Indian Bank Senior Citizen FD Rates 2025

What Is an Indian Bank Senior Citizen FD?

Indian Bank senior citizen FD is a special scheme for individuals aged 60 years and above. With Indian Bank, senior citizens can choose monthly, quarterly, half-yearly, or cumulative interest payouts. This flexibility helps them create a steady income stream to manage day-to-day expenses or plan for a larger expenditure. The minimum deposit amount is ₹1,000, and deposits up to ₹3 crore are accepted under the retail category. Interest payouts can be chosen as monthly, quarterly, or cumulative at maturity, based on the investor’s needs. 

Also, super senior citizens (aged 80 and above) benefit from the “IB – Golden Ager” scheme, which offers a total of 0.75% extra interest. Among various Indian Bank FD interest rates, this scheme stands out as a rewarding option for long-term savings.

Key Features of Indian Bank Senior Citizen FDs

Here are some of the most attractive features of the Indian Bank Senior Citizen FDs:

1. Extra Interest for Longer Tenures:

   For FD tenures above 5 years and up to 10 years, Indian Bank offers an extra 0.25% p.a. over the standard senior citizen benefit. This brings the total interest benefit to 0.75% p.a. for such long-term deposits.

2. Auto-Renewable: 

   Indian Bank provides an auto-renewal facility for FDs, allowing senior citizens to continue earning interest without worrying about maturity dates. It’s perfect for those who prefer a passive investment approach with minimal maintenance.

3. Sweep-in/Sweep-out Facility: 

   Indian Bank's sweep-in/sweep-out feature allows excess funds to automatically shift between the savings account and the FD. This helps senior citizens earn better interest without compromising on liquidity for regular withdrawals.

4. Premature Withdrawal Perks: 

   Indian Bank follows a senior-friendly premature withdrawal policy with specific terms based on the deposit duration and amount:

   • Below 7 days: No interest is paid.
   • 7 to 181 days: 1% penalty on applicable interest.
   • 181 days & above (up to ₹5 lakh): No penalty.
   • Staff/Ex-staff (including senior citizens): No foreclosure charges.
   • ₹5 crore & above: The bank may restrict premature withdrawal at its discretion.

Indian Bank Senior Citizen FD Rates 

Below are the latest Indian Bank FD interest rates for senior citizens on deposits.

Indian Bank Senior Citizen FD Rates (Less Than ₹3 Crore)

*Indian Bank FD interest rates w.e.f. June 9, 2025

Indian Bank IND SECURE FD Scheme (Below ₹3 Crore)

*Indian Bank FD interest rates w.e.f. June 9, 2025

Indian Bank IND GREEN FD Scheme (Below ₹3 Crore)

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

How to Open an Indian Bank Senior Citizen FD?

There are two ways to open an Indian Bank Senior Citizen FD account:

1. Online Method

   Senior citizens can open an FD easily through Indian Bank’s NetBanking or mobile app by following these quick steps:

   • Log In to Your Account: Access Indian Bank’s NetBanking or mobile app using your customer ID and password to begin the FD process.
   • Navigate to the Fixed Deposit Section: Select the Fixed Deposits option and choose the specific interest slab for senior citizens to proceed.
   • Enter Deposit Details: Choose the deposit amount (minimum ₹1,000), select tenure, and pick a suitable interest payout option, monthly, quarterly, etc.
   • Enable Auto-Renewal Option: If preferred, activate auto-renewal to avoid manual renewals and ensure continuous interest earning on maturity.
   • Fund Your Deposit: Authorise the payment directly from your linked savings account to initiate the fixed deposit without visiting a branch.
   • Receive and Manage Certificate: After completion, download the e-FD certificate and track or manage your deposit via the online dashboard.

2. Offline Method

   Here’s how senior citizens can open a fixed deposit account at Indian Bank in person:

   • Visit the Nearest Branch: Walk into any Indian Bank branch nearby to begin the fixed deposit account opening process for senior citizens.
   • Submit Required Documents: Carry and submit Aadhaar, PAN, passport-size photos, and proof of age to confirm senior citizen eligibility.
   • Fill out the FD Application Form: Choose your FD tenure, interest payout frequency, and provide nominee details on the fixed deposit form.
   • Fund Your FD and Opt for Auto-Renewal: Deposit the amount in cash or transfer, and enable auto-renewal if you prefer not handling renewals.
   • Collect Printed FD Certificate: Once processed, the bank will issue a physical fixed deposit receipt with complete details of your investment.

Taxation on Indian Bank Senior Citizen FD Interest

Tax Deducted at Source (TDS) is applicable on the Indian Bank senior citizen FD if the total annual interest exceeds ₹1,00,000. Senior citizens are required to pay tax on interest income as per the applicable income tax slabs. However, if your total income is below the taxable limit, you can avoid TDS by submitting Form 15H at the beginning of the financial year. Additionally, under Section 80TTB, senior citizens can claim a deduction of up to ₹50,000 per year on interest earned from fixed deposits.

Key Takeaways

Indian Bank senior citizen FD rates for 2025 offer secure and enhanced returns, ranging from 6.60% for 1-year deposits to 7.65% for select special schemes. These fixed deposits are ideal for post-retirement financial stability and come with senior-friendly features such as flexible interest payout options, auto-renewal facilities, and the option to avail loans against the deposit. Customers can compare FD interest rates with those of other leading banks in India to make an informed investment decision.