IDBI offers 9.5 pc interest for FDs

Mumbai, May 10 (UNI) Industrial Development Bank of India limited (IDBI) today relaunched its 500 days fixed deposits (FD) scheme- IDBI Suvidha plus fixed deposit (ISPFD)-with an interest rate of 9.5 percent per annum.

The bank has also raised intersts on the five year fixed deposit scheme-IDBI Suvidha Tax Savings FD (ISTFD)-by 50 basis points to 9.5 percent and said the renewed rates will come in to effect from May7.

The minimum deposit allowed in the ISPFD scheme is Rs 10,000 while no cap has been fixed, said IDBI.

Under ISTFD scheme, an individual or a Hindu undivided family(HUF) can invest up to a maximum amount of Rs one lakh per annum.

The interests on ISTFD will be liable for tax depending on the method of accounting followed by the depositor.

''The current offer will be open for only a limited period. The FD schemes has been launched to meet the expectation of customers to receive a steady income over the short-to-medium term period.'', said V.P.Shetty, Chairman, IDBI.

Interest payouts will be delivered to customers under the ISPFD scheme on a monthly or quarterly basis whereas the payouts for ISTFD depositors will be on monthly/quarterly/cumulative basis.

UNI