Indian Bank has increased the interest rates of fixed deposits (FD) by up to 50 basis points (bps) for select tenors. The new interest rates are effective from October 4, 2022, according to the bank’s official website.
The bank will now offer interest rates ranging from 2.80 percent to 5.75 percent on fixed deposits, with maturities ranging from 7 days to 10 years. The bank has raised the interest rate from 121 days to 180 days deposits by 5 bps to 3.85 percent, up from 3.75 percent. The interest rate for tenures 181 days to less than 9 months has been raised to 4.50 percent from 4 percent, a 50 basis point increase. The bank interest rate was raised by 35 basis points to 4.75 percent on terms of 9 months to less than 1 year from earlier 4.40. The Indian bank has raised interest rate by 5 bps on tenure of one year to 5.50% and for 2 years to less than 3 years, it is now 5.60% from earlier 5.55%.
Note that the revised interest rates on domestic term deposits apply only to new deposits and the renewal of maturing deposits.
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The bank has launched special fixed deposits offering higher interest rates than regular deposit rates. However, this is only a limited period offer and is valid up to October 31, 2022.
According to the Indian Bank website, “A Special Term Deposit Plan for 610 days @ 6.10 % p.a for Public , 6.25 % p.a for Senior Citizens & 6.50 % p.a for Super Senior Citizens (80 Years and above ) valid up to 31.10.2022.”
For deposits closing after 7 days and above, the bank said “No penalty to be levied for pre closure of deposits provided the deposit has been retained for at least 181 days i.e. eligible interest rate will be the applicable card rate for the actual period run prevailing on the date of deposit. For deposits closed before 181 days, eligible rate will be the applicable card rate for the actual period run prevailing on the date of deposit less 1.00% p.a. as foreclosure charges.”