Indian Bank FD Interest Rates

Indian Bank provides its customers with a wide range of fixed deposit options to invest their hard-earned money and earn attractive interest on Indian Bank FD Interest Rates. These Indian Bank FD Interest Rates are safe investment options that offer a higher rate of interest as compared to saving bank accounts.

The only thing that the customer needs to do is start a Fixed Deposit account with the Indian Bank by depositing at least the minimum required investment amount and choosing a maturity period. Once the account is active, he/ she cannot deposit additional money in their FD account in the middle of the tenure.

Features of Indian Bank Fixed Deposit

Investment Amount  Minimum - Rs.100 Maximum- No Maximum Limit
Tenure  Minimum - 7 daysMaximum- 10 Years
Interest Rate  Minimum - 3.05 %Maximum- 5.40%

Indian Bank Fixed Deposit Rates 2021

Indian Bank FD Rates in India
Tenure General Public FD Rates Senior Citizen FD Rates
7 days to 14 days 3.05% 3.55%
15 days to 29 days 3.25% 3.75%
30 days to 45 days 3.25% 3.75%
46 days to 90 days 3.25% 3.75%
91 days to 180 days 4.00% 4.50%
181 days to 269 days 4.50% 5.00%
9 months to 364 days 4.50% 5.00%
1 year 5.50% 6.00%
1 year 1 day to 1 year 364 days 5.40% 5.90%
2 years to 4 years 364 days 5.40% 5.90%
5 years 5.40% 5.90%

Comparison of FD Rates by Top 10 Financial Institutes

Name Interest Rates Tenure  
Axis Bank 5.75% 5 years to 10 years View Details
Bank of Baroda 5.30% 5 years 1 day to 10 years View Details
Bank of India 5.40% 5 years to 10 years View Details
Canara Bank 5.45% 3 years to 10 years View Details
Central Bank of India 5.35% 5 years to 10 years View Details
HDFC Bank 5.50% 5 years 1 day to 10 years View Details
ICICI Bank 5.50% 5 years 1 day to 10 years View Details
IDBI Bank 5.70% 7 years 1 day to 10 years View Details
State Bank Of India 5.40% 5 years to 10 years View Details
Yes Bank 7.00% 1 year to 10 years View Details

Features of Indian Bank Fixed Deposit Interest Rates

Take a look at some of the attractive features of Indian Bank fixed deposit interest rates below:

  • Applicable on deposits of Rs 1000 and above
  • Applicable on deposits with a minimum tenure of 7 days to a maximum of 5 years
  • Additional interest rate of 0.50% offered to senior citizens
  • The Indian Bank FD rates are applied quarterly, monthly with a discount or on maturity
  • Interest earned on FD is taxable
  • The Indian Bank FD rates also apply to auto-renewal deposits

Indian Bank FD Schemes

Indian Bank offers three types of fixed deposit schemes to its customers. They are:

  • Regular Fixed Deposit Scheme
  • Tax Saver Term Deposit Scheme
  • Reinvestment Term Deposit Scheme

Check out each of these FD schemes below in detail:

Regular Fixed Deposit Scheme

The Regular Fixed Deposit scheme by Indian Bank allows people to park their savings in an FD account to earn higher returns. It comes with greater flexibility as well as easy liquidity when compared to a savings bank account. Take a look at the features of Regular Fixed Deposit scheme:

  • This FD account requires a minimum investment of Rs 1000.
  • It comes with a minimum tenure of 7 days to a maximum of 10 years.
  • The Indian Bank FD interest rates are applied quarterly or monthly with a discount.
  • Senior citizens are paid 0.50% higher interest rate than regular Indian Bank FD rates for an aggregate deposit amount of up to Rs 10 crore.
  • It comes with nomination facility.
  • It allows the depositor to get a loan against the FD amount.
  • It comes with an automatic renewal facility that reinvests the maturity amount for the same tenure.
  • It also provides the pre-closure facility.

Tax Saver Term Deposit Scheme

The Tax Saver Term Deposit scheme by Indian Bank has been designed for people who want to avail tax rebate on their investments under Sec 80C of the Income Tax Act. Take a look at the features of the Tax Saver Term Deposit scheme:

  • This type of FD account requires a minimum investment of Rs 1000 and can have a maximum investment of Rs 1,50,000.
  • It comes with a minimum tenure of 5 years to a maximum of 10 years.
  • The Indian Bank FD interest rates are applied quarterly or monthly with a discount or at maturity.
  • Senior citizens are paid 0.50% higher interest rate than regular Indian Bank FD rates for an aggregate deposit amount of up to Rs 10 crore.
  • It comes with nomination facility.
  • It does allow for foreclosure before completing 5 years.
  • It does not provide any loan against the FD amount for up to 5 years.

*Tax benefit is subject to changes in tax laws

Reinvestment Term Deposit Scheme

The Reinvestment Term Deposit scheme by Indian Bank reinvests the interest earned on deposits and pays compound interest on maturity. Take a look at the features of Reinvestment Term Deposit scheme:

  • This type of FD account requires a minimum investment of Rs 1000.
  • It comes with a minimum tenure of 6 months to a maximum of 10 years.
  • The interest on investment amount is compounded quarterly as per the Indian Bank FD interest rates.
  • Senior citizens are paid 0.50% higher interest rate than regular Indian Bank FD rates for an aggregate deposit amount of up to Rs 10 crore.
  • It comes with nomination facility.
  • It allows the depositor to a get loan against the FD amount.
  • It comes with an automatic renewal facility that reinvests the maturity amount for the same tenure.
  • It also provides the pre-closure facility with an applicable penalty.

Indian Bank FD Term Wise Interest Rates

Every term deposit comes with a maturity period. A person can open an FD for short-term, medium-term or long-term. Take a look at the three types of fixed deposit accounts offered by Indian Bank based on their maturity term:

1. Short-Term Deposit

Short-term deposits refer to those fixed deposits which have a maturity period of up to one year. This type of deposit is opened to achieve short term goals. The Indian Bank offers short-term deposit for a minimum of 7 days to a maximum of 1 year. At present, the maximum interest rate for short-term deposit by Indian Bank is 5.15%.

2. Medium-Term Deposit

Medium-term deposits are those fixed deposits that come with a tenure of more than 1 year and goes up to 5 years. The Bank currently provides a maximum interest rate of 5.25% on medium-term deposits.

3. Long-Term Deposit

Long-term deposits refer to those fixed deposits which come with a tenure of more than five years. This type of deposit can is opted to achieve long-term goals, such as retirement. As per the existing Indian Bank FD rates, the Bank is offering an interest rate of 5.15% on long-term deposits.

Indian Bank FD Calculator

The Indian Bank FD calculator is a tool that helps a depositor estimate the maturity amount of a fixed deposit. It uses certain information related to an FD, such as the investment amount, rate of interest, deposit tenure, etc. to determine the amount that the depositor will get at maturity. However, the Indian Bank FD calculator is only available online.

Tax Implications

  • The amount invested in fixed deposit with a tenure of 5 years with Indian Bank is eligible for tax deduction under IT section 80C, whereas the interest earned on the investment is taxable.
  • The applicable tax will be deducted at source, i.e. Indian Bank, in case the annual interest earned crosses Rs. 40,000 for the general public and Rs 50,000 for senior citizens.

*Tax benefit is subject to changes in tax laws

Loan Against Indian Bank Fixed Deposit

The Indian Bank allows its customers to avail loan on their fixed deposits, except under the Tax Saver Term Deposit scheme. The depositor can avail a loan for up to 90 per cent against his/her FD amount. The maximum tenure of the loan taken against the FD is restricted to up to the maturity period of the fixed deposit.

For example - Mr A had started an Indian Bank FD account with Rs 10,00,000. He decides to take a loan against the deposit and gets a loan for up to 90% of the FD amount at an interest rate of 10%. This means he gets a loan of 9,00,000 and will have to pay an interest of 10% every month on the loan amount.

Please note that Indian Bank will provide a loan against an FD in the same bank and not in some other bank.

About Indian Bank

Indian Bank is regarded as one of the top-performing banks and best servicing financial services company. It was established in 1907. The Company boasts of overseas branches in Sri Lanka and Singapore.

Indian Bank offers great additional interests to senior citizens, eligible ex-staff members, and ex-staff cum senior citizens. For instance, the additional Indian Bank FD interest rates for senior citizens are 0.50% p.a. above the normal rate of interest, but for amounts less than Rs 2 crore. This additional rate of interest is offered for the tenure of investment between 7 days to 10 years over the normal Indian Bank FD rates for regular fixed deposit scheme, short-term deposit scheme, Tax Saver term deposit and reinvestment plan scheme.

As part of customer-friendly measures, the Indian Bank ensures that all types of deposits like reinvestment plan deposits, fixed deposits, and short-term deposits are automatically rolled over the same tenure under a similar scheme. The prevailing Indian Bank FD rates are applicable on the date of automatic renewable to the rolled over amount.

It should be noted that the rate of interest on the bank's deposit in the domestic term applies to Capital Gains Scheme. If there has been a revised rate of interest, they apply to the renewal of any maturing deposits and fresh deposits.

Indian Bank FD - FAQs

Written By: PolicyBazaar - Updated: 28 October 2020
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