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Indian Bank FD - Scheme, Eligibility, Documents

Indian Bank Fixed Deposit Highlights

Last Updated 15th Jul 2021

Indian Bank fixed deposit is a reliable, secure and beneficial investment option that offers various benefits such as guaranteed returns, Government insurance, loan borrowing facility and flexible fixed deposit tenure.

Interest Rate 2.90% to 5.25%
Minimum Tenure 7 days
Maximum Tenure 10 years
Deposit Amount Rs. 100
Maximum Deposit No Limit
    Earn upto 6.95% on FD APPLY NOW

    Indian Bank FD

    Indian Bank is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 7 days to 10 years. Apart from that, Indian Bank FD offers regular returns on fixed deposits ranging between 2.90% to 5.25%. For senior citizens, the interest rates on fixed deposits range between 3.40% to 5.75%. In addition to that, Indian Bank fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

    Types of Indian Bank Fixed Deposit Schemes

    Different type of Indian Bank term deposit products offered to the investors are listed as follows:

    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

    Eligibility:

    • 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

    Eligibility:

    • Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

    Benefits of Indian Bank FD

    Indian Bank fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are mentioned below:

    • Guaranteed returns: The best thing about Indian Bank FD is that it offers guaranteed and assured returns to the investors. The return offered on a fixed deposits is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, Indian Bank offers FD rates up to 5.25%. The interest rates offered on Indian Bank FD is not only assured but also way higher than a savings account.
    • Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, Indian Bank term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
    • Loan against FD: The investment made in an FD scheme is not only a reliable investment option but can also act as an asset. This is because Indian Bank fixed deposit allows one to borrow a secured loan against Indian Bank FD. Benefits of Loan Against FD of Indian Bank are as follow:
      • Loan against FD of Indian Bank offers the loan amount upto 90%-95% of the FD amount.
      • The interest charged on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
      • Loan against FD of the Indian Banks flexible repayment options.
      • The processing fee of Loan Against FD in the Indian Bank is nil.
      • It is a hassle-free loan and does not require the depositor to break the FD.
    • Flexible tenures: Indian Bank FD offers the investors the flexibility to choose the investment tenure as per their convenience. Indian Bank offers fixed deposit for a minimum tenure of 7 days up to a maximum tenure of 10 years. Indian Bank offers different interest rates across FD tenures.
    • Flexible investment: Apart from the flexibility of tenure, Indian Bank fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs. 100. Apart from that, one can invest in the Indian Bank FD up to a maximum of No Limit.

    Premature Withdrawal Terms and Conditions

    Though a fixed deposit with Indian Bank means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

    Withdrawing funds prematurely from Indian Bank will attract an interest rate lowered by Allowed below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of Indian Bank fixed deposits with tenure less than seven days, the bank does not pay any interest.

    Eligibility Criteria for Indian Bank FD

    Indian Bank FD facility can be availed by the following type of investors:

    • Indian Citizens
    • Members of HUFs or the Hindu Undivided Family
    • Business firms
    • Local governing bodies
    • Government departments
    • Employees of private limited companies
    • Trust accounts

    Documents for Indian Bank FD

    Indian Bank fixed deposit requires one to submit the following documents:

    • Passport size photographs
    • Identity proofs such as Aadhar card, passport, PAN card, and driving license.
    • Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
    • Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
    • Bank account details such as passbook and account number.

    Credit Card Against Indian Bank FD

    Credit Cards againstIndian Bank FD are secured credit cards. They are availed against the amount deposited in the term deposits. They are an ideal option for individuals with low CIBIL score and salary. Below mentioned are the important features of Credit Cards against Indian Bank FD:

    • The limit offered on the credit card depends upon the amount deposited in the fixed deposits. Generally, banks offer around 80% of the deposit amount as the total credit limit on the card.
    • Credit Cards against the fixed deposits require minimum documentation.
    • The minimum tenure of the term deposits should be 6 months to avail credit card against it.
    • Secured Credit cards also offer discounts, cashback and rewards.
    • The cardholder continues to earn the same applicable interest rate on FD.

    FAQs

    What is the loan against FD repayment tenure in Indian Bank?

    Loan against FD is the  facility which allows the investor to avail the loan against the amount deposited in the term deposit. Indian Bank offers the loan against FD facility to the FD investors with a repayment tenure of up to 10 years.

    What is the minimum investment for FDs under Indian Bank?

    Indian Bank Fixed Deposit is one of the safest investment avenues and it can be availed with a minimum deposit of Rs. 100.

    What is the minimum amount for a fixed deposit in Indian Bank?

    The minimum amount required for a fixed deposit investment in Indian Bank fixed deposit is Rs. 100.

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

    Currently, Indian Bank offers an interest rate ranging between 2.90% to 5.25% on its fixed deposits.

    What is the penalty for early withdrawal in Indian Bank?

    Bank charges penalty on premature withdrawal of fixed deposits. The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

    What is the minimum FD tenure for which a fixed Deposit account can be opened in Indian Bank?

    Indian Bank fixed deposit can be opened with a minimum tenure of 7 days. The tenure of the Indian Bank fixed deposits ranges from 7 days to 10 years.

    Can I deposit additional amount in my Indian Bank 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 KYC documents and Passport size photos.

    In how many years FD doubled in the Indian Bank?

    The time Indian Bank fixed deposits will take to double the initial amount will depend upon the rate of interest offered on the FD. You can calculate the maturity amount of the Indian Bank FD at MyLoanCare by entering the amount you want to deposit and the interest offered on FD.

    Can an NRI open a Indian Bank fixed deposit account?

    No, Non-Resident Individuals are not allowed to invest in Indian Bank schemes. It means that they are not eligible to invest in fixed deposits.

    Is the Indian Bank safe for FD?

    Yes, the Indian Bank is one of the safest avenues for any investments. Indian Bank is backed by the Government of India and the returns on any investment including fixed deposits are guaranteed.

    Is it wise to take a loan against FD from the Indian Bank?

    Yes, opting for a Loan Against FD is an excellent decision. The reasons to take loan from Indian Bank are:

    • It offers the loan upto 90%-95% of the FD amount.
    • The interest levied on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
    • Loan against FD offers flexible repayment options.
    • The processing fee of Loan Against FD is Nil.
    • It is a hassle-free loan and requires minimum documentation.
    • Loan against FD helps the depositors to avoid the option of premature withdrawal.

    However, there might be a chance that the alternative credit option is offering lower rates with better facilities. In that case, individuals must compare and decide on the credit option.


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    Indian Bank News - Jul 2021
    • 2021-07-15 : Indian Bank merger with Allahabad Bank - Change in IFSC
      The Indian Bank, which has merged with the Allahabad Bank, carried out a software migration over the weekend. As the merger got completed, new rules had been issued by the bank with regard to its services. Existing customers were asked on July 1 to get a new IFSC code to carry out online transactions smoothly.
    • 2021-06-01 : Indian Bank reported a Q4 profit of 1,709-cr
      Indian Bank reported a net profit of Rs 1,708.85 crore in the March-ended quarter. Total income during the January-March quarter of 2020-21 increased to Rs 10,647.87 crore. It was Rs 6,334.37 crore in the same period of 2019-20. The net profit of the bank backed by retail loan like home, LAP, personal, two-wheeler, car education and doctor loan along business and mudra loan was recorded at Rs 3,004.68 crore.
    • 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.
    *Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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