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Citibank Fixed Deposit Rate

What is a fixed deposit?

A fixed deposit - also known as term deposit or FD - is an investment option where you deposit a fixed sum of money with a bank or NBFC for a fixed term and the institution pays you interest on the money you deposit.

Fixed deposit scheme is a popular saving option among those with a low risk appetite. There is no market risk involved, and your principal remains intact while you earn an interest.

Many banks offer variants of the FD scheme which allow tax rebates, reinvestment of interest and other specialized features.

Citibank Fixed Deposit

Citibank Fixed Deposit Rate

This is the basic fixed deposit under which you can deposit a fixed amount of money for a fixed period. The minimum amount of deposit required is Rs. 1000 and there is no upper limit on the amount. The term usually ranges from 7 days to 10 years.

Citibank Multi Deposit

Citibank Multi Deposit is a special kind of deposit which is similar to the regular fixed deposit scheme. The interest rates applicable are also the same. The difference lies in the fact that you can withdraw partial funds from a multi deposit unlike fixed deposits where the funds can only be withdrawn by cancelling the entire contract and paying a penalty.

Under the multi deposit account, your investment earns the same interest as a regular deposit. If you withdraw partial funds, the remaining portion continues to earn interest at the agreed rate.

Citibank allows withdrawals in multiples of 1000/- only.

Citibank Senior Citizens Deposit

Senior citizens can invest in any of the Citibank Fixed Deposits. Because these individuals do have neither a regular income nor earning capacity, Citibank offers these citizens additional interest rate of 0.5% above the rate applicable under the scheme. These deposits are linked to savings bank accounts of the individuals and may be taken either in single name or jointly with spouse or other family members.

Citibank Tax Saver Deposit

As per the Indian Finance Act fixed deposits booked for a period of 5 years or more are applicable for deduction under section 80C of the Income Tax Act. Citibank Tax Saver Deposit is one such deposit which can be taken under any of the many FD schemes in Citibank. Terms would be applicable as per the said scheme except as under -

  • There is a minimum lock-in period of 5 years. The funds under the deposit - if taken for a period of more than 5 years - will be available for withdrawal after 5 years.
  • Interest rates are applicable as per scheme chosen.
  • Investors can choose to receive quarterly interest pay-outs or reinvest the interest.
  • Interest will be computed quarterly and depending on the choice of the investor - will be paid-out or reinvested every quarter.

Interest Rate on Citibank Fixed Deposit

The interest rate on fixed deposits in India ranges between 3.5 to 9%. Rates may vary for the following reasons -

  1. RBI regulation
  2. Amount of Deposit
  3. Term of Deposit

Most schemes allow investors to opt either for periodic interest pay-outs or reinvestment. Funds placed in fixed deposits cannot be withdrawn. However, the investor may close the deposit account if he so desires in which case a penalty will be deducted from the proceeds. Upon maturity - or premature withdrawal - the proceeds are credit to the savings or current account specified at the time of opening the deposit account. Interest rates remain fixed through the term of deposit except under special schemes that offer floating rates.

Citibank Fixed Deposit Rates

Citibank fixed deposits earn interest depending on term of deposit. The table below shows the interest rates for various terms.

Investment periodFD rates for regular deposit
7 days to 14 days3.00%
15 days to 25 days3.25%
26 days to 35 days3.50%
36 days to 45 days4.50%
46 days to 180 days4.75%
181 days to 1095 days5.00%
1096 days to 10 years5.25%

Citibank Fixed Deposit Interest Rates for Senior Citizens

Rates of interest are slightly higher for senior citizens. Here are the rates for Citibank Fixed Deposit for senior citizens.

Investment periodFD rates for Senior Citizens
7 days to 14 days3.50%
15 days to 25 days3.75%
26 days to 35 days4.00%
36 days to 45 days5.00%
46 days to 180 days5.25%
181 days to 1095 days5.50%
1096 days to 10 years5.75%

How to Calculate Citibank Fixed Deposit Interest

Citibank Fixed Deposit Rates

Different banks calculate interest rates differently. However you can get a fair idea of the amount of interest you will earn on a given amount for a given period using the following formula -

Formula to calculate Citibank FD Interest

A = P x (1 + r/n)nt

I = A - P

Where

A = Maturity Value

P = Principal Amount

r = Rate of Interest

t = Number of Years

n = Compounded Interest Frequency

I = Interest Earned

Although the formula is fairly accurate, there may be some variations in the actual amount. In order to understand the actual amount of interest you will earn on a specific amount for a specific time from your Citibank fixed deposit, you may visit the official website of the bank and use their interest calculator to compute interest for various amounts and periods.

Citibank Fixed Deposit Premature Withdrawal Penalty

Fixed deposits are invested for a specific period and no withdrawal is permitted before the term is up. However investors may close the fixed deposit account before expiry of the term. In this case a penalty of 1% will be applied to the contract rate of interest. Interest will be paid for the period for which the principal remained with the bank.

Citibank Fixed Deposit – FAQs

1. What is the eligibility for opening an FD account with Citibank?

All citizens of India including minors are eligible to open an FD account with Citibank. There is no age limit for opening an account however if an investor is a minor, he cannot be the first holder. Minors also require guardians to be appointed to handle the account on their behalf. Registered businesses with current accounts can also open a fixed deposit account with Citibank.

2. What is the documentation required for individuals to open an FD account in Citibank?

The usual KYC documents such as Aadhar card, PAN card will be required unless you are an existing customer of the bank and your KYC is up to date. You may also require an introduction from an existing customer who has held an active account for more than 6 months.

3. For how long can I keep my deposit?

Fixed deposit terms range from 7 days to 10 years. It is up to you to choose the term best suited to your needs and depending on the terms under the specific scheme you select.

4. Can I deposit additional amount in my FD account?

No. The very nature of FDs require that a fixed amount should be deposited for a fixed period.

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