Fixed Deposits (FDs) have long been a preferred choice for risk-averse investors seeking stable and guaranteed returns. IDBI Bank has launched a special 375-day Fixed Deposit scheme with attractive interest rates, making it an excellent investment option for both regular and senior citizens.
If you’re looking for safe investment avenues that offer higher returns than savings accounts, this limited-period FD scheme could be a great choice.
IDBI Bank’s 375-Day FD Scheme
| Feature | Details |
|---|---|
| Tenure | 375 Days |
| Interest Rate (General Public) | 7.10% p.a. |
| Interest Rate (Senior Citizens) | 7.60% p.a. |
| Minimum Deposit Amount | ₹10,000 |
| Maximum Deposit Amount | No Upper Limit |
| Premature Withdrawal | Available with a penalty |
| Auto-Renewal | Available |
| Tax Implications | TDS Applicable as per IT Act |
| Scheme Validity | Limited Period (Check Official Website) |
| Official Website | IDBI Bank |
IDBI Bank’s 375-day FD scheme is an excellent short-term investment option, offering high interest rates, low risk, and guaranteed returns. Whether you’re a working professional, senior citizen, or homemaker, this FD scheme provides a secure and rewarding investment.
Why Choose IDBI Bank’s 375-Day FD Scheme?
This special FD scheme from IDBI Bank offers higher interest rates compared to regular FDs, making it a lucrative investment option. Here’s why you should consider it:
1. Attractive Interest Rates
IDBI Bank provides an interest rate of 7.10% p.a. for regular customers and 7.60% p.a. for senior citizens. Compared to regular savings accounts (which offer around 3-4% p.a.), this FD offers significantly higher returns.
2. Low-Risk Investment
Fixed Deposits are among the safest investment options, as they provide assured returns without market fluctuations. IDBI Bank’s FDs are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring safety up to ₹5 lakh per depositor.
3. Short-Term and Flexible
The 375-day tenure makes it an ideal choice for investors looking for short-term investments with better returns. Unlike traditional 5-year FDs, this scheme provides liquidity in just over a year.
4. Suitable for All Investors
Whether you’re a working professional, retiree, or a homemaker, this FD scheme is a risk-free way to park surplus funds. Senior citizens benefit from an additional 0.50% interest rate, ensuring better financial security.
see also: New Income Tax Rules on Savings Account Deposit and Withdrawal Limits
Step-by-Step Guide: How to Invest in IDBI Bank’s 375-Day FD
Step 1: Check Eligibility
To invest in this FD scheme, you need to be:
- An Indian resident or an HUF (Hindu Undivided Family)
- A senior citizen (60+ years old) to avail additional interest benefits
- A business entity or trust (in some cases)
Step 2: Choose Investment Amount & Tenure
- The minimum deposit amount is ₹10,000, and there’s no upper limit.
- Opt for the 375-day tenure to avail the highest returns under this scheme.
Step 3: Open an FD Account
You can apply via:
- Online Banking: Log into your IDBI Bank Net Banking account and select the Fixed Deposit option.
- Mobile Banking: Use the IDBI mobile app to create an FD.
- Visit a Branch: Go to your nearest IDBI Bank branch with KYC documents.
Step 4: Submit KYC Documents
Special FD: The Time Limit for Special FD of These Banks Is Ending Soon, Better Rates Are Available
- Aadhaar Card & PAN Card (for identity verification)
- Address proof (Utility bill, Passport, etc.)
- Recent passport-size photograph
Step 5: Fund the FD Account
- Transfer funds through Net Banking, Mobile Banking, or Cheque.
- If you’re opening at a branch, you can deposit cash or issue a cheque.
Step 6: Get FD Receipt & Track Investment
After the successful deposit, IDBI Bank will issue an FD receipt. You can track your investment via Net Banking or the Mobile App.
Premature Withdrawal & Penalty Details
If you need to withdraw before the 375-day tenure, the bank imposes a penalty of 1% on the applicable interest rate. This means you will get a slightly reduced interest rate if you choose early withdrawal.
However, if you hold the FD until maturity, you will receive the full promised interest rate.
Comparing IDBI Bank’s 375-Day FD With Other Bank FDs
| Bank | Tenure | General Public Interest Rate | Senior Citizen Interest Rate |
|---|---|---|---|
| IDBI Bank | 375 Days | 7.10% p.a. | 7.60% p.a. |
| SBI | 400 Days | 6.80% p.a. | 7.30% p.a. |
| HDFC Bank | 365 Days | 7.00% p.a. | 7.50% p.a. |
| ICICI Bank | 380 Days | 6.75% p.a. | 7.25% p.a. |
Verdict: IDBI Bank’s 7.10% interest rate makes it one of the best FD schemes for short-term investors.
see also: The Best Investment for Secure Returns and High Interest
IDBI Bank’s 375-Day FD Scheme FAQs
1. Can I extend my FD tenure beyond 375 days?
Yes, you can renew your FD upon maturity, but the interest rate will depend on the bank’s prevailing rates at that time.
2. What happens if I don’t withdraw my FD after maturity?
IDBI Bank provides an auto-renewal option, where your FD gets automatically renewed for the same tenure at the prevailing interest rate.
3. Can NRIs invest in this FD scheme?
No, this 375-day FD scheme is only available for Indian residents.
4. How is the interest earned taxed?
The interest earned is taxable under Income Tax laws. If interest income exceeds ₹40,000 (₹50,000 for senior citizens), TDS (Tax Deducted at Source) will be applied.
5. How can I avoid TDS deductions?
If your total income is below the taxable limit, you can submit Form 15G (for individuals) or Form 15H (for senior citizens) to the bank to avoid TDS deductions.
