Fixed Deposit - Open Fixed Deposit (FD) Account

What is Fixed Deposit (FD)?

A fixed deposit, also known as FD, is a type of financial investment offered by banks and non-banking financial institutions to their customers. People can invest a set amount of money for a set period of time in an FD and earn a higher rate of interest than they would in a regular savings account. The tenure of fixed deposits varies from 7 days to 10 years. If you want a hassle-free online FD account opening experience, opt for IndusInd Bank You can open an FD in three simple steps. All you need is your PAN and Aadhaar number and complete the Video KYC. The minimum amount that you need to open an FD is Rs. 10,000.

How safe are IndusInd Bank’s Online Fixed Deposits?

With AA+ Crisil and ICRA rating, IndusInd bank is one of the safest banks for opening fixed deposits. Investors can choose between flexible tenures ranging from 7 days to 10 years according to their needs and deposit capacity. The deposit insurance scheme of RBI covers all IndusInd Bank deposits of up to INR 5,00,000 at customer level. Contact IndusInd Bank or visit their website to open an FD account online and earn the best-in-class interest rate.

When will my Online Fixed Deposit Account get opened?

If you are an existing savings account holder in IndusInd Bank and want to open FD account online through netbanking, your FD will be opened immediately. In case the funding is from another bank, it will take 2 working days to open FD account online. This is subject to payment realisation from your debiting Bank and credit from the Payment partner.

What are the interest rates for IndusInd Online Fixed Deposit?

Customers deposit their funds in various schemes, each of which offers different interest rates. Fixed deposit is one such scheme that offers attractive interest rates on a one-time deposit for a certain period. Different banks offer different rates of interest on fixed deposits. IndusInd Bank offers an attractive interest rate for regular citizens and senior citizens.

What is the minimum and maximum tenure and amount?

If you are an existing IndusInd Bank customer, you can book a fixed deposit from a minimum of Rs. 10,000 to maximum Rs. 10 Lakhs. The new customers can book fixed deposit for amount ranging from 10,000 to Rs. 90,000 only. The minimum tenure for book a fixed deposit is 6 months and the maximum tenure is 10 years.

How will I receive my interest/maturity?

The interest accrued on the online fixed deposit will be directly credited to the linked IndusInd Savings Account of existing customers. However, if you don’t have a savings account with IndusInd Bank, the amount accrued, post maturity will be transferred to you via a Demand Draft in your name.

How does a bank calculate interest on fixed deposits?

FD is a safe investment that only requires a one-time deposit. You’ll earn interest on the amount you deposit for a chosen period of tenure. There are two methods for calculating interest on a fixed deposit: Simple Interest and Compound Interest.
The rate of interest on a fixed deposit is not the same for all tenures. You should check the rate of interest table available on the bank’s website to invest smartly.

How does a fixed deposit account work?

When you put money into a fixed deposit account, you lock away your funds for a set period of time. Banks give you the option of investing your money in an FD account for as little as 7 days or as long as 10 years. The money you put in helps you earn interest at a fixed rate. In addition, IndusInd Bank also allows premature withdrawal depending on the deposit category. Customers, however, need to check the product details to get the necessary information. On the maturity date, the bank deposits the principal and interest into your account. If you’re interested in opening an FD account online, IndusInd Bank is the right option. It allows you to open a fixed deposit account in three simple steps and offers a competitive interest rate. Get in touch with IndusInd Bank for more information.

How to save tax on FD interest?

If the amount of interest on an FD exceeds Rs. 40,000, (50,000 in case of resident senior citizens) the amount will be eligible for a 10% tax deduction. An investor must submit form 15G to the bank, stating that he has no taxable income, in order to avoid paying tax on his FD returns. To avoid TDS on FD returns, senior citizens must submit form 15H to the bank. An investor can also distribute the FD amount to keep the interest rate under Rs. 40,000. Another option for tax saving is to choose a tenure that does not exceed Rs. 40,000 in interest. Book a 5-year Tax Saver Fixed Deposit wit IndusInd Bank and save tax. For more information, get in touch with IndusInd Bank.

Can I withdraw FD anytime?

You can withdraw an FD prematurely, that is before its maturity date. This may allow you to access funds during a cash crunch.

However, premature withdrawal of FD is not advisable mainly due to two reasons:

• You may have to incur penalties on the interest earned in the withdrawal amount.
• The FD will not reach its full potential, that is earn the optimal amount of interest. 

In addition, some FDs may not allow premature withdrawal. 

Will I get a Fixed Deposit Advice upon opening my FD Account?

Yes, you will receive a Fixed Deposit Advice after you book an FD with IndusInd Bank. The advice will be updated and available within a few days of opening your FD account. 

• You can log in to our Net Banking portal or the IndusMobile App with your credentials. Simply browse over to the ‘Fixed Deposits’/ ‘Account Summary’ section and click on ‘View/ Download Fixed Deposit Advice’.
• A printable FD Advice will be provided to you as per your request. You can view it, save it, or print it as per your preference.
• In case you need any assistance in accessing the Advice, reach out to our 24/7 Customer Care for help.
• You can also visit your nearest IndusInd Bank Branch to get the updated FD Advice. 

Is there any Nomination facility available for FDs?

Yes, you can opt for a nomination facility for Fixed Deposits. The applicant can nominate an individual to receive the funds of the FD in the event of the account holder's demise. The nomination can be made at the time of opening the FD or added later by submitting a nomination form. One can change the nominee at a later stage too.

You can nominate your spouse, parent, sibling, or even a minor/independent child as a nominee. 

What factors should I consider when selecting a Fixed Deposit Account?

When selecting a Fixed Deposit account, consider the following factors:

• Interest Rate - Compare interest rates across banks to ensure you get the best return on your investment.
• Tenure - Choose a tenure that aligns with your short-term and long-term financial goals.
• Premature Withdrawal - Check the bank’s policies regarding premature withdrawal and the penalties involved.
• Compounding Benefits - Understand how often interest is compounded as this affects your overall earnings.
• Minimum Deposit Amount - Ensure you meet the minimum deposit requirement of the bank.
• Bank Reputation - Consider the bank’s reliability and customer service quality.

Why Should I Invest in Fixed Deposits?

You should invest in a Fixed Deposit because:

• FDs offers a safe and steady way to earn returns on your investment.
• FDs provide guaranteed returns that are unaffected by market conditions.
• It is very easy to open an FD and track it; you can do it via net banking or through mobile banking apps with just a few simple steps.
• Tax saver FDs also help to save tax (as per prevailing tax laws). 

Can the Bank deduct TDS on the FD accounts booked?

If the interest earned on the FD is above a certain threshold, the bank is liable to deduct TDS as per the norms and rates set by prevailing tax laws. The TDS is deducted at the end of every financial year by the bank.

The TDS rates for FDs can differ based on factors such as the applicant’s tax slab, their age, PAN status, and more. Individuals whose total taxable income is below ₹ 2.5 lakhs are exempt from TDS on FDs. 

Is there any Special Rate provided by IndusInd Bank for Senior Citizens?

Yes, senior citizens can enjoy higher rates when they book an FD with IndusInd Bank.

Currently, the highest interest rate provided to senior citizens is 8.25% p.a. With high interest rates, senior citizens can enjoy better returns and grow their savings grow more efficiently.

Note that the interest rate depends on the tenure chosen by the applicant.

What are the features of Tax Saver Fixed Deposits?

With a Tax-Saver Fixed Deposit, you can enjoy the following features:

• Tax Deductions – Save up to ₹1.5 lakhs per annum under Section 80C of the Income Tax Act.
• Guaranteed Returns – The returns on an FD are guaranteed, regardless of market fluctuations.
• Lock-in Period – Tax-saver FDs have a minimum tenure of five years, post which you can withdraw the amount.
• Flexibility – You can deposit the amount as per your needs. 

Does the amount from the Fixed Deposit account automatically transfer to our account on the maturity date?

Yes, when your FD matures, you receive the full amount (principal amount + accrued interest, minus the applicable taxes) into your IndusInd Bank Savings Account. If you do not have a Savings Account with IndusInd Bank, the amount may be transferred to you via a Demand Draft.

This is only applicable if you have opted for auto-closure of the FD on maturity. If you have pre-opted for auto-renewal, the bank will renew the FD unless otherwise indicated.