IDBI Bank Senior Citizen FD Rates 2025

What is an IDBI Bank Senior Citizen FD?

An IDBI Bank Senior Citizen FD is a fixed deposit scheme tailored for individuals aged 60 years and above. It allows senior citizens and retirees to earn a higher interest rate than standard fixed deposits, helping them grow their savings in a secure way. Interest payouts can be chosen as monthly, quarterly, half-yearly, or cumulative at maturity, depending on the depositor’s preferences.

Check the latest IDBI Bank FD interest rates and read on to know more about the latest rates, key features, and steps to book an IDBI Senior Citizen FD.

Key Benefits of IDBI Bank Senior Citizen FD

Here are some key advantages offered to senior citizens by IDBI Bank:

• Flexible Tenure Options: IDBI Bank allows senior citizens to choose deposit periods ranging from 7 days to 20 years, helping them plan investments according to their financial needs and goals.
• Auto-Renewal Facility: Senior citizens who find it difficult to visit the branch or have limited experience with digital banking can benefit from IDBI Bank’s auto-renewal facility. The fixed deposit will be automatically renewed at the prevailing interest.
• Sweep-in/Sweep-out Feature: IDBI Bank offers a flexi FD for senior citizens. It links the savings account with a fixed deposit. If the savings account balance goes above ₹15,000, the extra amount moves into a 1-year FD. This earns higher interest automatically. If the balance falls below the limit, funds are taken from the FD in ₹1,000 units. The last deposit is withdrawn first. Senior citizens get 0.50% extra interest on FDs of one year or more. 
• Premature Withdrawal: IDBI Bank senior citizen FDs have a minimum lock-in period of one year. After one year, early withdrawal is allowed with a penalty. The interest rate will be based on the average benchmark rate of the last quarter. It will include the markup for the completed tenure and a 1% penalty. For example, if a 2-year FD is closed after 1 year and 110 days, the interest will be based on the 1-year rate minus 1%. Interest will be calculated as per the bank’s fixed deposit rules.

IDBI Bank FD rates for senior citizens

Here’s a quick overview of the IDBI Bank FD interest rates for senior citizens for different tenures:

Retail Term Deposits (Less than ₹3 Crore)

*IDBI Bank FD interest rates w.e.f. May 16, 2025

Utsav Callable Fixed Deposit

*IDBI Bank FD interest rates w.e.f. May 16, 2025

IDBI Chiranjeevi – Super Senior Citizen FD

*IDBI Bank FD interest rates w.e.f. May 16, 2025

Note: Compare FD interest rates across banks to choose the best option for your needs.

How to Open an IDBI Bank Senior Citizen FD?

IDBI Bank allows senior citizens to book fixed deposits easily through both online and offline methods, depending on their convenience and account status.

1. Online Method

   For New Customers:

   • Visit the nearest IDBI Bank branch to complete one-time KYC verification and open a savings account.
   • Once the savings account is active, you can use the Internet or mobile banking to open the FD online.

   For Existing Customers via Net Banking:

   • Log in to the IDBI Bank Internet Banking portal.
   • Navigate to: Accounts → Fixed Deposit Account → Suvidha Fixed Deposit.
   • Enter the deposit amount (minimum ₹10,000), select tenure, and choose the interest payout option (monthly/quarterly/half-yearly/cumulative).
   • Submit the form to complete the FD booking.

   For Existing Customers via Mobile App:

   • Open the IDBI Bank Mobile App.
   • Go to the Fixed Deposits section.
   • Select the FD type, enter the amount and tenure.
   • Choose your interest payout option and submit.

2. Offline Method

   For New and Existing Customers:

   • Visit your nearest IDBI Bank branch.
   • Fill out the Fixed Deposit Account Opening Form.
   • Submit KYC documents (PAN, Aadhaar, and a passport-size photo).
   • Deposit a minimum of ₹10,000 to start the FD.
   • Mention your senior citizen status to receive the additional 0.50% interest (for deposits of 1 year or more).
   • New customers may need to open a savings account before proceeding with the FD.

Taxation on IDBI Bank Senior Citizen FD Interest

Interest earned on IDBI Bank Senior Citizen Fixed Deposits is taxable and added to your total income, taxed as per the Income Tax Act. From April 1, 2025, TDS is applicable only if the total interest earned in a year exceeds ₹1 lakh. Senior citizens can submit Form 15H to avoid TDS if their income is below the taxable limit. Under Section 80TTB, senior citizens can claim a deduction of up to ₹50,000 on interest earned from IDBI Bank FDs.

Key Takeaways

IDBI Bank Senior Citizen Fixed Deposit offers an additional 0.50% interest rate over standard FDs, depending on the tenure chosen. Individuals aged 60 and above are eligible for this scheme, as per RBI guidelines. The deposit can be opened through internet banking, the mobile app, or by visiting a branch, ensuring flexibility in account opening. While the scheme offers good rates for long-term deposits, the benefit is limited for shorter tenures. The rate difference is small, which may not appeal to those looking for higher short-term returns.