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Indian Bank FD Interest Rates

Indian Bank FD Rates 2020

Last Updated 14th Sep 2020

Indian Bank is one of most reliable FD providers amongst a number of FD providers in the market. Indian Bank FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on Indian Bank FD is 5.25%. Latest Indian Bank FD interest rate for senior citizens, on the other hand ranges between 3.40% to 5.75%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 14 days 2.90% 3.40%
15 days to 29 days 3.05% 3.55%
30 days to 45 days 3.05% 3.55%
46 days to 90 days 3.05% 3.55%
91 days to 180 days 3.95% 4.45%
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Indian Bank Fixed Deposit (FD)

Indian Bank FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of Indian Bank Fixed Deposit are:

  • Deposit Amount: Indian Bank FD can be opened with an amount as a low ₹ 100 to up to No Limit.
  • FD Tenure: Ranges between 7 days to 1 year.
  • Interest Rate Range: 2.90% p.a. to 5.25% p.a.
  • Senior Citizens FD Rate: 3.40% to 5.75% p.a.
  • Highest Interest Rate: As per today’s rate, Indian Bank’s highest interest rate on FD is 5.25% offered for a tenure of 1 year.
  • Safety of Indian Bank Deposits: Indian Bank deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: Indian Bank provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes: Re investment plan, Regular Fixed Deposit

Indian Bank Best FD Plan

We need to compare tenure wise latest FD rate of Indian Bank to choose the tenure at which it provides the highest interest rate. Indian Bank FD rates are best for the deposits with a tenure of 1 year to 1 year, wherein the current FD rate of interest is 5.25% p.a

If one is looking to invest in short term deposits with Indian Bank, FD interest rates range from 2.90% p.a. to 4.45% p.a for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Indian Bank FD rates for senior citizens range from 3.40% to 4.95% p.a.

If one is looking to invest in long term deposits, Indian Bank FD interest rates with tenure of 5 years to 10 years are a good choice with interest rates on deposits with a tenure of 10 years at 5.15%. Senior citizens are offered special rates from bank with highest deposit rates of 5.65% p.a. on long term FDs.

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:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

Documents required to open Fixed Deposit Account in Indian Bank

  • 2 Photographs
  • Identity Proof: PAN Card, Voter ID Card, Passport, Driving License
  • Address Proof: Telephone Bill, Electricity Bill, Bank Statement With Cheque

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. Indian Bank offers Loan against FD at the rate of 3.9% to 6.25%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 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 ₹ 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 ₹ 90,000 availed for 1 month only. The amount he repays after 1 month is ₹ 90,744. So, the interest charged on the loan taken is ₹ 744.

Loan Against Fixed Deposit

FD Account Opening Process at Indian Bank

To open a Fixed Deposit account in Indian Bank, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the Indian Bank FD after reading the terms and conditions.

Nomination Facility on Indian Bank FD

Indian Bank offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a Indian Bank fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

Indian Bank Fixed Deposit Scheme

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

FAQs

✅What is the highest FD rate for Indian Bank?

You can earn a maximum interest of 5.25% on Indian Bank fixed deposit.

✅Are there any special rates for senior citizens FD 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 2.90% to 5.25%. Compared to this, the rate of senior citizens FD are in the range of 3.40% to 5.75%.

✅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 ₹ 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 2 Photographs, Identity Proof: PAN Card, Voter ID Card, Passport, Driving License, Address 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

✅What is the current interest rate on FD in Indian Bank?

Current interest for FD in Indian Bank ranges between 2.90% - 5.25%.

✅Can a customer open a FD account online in Indian Bank?

Yes, you can submit your application for opening a FD account on the website of Indian Bank. After submitting the application, you will be contacted by the bank’s representative for further process which includes filling an application process and submitting KYC documents.

✅In how many years FD will double in Indian Bank?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.25%. For Indian Bank FD the number of years in which your FD will get doubled is; 72/5.25 = 14

Related Topics
Latest Blogs
Indian Bank News - Sep 2020
  • 2020-02-11 : Revised FD rates for Indian Bank
    Indian Bank changed its fixed deposits rate. FD rate for 7 to 45 days is 4.50%, for 46 to 90 days it is 5% and 91 to 120 days it is 5.50%. The fixed deposit rate for 121 days to 364 days is 5.75%. Further, the FD rate for one year is 6.40%, above one year to less than two years it is 6.30% and for and above two years it is 6.25%. The revised rates will be effective from 10 February 2020.
  • 2020-01-06 : New FD rates for Indian Bank
    With effect from January 3, 2020, Indian Bank revised its interest rates on FD on certain tenors by 5-25 basis points. The rate is reduced by 25 basis points for a period of 91-120 days to 5.50%, and for 121 days to less than a year it is set at 5.75%. For a period of one year the FD rate is reduce by 5 basis points to 6.40%. In addition to that, the rate is reduced by 20 basis points above 1 to 2 years and by 25 basis points for 2 years and above. For tenors of 7-90 days the rates remain unchanged.
  • 2019-11-06 : New FD rates for Indian Bank for certain tenures
    Valid from November 4, 2019, Indian Bank revised its fixed deposit rates on certain tenures. The rates remain the same for some periods. For 7-45 days, the interest rate remains at 4.50%; for 46-90 days, the rate is 5.00%, rate for 91-120 days is 5.75%, and for 121 days to 1 year, the fixed deposit rate is unchanged at 6.00%. In addition to that, for one year, the new rate is 6.45%, and for 1-2 years, the revised rate is 6.50%. Even for 2-5 years and for five years and above the rates remain unchanged at 6.50% and 6.30% respectively.
  • 2019-09-04 : Indian Bank revises its FD rates
    Indian Bank revises its FD rates with effect from September 4, 2019, on certain tenures. For a tenure of 91 days, the rate has been revised to 5.75 percent from 6.25 percent; the tenure for 121 days to 1 year has been revised as 6 percent from 6.50 percent; for 1 year the rate is 6.60 percent which earlier was 6.75 percent. For longer tenure of 3-5 years, the revised rate is 6.50 percent and for 5 years and above the tenure is 6.30 percent. The previous rate for these yearly tenures was 6.75, 6.90, and 6.50 percent, respectively.
  • 2019-02-18 : Indian Bank raises interest rates on term deposits
    Public sector lender, Indian Bank has revised interest rates on domestic term deposits with immediate effect. Indian Bank announced upward revision in the interest rate on domestic term deposits by 50 bps to 90 bps for an amount less than Rs. one crore across various tenors from three years to less than five years, five years and above five years.
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