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FAQ > Fixed Deposit FAQ

Fixed deposit queries |IDBI Bank Fixed deposit FAQ's

Q1 What is the minimum and maximum tenor for which Retail Term Deposit can be kept with IDBI Bank?
  The minimum and maximum tenor for general/Senior citizen is 15 days and 20 years, respectively.
Q2 What is the minimum and maximum amount for which a Retail Term Deposit can be made with IDBI Bank?
  The minimum amount is Rs.10,000/- and the maximum amount under Retail Term Deposit is Rs.99,99,999/-
Q3 What is the frequency of compounding under cumulative/reinvestment option in the Term Deposit of IDBI Bank?
  The interest is compounded on a quarterly rest under cumulative/ reinvestment option
Q4 What is the interest rate applicable for Term Deposits?
  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.
Q5 What interest payment options are available under Term Deposit with IDBI Bank?
  Interest payment on Monthly (discounted), Quarterly and Annual rest is available under IDBI Bank Term Deposit.
Q6 Are the interest rates same under all interest pay out or cumulative/ reinvestment option?
  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.
Q7 Is the Term Deposit exempt from Tax or any tax rebate available under any Term Deposit Option?
  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.
Q8 Does the Bank offer any special interest rate for Senior Citizen on its Term Deposits?
  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.idbi.com 
Q9 While opening Fixed Deposit account, which documents are required to be submitted?
  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.
Q10 If I have an existing Customer ID, do I need to go through the procedure and formalities of account opening again?  
  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'
Q11 When do I become liable for TDS?
  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.
Q12 When is TDS done?
  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.
Q13 Does any change or enhancement in my deposit portfolio affect TDS liability?
  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.
Q14 At what rate is TDS deducted?
  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.
Q15 Is there any Threshold limit for TDS on NRO deposit interest?
  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.
Q16 How and when can I apply for exemption on TDS?
  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

     

Male

Female

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.
Q17 When does the Bank issue a TDS Certificate?
 
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.

Q18 Can the senior citizen account be opened in a joint account with a non-senior citizen?
  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.
Q19  What documentation is required to open a senior citizen FD?
  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:
      BulletPassport
      Bullet Driving License
      Bullet Pension Payment Order
      Bullet Government ID Card
      Bullet School Leaving Certificate
      Bullet Life Insurance Policy
      Bullet Birth Certificate
Q20  I am an existing customer; do I need to apply for a separate Customer ID to avail of this facility? 
  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.
 
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