The interest rate on fixed deposits at the state-owned Indian Bank has been raised, with effect from August 4. The most recent rates will apply to fixed deposits of less than Rs 2 crore. The move comes after several other lenders raised interest rates on deposits and loans in response to the RBI’s tight monetary policy. On Friday, the RBI’s Monetary Policy Committee raised the key repo rate by 50 basis points to 5.4 percent, the highest level since 2019.
The interest rate on a one-year fixed deposit has been raised by Indian Bank. The remaining tenure rates remain unchanged.
Indian Bank’s FD Interest Rate (On Deposits Below Rs 2 Crore):
7 days to 14 days – 2.80% of the general public; 3.30% of senior citizens
15 to 29 days – 2.80 percent for the general public; 3.30 percent for senior citizens
30 days to 45 days – 3.00% for the general public; 3.50% for senior citizens
46 days to 90 days – 3.25 percent for the general public; 3.75 percent for senior citizens
91 to 120 days – 3.50 percent for the general public; 4.00 percent for senior citizens
121 days to 180 days – 3.75 percent for the general public; 4.25 percent for senior citizens
181 days to less than 9 months – 4.00% for the general public; 4.50% for senior citizens
9 months to less than a year – 4.40 percent for the general public; 4.90 percent for senior citizens
1 year – 5.30% for the general public; 5.80% for senior citizens
Above 1 year to less than 2 years – 5.40% for the general public; 5.90% for senior citizens
2 years to less than 3 years – 5.50% for the general public; 6.00% for senior citizens
3 years to less than 5 years – 5.60% for the general public; 6.10% for senior citizens
5 years – 5.60% for the general public; 6.10% for senior citizens
Above the age of 5,60% for the general public and 6.10% for senior citizens.
According to the bank’s website, the additional rate of interest payable for Domestic Term Deposit for Senior Citizens is 0.50 percent p.a. for amounts up to 10 crore. In the case of Short Term Deposits, Fixed Deposits, and Money Multiplier Deposit Schemes, the additional rate would be offered on deposits of 15 days to 10 years over the card rate.
“Similarly, for Recurring Deposit accounts, additional interest rates would be available from 6 to 120 months” (In multiples of 3 months). The above limit applies to all types of term deposits held in the name of the Senior Citizen as the primary account holder at one or more branches combined. However, no single deposit of more than Rs 2 crore may be opened in a single day within the overall limit of Rs 10 crore tagged to a single CIF,” it added.
It also stated that deposits opened by Senior Citizens under the Capital Gains Scheme Type B (Term Deposits) 1988 Scheme are ineligible for this benefit. Similarly, in the case of term deposits held in the name of a HUF, the Karta of the HUF, even if a senior citizen, is not eligible for a higher rate of interest because the deposit’s beneficial owner is the HUF, not the Karta in his individual capacity.