Indian Bank FD Interest Rate
Indian Bank was incorporated on 5th March 1907 as a nationalized financial service and banking company. Its headquarter is in Chennai, Tamil Nadu. It is a public sector bank which means it comes under the purview of the Government of India (Ministry of Finance).
The bank offers multiple Fixed Deposit(FD) options with different rates at different investment periods. The tenure ranges from 7 Days to 5 years and above for the general public and senior citizens. The bank also provides FD options for NRIs, NRE, FCNR etc. Let's discuss this in detail.
Interest Rates Chart 2023
| Tenure | For General Citizens (p.a.) | For Senior Citizens (p.a) |
|---|---|---|
| 7 to 14 days | 2.8% | 3.3% |
| 15 to 29 days | 2.8% | 3.3% |
| 30 to 45 days | 3% | 3.5% |
| 46 to 90 days | 3.25% | 3.75% |
| 91 to 120 days | 3.5% | 4% |
| 121 to 180 days | 3.85% | 4.25% |
| 181 days to less than 9 months | 4.5% | 5% |
| 9 months to less than 1 year | 4.75% | 5.25% |
| 1 year | 6.1% | 6.6% |
| 1 year 1 day to less than 2 years | 6.3% | 6.8% |
| Note: All interest rates are updated as of 18th May 2023 | ||
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Indian Bank@6.7% p.a
₹1,14,212
All you need to know about Indian Bank FD Interest Rate
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Types of Indian Bank Deposits
- Regular Fixed Deposit
- The minimum deposit amount is ₹1,000.
- The period ranges from 6 months to 10 years.
- A premature withdrawal facility is available.
- Provides options for monthly and quarterly payouts.
- An additional 0.50% p.a. is offered to senior citizens for an amount up to ₹10 crores.
- Capital Gains
- The minimum deposit amount is ₹1,000.
- The period ranges from 7 days to 3 years.
- A premature withdrawal facility is available.
- Short Term Deposits
- The minimum deposit amount is ₹1,000.
- The period ranges from 7 days to 180 days.
- A premature withdrawal facility is available.
- Senior Citizens get an additional interest of 0.50% p.a for amounts up to ₹10 crores.
- IB Tax Saver Scheme
- The minimum deposit amount is ₹1,000.
- The maximum deposit amount is ₹1,50,000.
- The period ranges from 5 years to 10 years.
- A premature withdrawal facility is available.
- The motive of this FD is to offer both earnings and tax benefits.
- Allows to save tax under Section 80C of the Income-Tax Act,1961.
- Provides options for monthly and quarterly payouts.
- Money Multiplier Deposits
- The minimum deposit amount is ₹1,000.
- The period ranges from 6 months to 10 years.
- A premature withdrawal facility is available.
- Senior Citizens get an additional interest of 0.50% p.a for amounts up to ₹10 crores.
- Motor Accident Claim Tribunal Deposit (MACAD) Scheme
- The minimum deposit amount is ₹1,000.
- The period ranges from 3 years to 18 years.
- A premature withdrawal facility is available.
- The scheme offers facilities for Motor Accident Claims Annuity Deposit (MACAD), EMI (Equated Monthly Installments) and PED (Principal Equally Distributed along with monthly interest).
- IND Non-Callable Deposit
- The minimum deposit here is above ₹5 Crores.
- The maximum has no limit.
- The period ranges from 7 days to 10 years.
- A premature withdrawal facility is not available during the tenure of the deposit.
- Provides options for monthly and quarterly interest payouts.
- IND SHAKTI 555 DAYS
- The minimum deposit amount is ₹5,000.
- The maximum deposit is less than ₹2 Crores.
- The period is for 555 days.
- The interest rate is 7.00% per annum.
- Additional interest offered to Senior Citizens is 0.50 % p.a.
- A premature withdrawal facility is available.
- This Scheme was launched w.e.f. 19.12.2022 and is valid up to 31/03/2023.
- The scheme aims to attract new retail customers to boost its retail term deposits portfolio.
- IND SUPER 400 DAYS
- It offers a higher interest rate with a fixed tenure of 400 days.
- The minimum deposit amount is ₹10,000.
- The maximum deposit is less than ₹2 Crores
- It gives a 7.10% p.a interest rate to the general public and a 7.15 % p.a for women.
- Additional interest offered to Senior Citizens is 0.50 % p.a.
- A premature withdrawal facility is available.
- In case of premature withdrawal, a 1 % penalty will be imposed.
- The scheme is valid up to 30/04/2023.
Pros of investing in Indian Bank FD-
- Flexible period- The Indian Bank's Fixed Deposits have time ranging from 7 days to 5 years and more. Hence, it is suitable for all kinds of customers.
- Auto renewal facility- Indian Bank provides an option for auto-renewal of Fixed Deposits. It means at the time of the maturity of the deposits they will automatically get renewed.
- Premature withdrawal- Indian Bank provides options for premature withdrawal of the FD as per the customers' needs.
- Loan facility- Some of the Fixed Deposits also allow loans regarding the deposits.
- Additional interest for seniors- Indian Bank offers an additional rate of interest on Fixed Deposits for senior citizens, super senior citizens as well as staff.
- Liberal pay-outs- Indian Bank provides options for monthly or quarterly interest pay-outs on FD. This is beneficial for people who wish for regular income.
- Tax-benefits- Indian Bank's IB Tax Saver Scheme offers exemptions under Section 80, thus helping to save taxes.
Cons of investing in Indian Bank Fixed Deposits
- Not dynamic- Interest rates on Indian Bank FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed-rate- Fixed deposits offer a fixed rate on the investment. Hence, no benefit can be availed for higher returns in cases of an increase in market interest rates.
Eligibility Criteria to Open a Fixed Deposit with Indian Bank
To invest in Indian Bank Fixed Deposits, the following are eligible-
- Resident individual
- Hindu undivided family or HUF
- Parents or guardians of minors can invest on behalf of minors.
- Trusts, public and private limited organizations
- Sole proprietorship
- Partnerships
- NRIs are eligible to invest through NRE and NRO accounts only
Documents Required to Open an Indian Bank Fixed Deposit
- Identity proof includes- a Pan card, Voter ID, Aadhaar card, Ration card, Driving license, and Passport.
- Address proof which includes- Telephone bill, Electricity bill, Passport, Bank statement etc.
- Two passport-size photographs.
How To Open A FD Account with Indian Bank
Online way-
Step 1- Login to your Indian Banking mobile application.
Step 2- Select 'Term Deposit' and proceed.
Step 3- Fill in the required details such as personal details, identity and address proof, nominee details etc.
Step 4- Enter the amount of the deposit and select the tenure of FD.
Step 5- Enter the One-Time Password (OTP) to proceed further.
Step 6- Once it is authorized, the FD account will be opened.
Step 7- Download the acknowledgement slip for future reference.
Offline way-
Step 1- Visit the nearest Indian Bank branch.
Step 2- Take the FD application form.
Step 3- Fill in the required details and submit the necessary documents.
Step 4- Submit the form to the branch.
Step 5- The bank will provide an FD receipt.
Indian Bank Fixed Deposit - Premature Withdrawal and Penalty
- Fixed Deposits with Indian Banks can mature before their due date. But the tax-saving FD is not accepted for premature withdrawals.
- Deposits below ₹5 lakhs which are kept for a tenure of 181 days, are not prone to any penalty.
- Deposits greater than ₹5 lakhs, if withdrawn before 181 days, shall be prone to a penalty of 1%.
Tax on Indian Bank Fixed Deposit
- Fixed Deposits with Indian Bank Tax Saver Scheme, is free from taxes for deposits up to ₹1,50,000 per annum under section 80C of the Income-tax Act,1961.
- Interest income from the Indian Bank's FD applies to taxes by the tax slab.
- Interest income is also subject to TDS @10% if the income from Indian Bank FD exceeds ₹40,000 p.a. (For senior citizens, the limit is ₹50,000 p.a. )
- In case of failure to provide PAN card details, TDS will be applicable @ 20%.
FAQs
Can an account holder close their Indian Bank FD at any time?
Yes, an investor can close his/her FD with Indian Bank anytime as per their wishes. But in the case of IB tax saver FD, premature closure is not allowed.
What is the minimum and maximum period for the Indian Bank FD?
The minimum period for Indian bank FD is 1 year and the maximum period for Indian bank FD is 3 years.
Can an investor deposit additional amounts in the current FD with an Indian bank?
No, any additional amount cannot be added in between once a FD has been started with a fixed amount.
What are the required documents to open a FD account with Indian Bank?
An investor needs an identity proof along with address proof and two passport sized photographs to open a FD account with Indian bank.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.