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Indian Bank Fixed Deposit

Updated 06 Dec 2023

Indian Bank was incorporated on 5th March 1907 as a nationalised 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. 

Types of Indian Bank Fixed Deposits

  • Regular Fixed Deposit
  • Capital Gains FD
  • Short Term Deposits 
  • IB Tax Saver Scheme
  • Money Multiplier Deposits 
  • Motor Accident Claim Tribunal Deposit (MACAD) Scheme 
  • IND Non-Callable Deposit
  • IND SHAKTI 555 DAYS
  • IND SUPER 400 DAYS

Benefits of Indian Bank Fixed Deposit Schemes

The following are the benefits of investing in the FD Schemes offered by the Indian Bank:

  • 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, and 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- The Indian Bank's IB Tax Saver Scheme offers exemptions under Section 80, thus helping to save taxes.  

Features of Indian Bank Fixed Deposit Schemes

Features of Indian Bank Regular Fixed Deposit Scheme

  • 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.

Features of Indian Bank Capital Gains Fixed Deposit Scheme

  • The minimum deposit amount is ₹1,000. 
  • The period ranges from 7 days to 3 years. 
  • A premature withdrawal facility is available.


Features of Indian Bank Short-Term Deposits Scheme

  • 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.

Features of Indian Bank 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.

Features of Indian Bank 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.

Features of Indian Bank 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).

Features of Indian Bank 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.

Features of Indian Bank SHAKTI 555 Days Scheme

  • 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.

Features of Indian Bank SUPER 400 Days Scheme

  • 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.

Eligibility Criteria

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 organisations 
  • Sole proprietorship 
  • Partnerships 
  • NRIs are eligible to invest through NRE and NRO accounts only 
     

Documents Required

Identity proof includes- 

  • PAN card, 
  • Voter ID, 
  • Aadhaar card, 
  • Ration card, 
  • Driving license,
  • Passport


Address proof which includes- 
 

  • Telephone bill, 
  • Electricity bill, 
  • Passport, 
  • Bank statement etc. 
  • Two passport-size photographs. 
     

How to Open an Indian Bank Fixed Deposit Account

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 authorised, the FD account will be opened. 
Step 7 - Download the acknowledgement slip for future reference.

Offline:


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.
 

How to Close Indian Bank FD?

To close your FD account prematurely, follow these steps:

  • Walk into your local Indian Bank branch.
  • Inform a bank official of your decision to terminate the FD prematurely.
  • They will furnish you with an early termination form. Ensure all details are correctly filled.
  • Complete your KYC.
  • Submit the FD certificate and a piece of identification.
  • After the bank validates and processes your application, the principal and accrued interest (after any deductions) will be deposited into your account.

Indian Bank FD Scheme Premature Withdrawal Terms and Conditions

  • Fixed Deposits with Indian Bank 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%.

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 an Indian bank FD is 1 year, and the maximum period for an 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 an FD has been started with a fixed amount.  
 

  • What are the required documents to open an FD account with Indian Bank? 
     

An investor needs identity proof along with address proof and two passport-sized photographs to open an FD account with an Indian bank. 

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Calculate Indian Bank FD Returns

₹1,00,000
6%
365
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Maturity Amount₹1,06,000

Understanding Fixed Deposit

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