Overview of Indian Bank Fixed Deposit (FD)
Indian Bank offers a variety of fixed deposit schemes that ensure attractive returns on your investments while also ensuring that your money remains safe and secure with easy liquidity as well.
Tenure periods range from 7 days to 10 years. There is an additional interest rate of 0.50% for senior citizens for deposit amounts of up to Rs.10 crore. Interest rate ranges from 3.05% to 5.50% p.a.
Indian Bank Fixed Deposit (FD)
Indian Bank lets investors get the most out of their savings by offering them fixed income solutions that can help them strike a balance between liquidity and returns. With varying deposit periods and interest rates that are set in accordance to the amount held in a deposit account, investors can optimise their financial plans by opting for FD schemes that suit their financial needs.
These instruments can be opted for to create an income stream ideal for those without a regular income source e.g. retirees or to grow savings for the long-term.
Indian Bank Fixed Deposit Features
Indian Bank offers a range of fixed deposits with following features:
- Earn good interest with easy liquidity
- Quarterly or monthly interest with a discount
- Loan, foreclosure, nomination etc. are available
- Automatic renewal facility for equal period
Indian Bank FD Eligibility Criteria
Any individual or minor who fulfils the Know Your Customer (KYC) requirements can open a fixed deposit account in Indian bank. The bank also accepts deposits from NRIs in terms of NRE and NRO deposits.
Indian Bank Fixed Deposit Schemes
The FD schemes offered by Indian Bank are the following:
- Capital Gains
- Term Deposit
- IB Tax Saver Scheme
- Money Multiplier Deposits
- Fixed Deposits
- Short-Term Deposits
Indian Bank Fixed Deposits for Senior Citizens
Indian Bank provides an additional interest rate of 0.50% to senior citizens above 60 on most of its fixed deposit schemes up to ₹ 5 crores.
Indian Bank also offers a fixed deposit scheme for senior citizens with additional interest and value additions. The depositors must submit age proof to show they have completed 60 years. The minimum amount accepted under the scheme is ₹ 1,000 and maximum is Rs.5 crores. It also has features like:
- Joint accounts but the first-named person should be a senior citizen
- Free funds transfer up to Rs.5,000 pm or interest earned whichever is higher
- Loan, foreclosure, nomination facilities are available
- Automatic renewal facility for equal period
- Minimum penalty on foreclosure of deposits
Indian Bank Tax Saver Fixed Deposits
The tax-saver FD offered by Indian Bank is called the IB Tax Saver Scheme. It has the following features:
- Interest rate is 5.40% p.a.
- Minimum amount of Rs.1,000 and maximum of Rs.1.5 lakh.
- Tax benefits under Section 80C of Income Tax Act.
- Senior citizens get 0.50% additional interest rate.
- Nomination facility is available.
FAQs on Indian Bank FD
- What is the minimum amount required to open an FD account with Indian Bank?
Minimum deposit accepted under fixed deposits at Indian Bank is Rs.1000.
- What is the maximum amount that can be deposited in an Indian Bank FD account?
There is no maximum limit for deposits accepted under fixed deposits at Indian Bank. However, for deposits of above ₹ 5 crore, acceptance of such deposits will be at the approval of the Treasury Branch.
- What is the minimum / maximum period for which funds can be held as fixed deposits with Indian Bank?
Indian Bank allows FDs for a minimum of 7 days, where the minimum amount of investment is Rs.1 lakh. The maximum period allowed is normally 10 years.
- What is the procedure to open a fixed deposit account at Indian Bank?
Anyone wishing to open a FD can walk into an Indian Bank branch and fill up a form, submit KYC documents and deposit the amount via cash, cheque or demand draft to open an FD.
- What are the interest rates offered on Indian Bank fixed deposits?
Indian Bank offers fixed deposits in two slabs—deposits below Rs.2 crore and above it. Returns vary between 3.05% to 5.50% p.a. on short-term deposits to 5.40% p.a. on long-term deposits. Rates vary according to the tenure of the deposit which can be between 7 days to 3 years and above.
- Are FD accounts with Indian Bank taxable?
Yes, fixed deposits with Indian Bank are taxable as per the Income Tax Act, 1961. As per current rules, if the total interest on deposits, per depositor, per financial year, per branch is more than Rs.10,000/- the depositor has to pay tax on the interest.
- Are loans provided against FDs at Indian Bank?
Yes, loans are available against fixed deposits at Indian Bank. Facility deposit, a type of term deposit offered by Indian Bank has 90% overdraft facility built in.
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