What is a fixed deposit?
A fixed deposit (FD) allows you to invest a one-off sum of money for a chosen period (tenure) to earn a fixed rate of interest. Until the tenure ends a fixed deposit usually earns a higher interest rate than a regular savings account.
What is a recurring deposit?
A recurring deposit (RD) allows you to deposit smaller amounts at regular intervals, while earning interest comparable to a fixed deposit.
Is there a minimum amount or tenure for a term deposit?
For a fixed deposit the minimum amount is ₹5,000. For a recurring deposit it is ₹100. Tenures range from three months to five years. Recurring deposit can be paid daily, weekly, monthly or quarterly.
What are the Interest rates offered by digibank on term deposits?
Interest rates can be viewed on the digibank app, on the ibanking website in the term deposits section or viewed here.
If I choose to reinvest my term deposit at the end of the tenure, will the interest rate stay the same?
Not necessarily. The prevailing interest rate based on the tenure of the new deposit will apply. See here for more information.
Can I terminate my deposit before the maturity date?
You can terminate a deposit at any time on the “Manage” tab in the “Term Deposits” section of the digibank app, although there are penalties for early closure. The remaining balance will be paid to your savings account (takes a minimum of one working day).
Are my deposits insured?
Your deposits are insured up to ₹1,00,000 (1 lakh rupees). We’re governed under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India (RBI) set up to insure deposits and guarantee credit facilities. See here for more information.
What happens when my deposit matures?
You can reinvest the balance in a new deposit; transfer the money into your digiSavings account; or only transfer the interest you’ve earned to your digiSavings account and reinvest your original investment in a new deposit.
How do I set up a recurring deposit?
It’s easy. Either launch the digibank app on your smartphone or visit the digibank ibanking website, log in (or register if you have not done so yet) and select “Deposits (FD/RD)” in the navigation menu. Then select “Open new deposit” and just follow the instructions. You can set the payment frequency, amount, and length of tenure, and maturity instructions. It only takes a few minutes to start maximising your savings!
For a recurring deposit, does the interest rate change if I select daily, weekly monthly or quarterly payments?
No. The interest rate is set based on the tenure (the length of time before the deposit matures). The frequency of payment does not affect this.
Can I see how much interest I will earn on my deposit?
Yes, you can view your interest rate, total interest you will earn during the tenure and all other details. This information is shown when you create the deposit and can be viewed at anytime on the digibank app in the “Deposits(FD/RD)” section.
When my deposit matures, can I just transfer just the interest I’ve earned to my digiSavings account and reinvest the balance?
Yes. You can view and edit your settings in the “Deposits(FD/RD)” section of the digibank app. Just, tap on the deposit you want to view then select the “Manage” tab.
What does “reinvest on maturity” mean?
This allows you to renew your deposit when it ends. A new deposit will be created based on the same instructions as your previous deposit. The entire balance (your original investment and the interest you have earned) will be used to create a new deposit.
Will my deposit be automatically reinvested on maturity?
Your deposit will only be automatically reinvested if you've chosen that option when you set up the deposit. You can view and edit your settings in the “Deposits(FD/RD)” section of the digibank app. Just, tap on the deposit you want to view then select the “Manage” tab.
It there a cut off point when I can no longer change the maturity instructions for my deposit?
Maturity instructions can be changed at any time during the tenure from the “Manage” tab in the “Deposits(FD/RD)” section of the digibank app.
When I apply for a deposit, an alias name is required. What if I don’t want to give my deposit a name?
Sorry, but you are required to choose a name for your deposits. This helps you to personalise your investments.
When will I be notified that my deposit has matured?
You will be notified when your deposit is about to mature, and again on the date it matures by a combination of SMS, email and in-app messages.
What if my digiSavings account has insufficient funds for my recurring deposit payment?
Please ensure your account has sufficient funds on the date of each scheduled payment. If you miss a payment, your deposit will continue but the final maturity amount and interest earned will be adjusted based on the reduced level of investment. Fees may also be payable.
I want to create a deposit for a specific number of days, can I do this?
Yes, you can set the length of tenure in days between three months and five years from the date you create the deposit.
If I choose to reinvest my deposit on maturity, how many times will it be reinvested?
If you choose to reinvest on maturity, your deposit will be reinvested just once. You can set your preferred maturity instructions when you create the deposit.
If I choose to reinvest my deposit on maturity, will I be notified when it is reinvested?
You will be notified when your deposit is about to mature, and again on the date it matures and is reinvested by a combination of SMS, email and in-app messages.
Is there a charge for insuring my deposits with digibank?
No, there is no charge. We cover that cost for you.
How do I open a fixed deposit?
It’s easy. Either launch the digibank app on your smartphone or visit the digibank ibanking website, log in (or register if you have not done so yet) and select “Deposits(FD/RD)” in the navigation menu. Then select “Open a new Deposit” and just follow the instructions. It only takes a few minutes to start maximising your savings!
Can I change the amount and frequency of my recurring deposit?
Sorry, once you have created a recurring deposit you cannot change the payment amount or frequency.
How many deposits can I have at the same time?
TYes, you can view your interest rate, total interest you will earn during the tenure and all other details. This information is shown when you create the deposit and can be viewed at anytime on the digibank app in the “Deposits(FD/RD)” section.
Can I see how much interest I will earn on my deposit?
There is no limit on the number of fixed deposit accounts you can open.
What if my deposit matures on a weekend or public holiday?
If your deposit's maturity date falls on a weekend or public holiday, it will mature on the next working day. It will continue to earn interest for the extra days.
When will interest be paid on my deposit?
Interest on your fixed deposit is credited upon maturity or if you prematurely terminate the deposit. A premature termination may result in a rate lower than the prevailing rate.
Will I receive details about my term deposit by post?
No, we do not send this information by post. When you create a term deposit, a term deposit confirmation advice is created and stored within your digibank account by the next business day. When a deposit closes, because it matured or you decided to terminate it, we will create a closure advice. You can view or download these advice documents by selecting “My Account > Interest Certificate” on the navigation menu of the digibank app.
Can I change the renewal settings of a term deposit?
This can be changed at any time during the tenure from the “Manage” tab in the “Deposits(FD/RD)” section of the digibank app.
Where can I find the term deposit terms & conditions?
Terms & conditions can be found in the navigation menu on the digibank app or in your welcome email.
Can I see how much interest has been earned on my deposit?
You can view this information in the “Deposits(FD/RD)” section of the digibank app. Just, tap on the deposit you want to view.
Do senior citizens get any extra benefits for term deposits?
The interest rates on fixed deposits and recurring deposit are the same for all eligible customers.
How is the interest calculated if I withdraw my fixed deposit before it matures?
If you withdraw your deposit before maturity, your interest will be paid for the period of time that the deposit was held at either the prevailing rate on the original date of placement or the contracted rate, whichever is lower.
Do you offer partial liquidation of a term deposit that was created as an emergency fund?
Sorry, partial liquidations of term deposits are not allowed.
What are the requirements for opening a digibank term deposit?
Anyone with a digiSavings account can create a term deposit. The minimum amount for a fixed deposit is ₹5,000, for recurring deposits it’s ₹100.
Can I change the tenure and instalment due date (auto debit date) of a recurring deposit?
The instalment date will depend on the date you created the deposit. Once the recurring deposit has started, you cannot change the tenure or instalment due date.
Is Tax Deduction at Source (TDS) applicable on recurring deposits?
From June 1, 2015, Tax Deduction at Source (TDS) will be applicable on interest paid/accrued on recurring deposits. If you do not want tax to be deducted at source, submit Form 15G/15H (or another tax exemption certificate) to DBS bank. A tax exemption certificate must be submitted every financial year for each recurring deposit held with the bank.
Can I redeem my recurring deposit before the original term?
If you close your recurring deposit before completing the original term, interest will be paid at the rate applicable on the date of deposit for the period for which the deposit has remained with the bank. The deposit may be subject to a reduced rate of interest as set by the bank on the date of deposit.
What are the charges applicable on a recurring deposit for early closure within seven days from the date of opening the deposit?
No interest is payable for deposits prematurely withdrawn within a period of seven days from the date of deposit. No premature closure charges are applicable.
Can partial payments be made on recurring deposits?
No. We cannot accept partial payments.