Indian Bank Interest Rates on FD, Oct 2017
Fixed Deposit Interest Rate of Indian Bank
| Tenure | General Rates | Senior Citizen Rates |
|---|---|---|
| 7 days to 14 days | 4.00% | 4.50% |
| 15 days to 29 days | 4.00% | 4.50% |
| 30 days to 45 days | 4.50% | 5.00% |
| 46 days to 90 days | 4.50% | 5.00% |
| 91 days to 120 days | 5.25% | 5.75% |
| 121 days to 180 days | 5.25% | 5.75% |
| 181 days to 269 days | 5.75% | 6.25% |
| 9 months to 364 days | 6.25% | 6.75% |
| 1 year | 6.50% | 7.00% |
| 1 year 1 day to 1 year 364 days | 6.25% | 6.75% |
| 2 years to 2 years 364 days | 6.25% | 6.75% |
| 3 years to 10 years | 6.00% | 6.50% |
The above rates are applicable for deposits of below Rs. 1 crore.
Indian Bank FD Interest Rates
Indian Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of Indian Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Indian Bank are:
- Automatic renewal facility for equal period
- Nomination facility available
- Earn interest with ease liquidity
Indian Bank Fixed Deposit Rates
The factors affecting Fixed Deposit interest rates are as follows:
Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.
Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.
Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.
Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.
Fixed Deposit Schemes Indian Bank
Re investment plan
Description:
- This is a term deposit which reinvests all earned dividends, capital gains, and interest back into buying units or shares, rather than paying out in physical cash.
- Availability of auto renewal facility
- Nomination facility available
- Interest on deposit is compounded quarterly
- Loan facility upto 90 per cent is available on the deposit
- Interest earned on deposit is subject to TDS
Who is eligible?
- Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm
Regular Fixed Deposit
Description:
- This deposit scheme allows the depositor to make investment into the deposit to earn higher returns along with a flexibility and liquidity.
- Automatic renewal facility for equal period
- Nomination facility available
- Earn interest with ease liquidity
Who is eligible?
- Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm
Indian Bank FD Interest Calculator
Indian Bank fixed deposit rates calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. FD maturity amount that you will get depends on the following four parameters
- Deposit amount – This is the initial amount deposited by a customer in Indian Bank. Bank may offer higher interest rate on larger deposits. Indian Bank offers deposit amount in the range of Rs. 100 to No Limit.
- Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. Indian Bank offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits held for a shorter period. Highest interest rate offered by Indian Bank is 6.50% for deposit amount below Rs. 1 crore and the lowest interest rate offered by Indian Bank is 4.00%
- Period of deposit - Bank offers low interest rate for short tenure FDs and higher interest rate for long tenure FDs. Bank offers a rate of 4.00% for a 7 Days FD and a rate of 4.00% for a 10 Years Years FD.
- Interest Compounding Frequency - This calculates maturity amount based on monthly, quarterly, half yearly or annual frequency.
Illustration: Mr. A opens a FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 4.00%. In this case, the maturity amount at the end of 7 Days will be Rs. 100,076 and includes the principal and total interest earned on the principal amount during the period at Rs. 76. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.
Indian Bank calculates interest earned on its fixed deposits on quarterly basis.
FD in Indian Bank – Premature Withdrawal
Premature closure of Term Deposit with Indian Bank is along with the lower interest rate of 1% for deposits above Rs. 5 lakh than the contracted rate. The penal provisions for premature closure on Indian Bank FD are subject to change from time to time and may also vary with deposit schemes.
Loan against Fixed Deposit Indian Bank
Indian Bank offers loan up to 90% against its own deposit. Note that Indian Bank will not give you loan against FD of any other bank.
Maximum loan tenure is restricted up to the maximum tenure of the FD.
Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in Indian Bank. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.
Documents required to open Fixed Deposit Account in Indian Bank
- PAN Card2 PhotographsIdentity Proof: PAN Card, Voter ID Card, Passport, Driving LicenseAddress Proof: Telephone Bill, Electricity Bill, Bank Statement With Cheque
FAQs on Indian Bank Fixed Deposit
You can earn a maximum interest of 6.50% on Indian Bank fixed deposit.
Are there any extra benefits for senior citizens on fixed deposit of Indian Bank?Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 4.00% to 6.50%. Compared to this, the rate of senior citizens FD are in the range of 4.50% to 7.00%.
What is the tenure range for Indian Bank Fixed Deposit?The tenure ranges from 7 days to 10 years.
Is there any minimum amount that I have to give for opening a Fixed Deposit with Indian Bank?The minimum deposit amount required to book an FD with Indian Bank is Rs. 100.
Can I deposit additional amount in my FD account?No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.
Who is eligible for opening an FD account in Indian Bank?All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.
What documents are required to open an FD account in Indian Bank?The documents required to open an FD account in Indian Bank includes PAN Card2 PhotographsIdentity Proof: PAN Card, Voter ID Card, Passport, Driving LicenseAddress Proof: Telephone Bill, Electricity Bill, Bank Statement With Cheque.
Is it possible to change the tenure of my existing fixed deposit account with Indian Bank?No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.
What are the implications of opening an FD bank account without having PAN?Following are the implications for the customers opening an FD account with Indian Bank without their PAN card
- TDS will be deducted at the rate of 20% as against 10% under section 206AA
- NO TDS credit from the Income Tax department
- NO TDS certificate will be issued
- Form 15G/H and other exemption certificates will be invalid and penal TDS will apply
