Form 15G||Rs.2,50,000/-||Rs.2,50,000/-|
|b)||HUFs, Associations, Trusts.(This form needs to be submitted at the beginning of each FY)||Form 15G||Rs.2,50,000/-||Rs.2,50,000/-|
|c)||Individual customer with age 60 years and above but less than 80 years. (Completing 60 years but not completing 80 years during the FY). (This form needs to be submitted at the beginning of each FY)||Form 15H||$ Rs.3,00,000/-||$ Rs.3,00,000/-|
|d)||Individual customer with age 80 years and above. (Completing 80 years during the FY). (This form needs to be submitted at the beginning of each FY)||Form 15H||$ Rs.5,00,000/-||$ Rs.5,00,000/-|
|e)||Others||Exemption certificate issued by Income Tax Officer||As per Exemption Certificate||As per Exemption Certificate|
$ plus deduction under Chapter VIA, if any for which declarant is eligible.
As per Rule 31 of the Income Tax Rules, 1962 the Bank is required to issue TDS Certificate in Form 16A on quarterly basis within fifteen days from the due date for furnishing the statement of tax deducted at source. The due date for issue of TDS Certificate is given below:
|Quarter||Due date for issuing TDS Certificate|
|For the quarter ending June 30th of the financial year||July 30 of the financial year.|
|For the quarter ending September 30th of the financial year||October 30 of the financial year.|
|For the quarter ending December 31st of the financial year||January 30 of the financial year.|
|For the quarter ending March 31st of the financial year||May 30 of the financial year immediately following the financial year in which tax is deducted.|
Further, the Banks are mandatorily required to issue quarterly TDS certificates (Form 16A) generated through TDS Reconciliation Analysis and Correction Enabling System (TRACES). TRACES generates TDS certificates based on PAN of customer. Thus, a consolidated TDS certificate for TDS deducted in all branches of IDBI Bank will be generated.
The account can be opened joint with a non-senior citizen, provided the first account holder is a senior citizen to avail special rates for senior citizen, if any.
While opening the account, the customer needs to provide proof of age - to ensure that account holder is a senior citizen. He can provide any one of the following:
- Driving License
- Pension Payment Order
- Government ID Card
- School Leaving Certificate
- Life Insurance Policy
- Birth Certificate
The existing Customer ID may be used and there is no need to create a separate Customer ID for booking of the fixed deposit.
For new FDs being booked, where you do not have an existing FD or an operative account, you will have to provide complete KYC documents for opening a Fixed Deposit.