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** Disclaimer: Indian Bank has not partnered with Bajaj Markets. The information is intended for educational purposes only. You are advised to contact the Banks/NBFCs for additional details.

 

Indian Bank offers various deposit schemes to its customers and one among them is fixed deposit (FD) or time deposit scheme. Indian Bank has four different FD schemes with unique features that cover the needs of all types of customers. The Indian Bank FD interest rates are attractive and range from 2.90% to 5.15%.

 

Any account holder of Indian Bank who satisfies the eligibility criteria can open an FD for an amount as low as Rs. 1000. FDs are minimum risk investments that provide guaranteed returns at the end of the tenor. Read on to know about the features and benefits of Indian Bank fixed deposit schemes.

 

Indian Bank FD (Fixed Deposit)Interest Rates

Check out the Indian Bank FD interest rates given below for a better understanding.

Tenures

Indian Bank FD Interest Rates for Non-Senior Citizens

Indian Bank FD Interest Rates for Senior Citizens

7 days to 45 days

2.80%

3.30%

46 days to less than 3 months

3.35%

3.75%

3 months to less than 4 months

3.35%

3.85%

4 months to less than 6 months

3.50%

4.00%

6 months to less than 9 months

4.00%

4.50%

9 months to less than 1 year

4.40%

4.50%

1 year

5.00%

5.50%

1 year 1 day to less than 2 years

5.05%

5.55%

2 years to less than 3 years

5.10%

5.60%

3 years to less than 5 years

5.20%

5.70%

5 years

5.25%

5.75%

5 years to up to 10 years

5.15%

5.65%

 *The aforementioned Indian Bank interest rates are valid as of 05-Apr-2022, for deposits of up to Rs. 200 crore, and may be subject to change as per bank announcements.

Indian Bank Fixed Deposit Interest Rate Calculator

Deposit Amount
Tenure
Months
Interest Rate
%
Interest Payout
Your Total Maturity Amount is
Your Total Maturity Amount is
Total Investment
Total Interest Earned

Indian Bank FD Interest Rates and Interest Earned for Different Tenures

The Indian Bank fixed deposit monthly income scheme gives the best interest when the investment tenor is 5 years. This provides 5.25% for non-senior citizens.

 

Check out the table showing what the monthly payout would look like for an amount of Rs. 10 lakh for different tenures at the different interest rates in the case of a non-senior citizen.

Tenor

Interest Rates of FD

Rs. 10 Lakh Fixed Deposit Interest Per Month

Total Interest Amount for Rs. 10 Lakh

Maturity Amount for Rs. 10 Lakh

1 year

5.00%

Rs. 4,264

Rs. 51,162

Rs. 10,51,162

2 years

5.10%

Rs. 4,465

Rs. 1,07,144

Rs. 11,07,144

3 years

5.20%

Rs. 4,679

Rs. 1,68,432

Rs. 11,68,432

4 years

5.20%

Rs. 4,805

Rs. 2,30,660

Rs.  12,30,660

5 years

5.25%

Rs. 4,990

Rs. 2,99,432

Rs. 12,99,432

*The Indian Bank FD interest rates are valid as of 05-Apr-2022, and may be subject to change as per the Bank’s discretion.

Indian Bank FD Interest Rates and Interest Earned for Different Tenures - Senior Citizen

The Indian Bank FD interest rates are 0.50% higher for senior citizens than the general customers. The highest interest rate provided is 5.75% for a tenure of 5 years.

 

Check out the table showing what the monthly payout would look like for an amount of Rs. 10 lakh for different tenures at the different interest rates in the case of a senior citizen.

Tenor

Interest Rates of FD

Rs. 10 Lakh Fixed Deposit Interest Per Month

Total Interest Amount for Rs. 10 Lakh

Maturity Amount for Rs. 10 Lakh

1 year

5.50%

Rs. 4,701

Rs. 56,408

Rs. 10,56,408

2 years

5.60%

Rs. 4,926

Rs. 1,18,222

Rs. 11,18,222

3 years

5.70%

Rs. 5,167

Rs. 1,86,011

Rs. 11,86,011

4 years

5.70%

Rs. 5,320

Rs. 2,55,407

Rs.  12,55,407

5 years

5.75%

Rs. 5,536

Rs. 3,32,176

Rs. 13,32,176

*The Indian Bank FD interest rates are valid as of 05-Apr-2022, and may be subject to change as per the Bank’s discretion.

Indian Bank FD Interest Rates and Interest for Different Deposit Amount

The monthly interest payout for an Indian Bank FD of a higher amount is much greater than the lower one. Indian Bank offers interest rates for FDs depending on the type of deposit scheme you choose.

 

Details about the maturity amounts and interest earned for different amounts invested for 5 years as fixed deposit in Indian Bank at the rate of 5.25% have been provided below.

Investment Amount

Monthly Interest

Cumulative interest for 5 years

Rs. 1 Lakh

Rs. 499

Rs. 29,943

Rs. 5 Lakh

Rs. 2,495

Rs. 1,49,716

Rs. 10 Lakh

Rs. 4990

Rs. 2,99,432

Rs. 15 Lakh

Rs. 7486

Rs. 4,49,148

Rs. 20 Lakh

Rs. 9,981

Rs. 5,98,865

Rs. 25 Lakh

Rs. 12,476

Rs. 7,48,581

*The Indian Bank FD interest rates are valid as of 05-Apr-2022, and may be subject to change as per the Bank’s discretion.

Indian Bank FD Interest Rates and Interest for Different Deposit Amount - Senior Citizens

The interesting aspect of an Indian Bank FD is that it can provide an additional 0.50% for senior citizens, depending on the type of the FD chosen and the investment tenor. You can find the details about the maturity amounts and interest earned for different amounts invested for 5 years as fixed deposit in Indian Bank at the rate of 5.75 in this table.

Investment Amount

Monthly Interest

Cumulative interest for 5 years

Rs. 1 Lakh

Rs. 554

Rs. 33,218

Rs. 5 Lakh

Rs. 2,768

Rs. 1,66,088

Rs. 10 Lakh

Rs. 5536

Rs. 3,32,176

Rs. 15 Lakh

Rs. 8304

Rs. 4,98,263

Rs. 20 Lakh

Rs.11,072

Rs. 6,64,351

Rs. 25 Lakh

Rs. 13,841

Rs. 8,30,439

*The Indian Bank FD interest rates are valid as of 05-Apr-2022, and may be subject to change as per the Bank’s discretion.

How is Indian Bank FD Maturity Amount Calculated?

There are two methods used to calculate interest on a fixed deposit. They are:

 

  • Simple Interest

  • Compound Interest.

Banks and NBFCs may use both depending on the tenure and the amount of the fixed deposit.

1. Simple Interest

To calculate simple interest, you can use the formula:

 

Simple interest = (P x R x T)/100

 

Where P stands for Principal amount, R for Rate of interest per annum and T for no. of periods (in years).

 

Let’s take an example. If you invest Rs. 50,000 at 5% per annum for 5 years; you can calculate the interest like this.

 

Simple interest = (50000 x 5 x 5)/100

= Rs. 12,500

 

So, the interest you earn for 5 years is Rs. 12,500.

 

Therefore, if you invest Rs. 50,000 in a fixed deposit with 5% p.a. simple interest, you will get back Rs. 62,500 at the end of 5 years as the maturity amount.

 

Similarly, you can calculate the same for different FD amounts.

2. Compound Interest

In this case, you can earn interest on the principal, and you earn interest on the interest also.

You can use a simple formula to calculate the compound interest.

 

Compound interest = P ( 1 + r/n)nt - P

 

Where P stands for Principal amount, n for no. of times the interest is compounded annually, r for rate of interest per period and t for overall tenure.

 

Let us take an example. If you invest Rs. 50,000 at 5% per annum for 5 years; you can calculate the interest like this.

 

Compound interest = [50000 x ( 1+ 0.05/12)12 x 5] - 50000

= Rs. 14,167.

 

So, the interest you earn for 5 years is Rs. 14,167.

 

Therefore, if you invest Rs. 50,000 in a fixed deposit with 5% p.a. compound interest, you will get back Rs. 64,167 at the end of 5 years as the maturity amount.

 

Similarly, you can calculate the same for different FD amounts.

 

You can use a FD interest calculator to easily carry out these operations in a second. To use the calculator, you just have to enter all values, including tenure, interest rate, etc.

Eligibility Criteria for Opening FD in Indian Bank

The following are eligible to open an FD with the Indian Bank:

 

  • Indian Resident

  • Non-Indian Resident

  • Two or more individuals – Joint account

  • Hindu Undivided Family

  • Minors

  • A firm, a company or an association in its name

How to Open FD in the Indian Bank?

If you are an existing savings bank account holder of Indian Bank, you can easily open a Fixed Deposit account (FD) using mobile banking. If you are not, then you can open an account online or physically visit the nearest Indian Bank branch and fill out the necessary forms. Follow the steps given below to open an Indian Bank FD online.

 

  1. Visit the Google PlayStore and download the IndPay app.

  2. Install the app on your mobile phone.

  3. Enter your personal details like mobile number, name, account number, etc.

  4. Verify your bank registered mobile number using the OTP provided.

  5. Once it is verified, you can go to the ‘Deposits’ section.

  6. Choose ‘Term Deposits’.

  7. Select the tenure and FD amount.

  8. Transfer the amount from the savings account to the new FD account in a few minutes.

  9. Click on ‘OK’ for approving the FD application.

Features & Benefits of Indian Bank Fixed Deposit

Here are the features and benefits of the Indian Bank fixed deposit.

 

  • A time deposit for a fixed period to earn interest with easy liquidity

  • Stable, guaranteed and low-risk returns

  • Attractive interest rates as high as 5.25% for non-senior citizens and 5.75% for senior citizens.

  • Automatic renewal facility for equal period

  • Tenures ranging between 7 days and 10 years

  • Rs. 1000 as minimum deposit amount and no maximum limit

Who Can Invest in Indian Bank Fixed Deposit? - Eligibility Criteria

To be eligible to apply for an Indian Bank FD, the applicant should be:

 

  • Indian Resident

  • Non-Indian Resident

  • Two or more individuals – Joint account

  • Hindu Undivided Family

  • Minors

  • A firm, a company or an association in its name

Documents Required for Opening FD in Indian Bank

Following are the documents required for an Indian Bank fixed deposit.

 

  • KYC of all applicants

  • PAN card
  • Aadhaar card/Voter’s ID/Driving Licence/Passport
  • Latest passport size photograph

Different Types of Indian Bank Tax Saving Schemes

A standard FD in Indian Bank does not provide any tax benefits. However, if you invest in an IB Tax Saver Scheme, then you can get the dual advantage of attractive returns with tax saving. Other features and benefits include:

 

  • A maximum of Rs. 1.5 Lakh can be invested in the FD to save tax

  • Tenor ranging from 5 to up to 10 years for maximum returns

  • Specially designed scheme to avail tax rebate under section 80C of Income Tax Act

  • Additional interest rate of 0.50% for senior citizens

  • Available under FD/MMD schemes.

  • Nomination facility available.

TDS on Indian Bank Fixed Deposit

As per the Income Tax Act of India, the interest earned on a fixed deposit is taxable. Hence, Indian Bank is mandated to deduct tax at source (TDS) at the rate of 10%. This is done if the interest exceeds Rs. 40,000 for the financial year for non-senior citizens. This limit is Rs. 50,000 for senior citizens.

 

Disclaimer: The information regarding Indian Bank FD rates, eligibility criteria, documents required, and other FD related processes are in effect as of 05 Apr 2022, but may be subject to change based on changes in the bank’s policies.

FAQs

  • ✔️Can I withdraw money before the completion of the FD term?

    Indian Bank allows you to conveniently withdraw your amount under its premature FD withdrawal facility. This can be done online or by visiting the bank’s branch. However, you will be charged a penalty fee of 1% of the total amount liable for return.

  • ✔️Can we extend the Indian Bank FD?

    It is easy to extend the investment tenor. Automatic renewal facility for equal period is available for Indian Bank FDs. Else, you can extend your FD online as well as by submitting a physical application that specifies the duration.  

  • ✔️Can I get a loan against my Indian Bank FD?

    By pledging your Indian Bank FD you can get a loan of upto 90%-95% of the maturity amount.  

  • ✔️What is the process of FD amount payment in case of death of the account holder?

    Indian Bank gives you the option to enter a nominee for your FD. In case of the unfortunate death of the primary holder, the nominee (s) get the amount payout after furnishing the relevant documents.

  • ✔️What are the common types of forms for an Indian Bank FD Account?

    When you open an Indian Bank FD, you simply need to submit your details in the account opening form and submit the relevant documents. If you would like to avoid getting TDS deducted then you need to submit form 15G (for non-senior citizens) and 15H (for senior citizens).

  • ✔️What is the Indian Bank tax saving scheme?

    Indian Bank’s Tax Saver Scheme allows you tax benefits of Rs. 1.5 L under the section 80C of the Income Tax Act.  

  • ✔️Is TDS deducted on Indian Bank FD?

    Since the interest earned of FD is taxable, the bank is required to deduct TDS for it. This can be avoided by submitting forms 15 G / H to the bank.

  • ✔️How to claim a TDS refund on a Fixed Deposit online?

    If you need to claim a TDS refund then a corresponding application will need to be filed on the Income Tax website. The application will undergo a verification process before the refund is confirmed.  

  • ✔️What is the time period of the TDS refund?

    Upon successful processing of the refund application, the payout usually happens between 3 to 6 months.

  • ✔️Is there any nomination facility under the Indian Bank FD account?

    Yes, you can add a nominee to your Indian Bank FD. This can be done online or by submitting a physical form to the branch office.

  • ✔️Is there a loan facility under Indian Bank FD Account?

    Yes, you can avail a loan for up to 90% of the amount held in your fixed deposit account.

  • ✔️Is there any credit card facility under the Indian Bank FD scheme?

    Since having a FD makes you an existing customer, you can request for an Indian Bank credit card by simply furnishing your identity proof. You will be required to visit a branch for this.