IDBI launches high-yield FD at 9 pc interest

Mumbai, Mar 2: Industrial Development Bank of India (IDBI) todaylaunched a new high-yield 360-days term deposit scheme under the 'IDBISuvidha Plus Fixed Deposit (ISPFD)' banner - at an attractive interestrate of 9 per cent per annum effective.

The new generation public sector bank has decided to increase theinterest rate offered on the 800-days' FD scheme by 50 basis points to9.5 per cent a year, said a IDBI press release.

With effect from the same date, even as it has discontinued the600-days FD scheme, which hitherto offered 8.75 per cent a yearinterest, while interest rate on the 300-days FD scheme remainsunchanged at 8.5 per cent, the release said.

Senior Citizens, as usual, will continue to enjoy 50 basis pointshigher interest rate on their investments in all the three ISPFDSchemes.

Eligible customers, including Individuals, Hindu UndividedFamilies, Companies, Trusts, NGOs etc stand to earn a good return oninvestment by parking a minimum amount of Rs 10,000 (and in multiplesof Rs 1,000 thereafter) in ISPFD scheme. There is no cap on the quantumof funds that can be parked in this scheme.

Commenting, Mr V P Shetty, IDBI Chairman and Managing Directorsaid,''Investors looking for steady income over a short-to-medium termhorizon will find the returns from the 'IDBI Suvidha Plus' FixedDeposit very attractive. The current offer will be open for a limitedperiod only.'' Depositors in the ISPFD Scheme have the choice ofreceiving interest payouts, either on a monthly or quarterly basis.Deposits, which run the full term, will be eligible for quarterlycompounding of interest. Pre-mature withdrawal will attract a penaltyof 1 per cent.

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