Indian Bank FD Interest Rates 2025

What is the Indian Bank Fixed Deposit?

An Indian Bank FD is a time deposit product that enables you to deposit a sum of money for a tenure of your preference and receive interest at a predetermined rate. The deposit amount must be ₹1,000 with no limit. You can opt for an interest every quarter, month, year, or at maturity. The deposit will mature after the desired tenure, and the principal with interest is repaid. 

Indian Bank has introduced products like ‘Ind Secure’ with lower deposit amounts. Besides, the Green Retail Term Deposit product ‘Ind Green’ enables customers to invest in sustainable development. The bank offers the highest preferential rates to super-senior citizens (up to 7.55%).

Key Benefits of Indian Bank Fixed Deposit

Here are the main benefits of opening an Indian Bank FD, explained simply for all readers:

• Flexible Deposit Periods: You can choose how long to invest your money, from a minimum of 7 days to a maximum of 10 years. This allows you to plan for both short-term and long-term goals.
• Low Minimum Deposit: You can start an Indian Bank FD with just ₹1,000, which makes it accessible for many people, including first-time savers and small investors.
• Higher Interest for Senior Citizens: Senior citizens get an extra 0.50% interest per annum on deposits up to ₹10 crore. This extra return helps boost income for those in retirement.
• Automatic Renewal: If you forget to renew your FD on time, Indian Bank offers auto-renewal for the same period at the prevailing interest rate. This ensures your money keeps earning interest without interruption.
• Loan Facility Against FD: If you need funds urgently, you can take a loan against your FD without breaking it. This gives you financial support while the deposit continues to earn interest. The interest rate for loans is 1% more than the rate that was promised for the term deposit.
• Pre-Closure Option: If required, you can close your FD before maturity. Pre-closure is allowed, though some penalty may apply depending on the tenure and the amount, for example, if the period is more than or equal to 7 days and less than 181 days, with 1% lower than the applicable interest rate.
• Nomination Facility: You can nominate someone to receive your FD proceeds in case of unforeseen events. This helps ensure that your savings go to the right person without legal complications.
• Sweep-In/Sweep-Out Facility: Indian Bank offers this with its SB Platinum Account. Extra funds above ₹50,000 are moved into an FD automatically. If your balance falls, money is withdrawn from the FD. This helps earn more while keeping funds accessible.

Indian Bank FD Interest Rates

The table below provides an overview of indicative Indian Bank rates for different tenures:

Retail Domestic & NRO Term Deposits (< Rs. 3 Cr)

*Indian Bank FD interest rates w.e.f. May 8, 2025

IND SECURE FD (444 Days)

*Indian Bank FD interest rates w.e.f. May 8, 2025

IND GREEN FD (555 Days)

*Indian Bank FD interest rates w.e.f. March 26, 2025

Bulk Term Deposits (Rs. 3 Cr – Rs. 5 Cr)

*Indian Bank FD interest rates w.e.f. April 15, 2025

How to Open an Indian Bank Fixed Deposit (FD)

You can open an Indian Bank FD easily in a few simple steps:

1. Offline Method (Visit the Nearest Branch)

For those who prefer visiting a branch:

• Go to your nearest Indian Bank branch.
• Carry your PAN, ID proof, address proof, and a recent photograph.
• Fill in the FD application form.
• Choose your deposit amount, tenure, and payout option.
• Make the deposit and collect your FD receipt.

2. Online Method (Netbanking)

For existing Indian Bank customers with internet banking:

• Visit Indian Bank’s official website 
• Log in to your Net Banking account
• Navigate to “Online Term Deposit” (available on the left side menu)
• Click on “e-TDA Opening” from the available options.
• Click on the Agree button after reading the “Terms and Conditions.”
• Select term deposit type from the list i.e., “Fixed Deposit”
• Enter the deposit amount and select the tenure (7 days to 10 years).
• Add your nominee details.
• Choose the FD type (cumulative, monthly payout, etc.) and interest payout option.
• Confirm details and apply by typing the transaction password.
• OTP will be sent to the registered mobile number.
• Upon successful confirmation, your FD receipt will be generated and available for download or printing.

Documents Required for Indian Bank FD

To open an Indian Bank FD, you need the following documents:

• PAN Card (mandatory for taxation and TDS)
• Proof of Identity (Aadhaar, Passport, Voter ID)
• Address Proof (Utility bill, Aadhaar, etc.)
• Passport-size photograph
• Existing account details for interest credit

Taxation on Indian Bank FD Interest

Interest earned on Indian Bank FDs is taxed under “Income from Other Sources” as per the Income Tax Act. As per Section 194A, TDS is deducted at 10% if the annual interest exceeds ₹50,000. For senior citizens, the limit is now ₹1,00,000 from April 1, 2025. If you don’t provide your PAN, TDS is deducted at 20%.

To avoid TDS, eligible individuals can submit Form 15G or 15H to the bank. These forms are for people with income below the taxable limit. You can track all tax deductions using Form 26AS. Also, 5-year Indian Bank tax-saving FDs are eligible for deductions under Section 80C, up to ₹1.5 lakh.

Key Takeaways

Indian Bank FD interest rates provide consistent returns for tenures from 6 months to 10 years. You can open an FD with a minimum amount of ₹1,000, and senior citizens enjoy enhanced interest rates for deposits up to ₹10 crore. Features such as auto-renewal, loan against the deposit, and nomination make the deposits versatile and convenient for a large number of savers. Interest payment options and pre-closure options further enhance convenience. You can compare the best FD interest rates offered by different banks to make an informed decision.