The move comes after several other lenders also raised interest rates on deposits as well as loans, amid tight monetary policy by the RBI
State-owned Indian Bank has raised interest rates on fixed deposits, effective from August 4. The latest rates will be applicable on fixed deposits below Rs 2 crore. The move comes after several other lenders also raised interest rates on deposits as well as loans, amid tight monetary policy by the RBI. On Friday also, the RBI’s MPC has increased the key repo rate by 50 basis points to 5.4 per cent, which is the highest since 2019.
Indian Bank has revised upwards the interest rate on fixed deposit on only one tenure — 1 year. The rates on the remaining tenures remain the same.
Indian Bank’s FD Interest Rate (On Deposits Below Rs 2 Crore):
7 days to 14 days – For General Public: 2.80 per cent; For Senior Citizens: 3.30 per cent
15 days to 29 days – For General Public: 2.80 per cent; For Senior Citizens: 3.30 per cent
30 days to 45 days – For General Public: 3.00 per cent; For Senior Citizens: 3.50 per cent
46 days to 90 days – For General Public: 3.25 per cent; For Senior Citizens: 3.75 per cent
91 days to 120 days – For General Public: 3.50 per cent; For Senior Citizens: 4.00 per cent
121 days to 180 days – For General Public: 3.75 per cent; For Senior Citizens: 4.25 per cent
181 days to less than 9 months – For General Public: 4.00 per cent; For Senior Citizens: 4.50 per cent
9 months to less than 1 year – For General Public: 4.40 per cent; For Senior Citizens: 4.90 per cent
1 year – For General Public: 5.30 per cent; For Senior Citizens: 5.80 per cent
Above 1 year to less than 2 years – For General Public: 5.40 per cent; For Senior Citizens: 5.90 per cent
2 years to less than 3 years – For General Public: 5.50 per cent; For Senior Citizens: 6.00 per cent
3 years to less than 5 years – For General Public: 5.60 per cent; For Senior Citizens: 6.10 per cent
5 years – For General Public: 5.60 per cent; For Senior Citizens: 6.10 per cent
Above 5 years – For General Public: 5.60 per cent; For Senior Citizens: 6.10 per cent.
According to the bank’s website, for Domestic Term Deposit for Senior Citizens, additional rate of interest payable would be 0.50% p.a. for amount up to ₹10 crore. The additional rate would be offered on deposits of 15 days to 10 years over the card rate in respect of Short Term Deposits, Fixed Deposits and Money Multiplier Deposit Schemes.
“Similarly, for Recurring Deposit accounts, additional interest rate would be eligible for the period from 6 months to 120 months (In multiples of 3 months). The above ceiling is applicable to all types of term deposits standing in the name of the Senior Citizen as the principal account holder at one or more branches put together. However, no Single deposit be opened in a day for more than Rs 2 crore within the overall limit of Rs 10 crore tagged to a single CIF,” it added.
It also said deposits of Senior Citizen opened under Capital Gains Scheme Type B (Term Deposits) 1988 Scheme is not eligible for this benefit. Similarly in the case of term deposits standing in the name of an HUF, the Karta of the HUF is not eligible for higher rate of interest, even if he is a senior citizen, as the beneficial owner of the deposit is the HUF and not the Karta in his individual capacity.
