Indian Bank, a public sector bank in India founded in 1907 and based in Chennai, has raised interest rates on fixed deposits of less than ₹2 crore. According to the bank’s official website, the new fixed deposit interest rates are effective as of today, March 4, 2023. After the modification, the bank raised its interest rate by 20 basis points on a select tenor, and retail customers can now earn up to 6.70% on their deposits.
Indian Bank FD Rates
On fixed deposits maturing in 7 days to 29 days, the bank will continue to offer an interest rate of 2.80% and on those maturing in 30 days to 45 days, Indian Bank will continue to offer an interest rate of 3.00%. Indian Bank will continue to offer an interest rate of 3.25% on a deposit tenor of 46 days to 90 days and the bank will continue to offer an interest rate of 3.50% on a deposit tenor of 91 days to 120 days.
Deposits maturing in 121 days to 180 days will continue to fetch an interest rate of 3.85% and those maturing in 181 days to less than 9 months will continue to fetch an interest rate of 4.50%. The bank will continue to give an interest rate of 4.75% on fixed deposits maturing in 9 months to less than 1 year, while Indian Bank will continue to offer an interest rate of 6.10% on those maturing in 1 year.
For deposits with a tenor of more than one year but less than two years, Indian Bank will still give an interest rate of 6.30%, but on deposits with a tenor of two years but less than three years, the bank has hiked the interest rate by 20 basis points to 6.70% from 6.50%. Deposits that mature in 3 to 5 years will earn interest at a rate of 6.25%, while those that mature after 5 years will continue to earn interest at a rate of 6.10%.
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On December 19, 2022, Indian Bank introduced a special retail term deposit product called “IND SHAKTI 555 DAYS” with a 555-day maturity period and a range of deposits from Rs. 5000 to less than 2 crore. Under this special retail FD scheme, Indian Bank is offering an interest rate of 7.00% for the general public and 7.50% for senior citizens.
The aforementioned interest rates are also applicable to NRE term deposits, the Tax Saver Scheme, and the Capital Gains Scheme Type B (Term Deposits) 1988 Scheme. The additional rate of interest payable for domestic term deposits for senior citizens would be 0.50% per annum for amounts up to ₹10 crore by Indian Bank, and the additional rate will be provided on deposits of 15 days to 10 years over the standard rate. In addition to the additional rate of 50 bps now being given for regular senior citizens, on term deposits for deposit buckets “above 5 Years up to 10 Years,” Indian Bank additionally offers an additional 0.25% higher rate of interest.
For super senior citizens (Age 80 years and over), Indian Bank also offers a special fixed deposit called “IB – Golden Ager.” Under this initiative, the bank is providing an additional 0.25% rate of interest over and above the additional rate currently being offered for normal senior citizens on domestic term deposit for all deposit tenors, taking the total benefit to 75 bps over and above the regular rates.
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