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Indian Bank FD Interest Rates 2024

Last Updated : 04 Jan, 2024
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Indian Bank is a nationalized banking and financial services company with its main office located in Chennai, Tamil Nadu. It is owned by the Government of India (Ministry of Finance). Serving more than 100 million customers, it is regarded as one of India’s best-performing public sector banks. Customers of Indian Bank have access to a wide range of FD options that allow them to secure their funds and earn interest. The interest on savings accounts is often lower than the rates offered by Indian banks on fixed deposits. When opening an account, a customer must deposit at least the required minimum amount. Once the account is opened, the consumer cannot make any changes or make more deposits.

For fixed deposits below ₹2 crore, the interest rate varies from 2.80% to 6.70% annually. The maturity period can range from seven days to over five years. The bank gives senior citizens who deposit up to ₹2 crore an extra interest rate of 0.50% p.a. The deposit rates under the “IND Super 400 days” special program vary from 7.25% to 8.00%.

Indian Bank FD Interest Rates: Less than 2 crore

Tenure Bracket

Regular FD rates (p.a.)

Senior Citizens FD rates (p.a.)

7 to 14 days

2.80% 

3.30% 

15 to 29 days

2.80%

3.30% 

30 to 45 days

3.00% 

3.50% 

46 to 90 days

3.25% 

3.75% 

91 to 120 days

3.50% 

4.00% 

121 to 180 days

3.85% 

4.25% 

181 days to less than 9 months

4.50% 

5.00% 

9 months to less than 1 year

4.75% 

5.25% 

1 year

6.10% 

6.60%

1 year 1 day to less than 2 years

6.30% 

6.80% 

2 years to less than 3 years

6.70%

7.20% 

3 years to less than 5 years

6.25% 

6.75%

5 years

6.25% 

6.75%

More than 5 years

6.10% 

6.60%

Indian Bank FD Interest Rates: ₹2 crore to ₹5 crore

Tenure Bracket

Regular FD rates (p.a.)

Senior Citizens FD rates (p.a.)

7 to 14 days

5.00%

5.00%

15 to 29 days

5.00%

5.00%

30 to 45 days

6.00%

6.00%

46 to 90 days

5.25%

5.25%

91 to 120 days

5.25%

5.25%

121 to 180 days

5.50%

5.50%

181 days to less than 9 months

5.50%

5.50%

9 months to less than 1 year

6.25%

6.25%

1 year

6.70%

6.70%

1 year 1 day to 2 years

6.65%

6.65%

2 years to less than 3 years

6.10% 

6.10%

3 years to less than 5 years

6.00% 

6.00%

5 years

6.00% 

6.00%

More than 5 years

6.00%

6.00%

Benefits of Indian Bank Fixed Deposit

1. Flexible time period : The duration of the Indian Bank’s fixed deposits vary from seven days to five years and even longer. It is therefore suitable for a large range of customers.

2. Auto-renewal facility : Indian Bank offers an option to have fixed deposits automatically renewed. It implies that the deposits will automatically be renewed when they mature.

3. Premature withdrawal : Indian Bank offers options for premature FD withdrawal according to customer requirements.

4. Loan facility : Some Fixed Deposits provide loans against the deposits.

5. Additional interest for seniors : Indian Bank provides an additional rate of interest on Fixed Deposits for senior people, super senior citizens, and staff.

6. Generous payouts : Indian Bank offers alternatives for interest payments on FD that are either monthly or quarterly. This is advantageous for those who want a steady regular income.

7. Benefits related to taxes : Section 80 exemptions are offered by the Indian Bank’s IB Tax Saver Scheme, which helps reduce taxes.

Types of Indian Bank FD Schemes

1. Indian Bank Regular Fixed Deposit Scheme

Tenure

Range from 7 days to 10 years

Deposit Amount

Minimum deposit amount is Rs 1,000

Maximum deposit amount – no maximum limit.

Interest Offered

For Regular Deposit – 2.8% to 6.70%

For Senior citizen – 3.3 % to 7.20%

Eligibility

A regular fixed deposit scheme can be opened by a resident Indian, a public or private limited company, a HUF, a trust, or a partnership firm.

Special Categories of Customers

Additional 0.50% p.a interest will be offered to senior citizen for the amount upto Rs 10 crore.

Premature Withdrawal Facility

Premature facility is available

Renewal of Deposit

Possible

Loan Facility

Available to get loan of some portion of Fixed Deposit.

Payment of Interest

Interest can be payable monthly , quaterly or annually or at the time of maturity

2. Indian Bank Short Term Deposit scheme

Tenure

7 days to 180 days

About

This deposit allows individuals to invest their money in deposit for the short period of time .

Deposit Amount

Minimum deposit amount is Rs 1,000

Maximum deposit amount – no maximum limit.

Interest Offered

For Regular deposit – 2.80% to 4.75% p.a

Eligibility

It can be opened by a resident Indian, a public or private limited company, a HUF, a trust, or a partnership firm.

Special Categories of Customers

Additional 0.50% p.a interest will be offered to senior citizen for the amount upto Rs 10 crore.

Additional 1 % p.a interest will be offered to staff for the amount upto Rs 2 crore.

Additional 1.50% p.a interest will be offered to Ex staff senior for the amount upto Rs 10 crore.

Premature Withdrawal Facility

Available

Renewal of Deposit

Available

Loan Facility

Available to get loan upto some percentage of Fixed Deposit.

Payment of Interest

Interest will be payable at the time of maturity with principal subject to TDS.

3. Indian Bank Tax Saver Term Deposit Scheme

About

Depositors are eligible for a tax benefit under Section 80C of the Income Tax Act. The advantage is available for deposits of up to INR 1,50,000 per year.

Tenure

Minimum – 5 years

Maximum – 10 years

Deposit Amount

Minimum – Rs 1000

Maximum – Rs 150000 in a financial year.

Interest Offered

Upto 5 years – For Regular Deposit – 6.25% and For Senior citizen – 6.75 % .

More than 5 years upto 10 years – For Regular Deposit – 6.10% and For Senior citizen – 6.60 % .

Special Categories of Customers

Additional 0.50% p.a interest will be offered to senior citizen.

Premature Withdrawal Facility

premature of foreclosure allowed upto 5 years

Renewal of Deposit

Allowed at the time of maturity

Loan Facility

No loan facility allowed upto 5 years

Payment of Interest

Interest can be payable monthly , quaterly

4. Money Multiplier Deposits

Tenure

Minimum – 6 months

Maximum – 10 years

Deposit Amount

Minimum deposit amount is Rs 1,000

Maximum deposit amount – no maximum limit.

Special Categories of Customers

Additional 0.50% p.a interest will be offered to senior citizen.

Premature Withdrawal Facility

Premature withdrawal facility is available.

Renewal of Deposit

Automatic renewal of FD available.

Loan Facility

Available to get loan upto some percentage of Fixed Deposit.

Payment of Interest

Interest can be payable Quaterly . It allows you to earn interest on both the principal and the interest which is already earned.

5. IND Non-Callable Deposit

Tenure

Minimum – 7 Days

Maximum – 10 years

Deposit Amount

Minimum deposit amount – Above ₹5.00 Crore

Maximum deposit amount – no maximum limit

Premature Withdrawal Facility

Not available during the deposit tenure period.

Payment of Interest

Interest can be payable Monthly , Quaterly

Renewal of Deposit

Automatic renewal of FD available.

Loan

Demand Loan/Overdraft facility will be provided at the bank’s discretion and in accordance with existing criteria.

How to Invest in Indian Bank FD?

There are several ways to create an Indian Bank FD account, including offline, Internet Banking, and using a mobile app.

1. Internet Banking

To start an Indian Bank FD account using internet banking, follow the procedures outlined below :

1. Login to your Indian Bank NetBanking account.

2. Select the ‘e-TDA Opening’ option from the ‘Online Term Deposit’ menu.

3. Read and thoroughly review all of the ‘Terms & Conditions’ before proceeding to fill out all of the required information.

4. Using a one-time password (OTP), authenticate the transaction.

5. The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

2. Mobile App – Indian Bank App

To create an FD account using the Indian Bank Mobile App, follow the procedures outlined below :

1. Sign in to the Indian Bank App after downloading it.

2. To proceed, select the Term Deposits option.

3. Fill out all of the information, including personal information, nominee information, and maturity instructions.

4. Using a one-time password (OTP), authenticate the transaction.

5. The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

3. Offline Indian Bank FD Opening

To open an Indian Bank FD account offline, go to your local Indian Bank branch. Fill up the Indian Bank FD application form and submit it together with all required papers and the deposit amount. When the application is properly processed, the Indian bank will provide an FD receipt.

Eligibility to Open an Indian Bank FD Account

When considering to invest in Indian bank FDs, investors have to fulfil the following criteria:

1. You must have an individual or joint FD account with the bank.

2. NRIs can only invest through NRE and NRO accounts.

3. Investor should be memeber of HUF which stands for Hindu undivided family.

4. Minors can invest in these FDs as well, but they must be accompanied by their parents or guardians.

5. For these sort of Investments ,Trusts, public and private limited companies, partnerships, and sole proprietorships are also eligible.

Documents Required to Open Indian Bank FD

For Opening an FD in INDIAN BANK Investors must ensure that they have the following documents with them :

1. Proof of Identity

  • Pan card
  • Voter ID
  • Aadhaar card
  • Ration card including a photograph
  • Driving license
  • Senior citizen ID
  • Passport

2. Proof of Address

  • Electricity bill
  • Telephone bill
  • Bank statement with cheque
  • Passport
  • Identity card issued by Post Office

Customers also need to give their two passport-sized photographs at the time of opening the deposit account.

Tax on Indian Bank Fixed Deposit

An investment in an Indian Bank Tax Saving FD enables you to annual tax savings of up to Rs. 1,50,000. Other Indian Bank FDs do not qualify for tax benefits under Section 80C of the Income Tax Act.

Also, keep in mind that the interest income from the Indian Bank Fixed Deposit will be taxable according to the income tax slab rates. If the interest income from an Indian Bank FD reaches Rs. 40,000 per year, a 10% TDS will be charged.

The maximum limit for senior citizens is Rs. 50,000 per year. Furthermore, if the investor fails to provide the bank with PAN Card details, the TDS rate would be 20%.

Loan Against Indian Bank FD

Customers with Indian Bank FDs may take loans against their investments. The limit is set at 90% of the FD’s value. The interest rate charged ranges from 5% to 7.5%. The maximum period for such a loan is the same as the maturity term for the FD.

Premature Closure of Indian Bank Fixed Deposit

Except for tax-saving Fixed Deposits, Indian Bank Fixed Deposits can be withdrawn prematurely. Deposits of less than Rs. 5 lakh are not penalised if held for 181 days. A 1% penalty will be applied for fixed deposits more than Rs. 5 lakhs that are withdrawn before 181 days.

FAQs

Q1. Can a customer discontinue their Indian Bank FD at any time?

Answer:

Yes, an investor can close his or her FD with Indian Bank at any moment. Premature closing is not permitted in the case of an IB tax saver FD.

Q2. Can an investor deposit extra funds in his or her existing FD with an Indian bank?

Answer:

No, once an FD has been created with a predetermined amount, no further funds can be added.

Q3. What documents are required to start an FD account with Indian Bank?

Answer:

To create an FD account with an Indian bank, an investor must provide identity proof, address proof, and two passport-sized pictures.

Q4. What is the current highest Indian bank FD rate?

Answer:

The highest Indian bank FD rates are 7.25% p.a. for regular residents and 7.75% p.a. for senior citizens.

Q5. What is the minimum deposit amount for an Indian Bank FD?

Answer:

Indian Bank FDs require a minimum investment of INR 1,000. However, there is no limit on maximum investment amount in an Indian Bank FD.

Q6. How can I check the balance of my fixed deposit at an Indian bank?

Answer:

You may check your Indian Bank FD balance online or offline. Log in to the Indian Bank internet banking system for online banking. Alternatively, you can go to your local Indian Bank branch to update your passbook for FD balance inquiries.



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