Interest Rates
5.75% – 5.50%
Time Period
3 months – 10 years
Min - Max Amount
1,000 - No limit
Compounding
Quarterly
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Invested Amount
₹ 10,000
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Indian Bank, established on March 5, 1907, began its journey with an authorised capital of ₹20 lakh and started operations on August 15 the same year. Symbolised by the banyan tree, the bank has always stood for widespread growth and prosperity. Over the years, it has expanded significantly and, as of March 31, 2025, boasts a global business of ₹13.25 lakh crore.
The bank operates 5,901 domestic branches, including three digital banking units (DBUs), along with three overseas branches and one IBU. As of March 2025, Indian Bank’s total deposits have grown 7% year-on-year to ₹7.37 lakh crore, with a healthy CASA ratio of 40.17%. The bank continues to focus on digital transformation, customer service, and quality credit growth to maintain its strong performance.
Indian Bank offers a range of fixed deposit (FD) schemes, suitable for customers looking to earn secure returns. The interest rates on FDs are generally higher than regular savings accounts. A fixed minimum deposit is required to open an FD, and once initiated, additional deposits into the same account are not permitted.
Tenure | Regular Rate (% p.a.) | Senior Citizen Rate (% p.a.) |
7 days to 14 days | 5.00 | 5.50 |
15 days to 29 days | 5.00 | 5.50 |
30 days to 45 days | 5.25 | 5.75 |
46 days to 90 days | 5.35 | 5.85 |
91 days to 120 days | 5.75 | 6.25 |
121 days to 180 days | 5.75 | 6.25 |
181 days to less than 9 months | 6.00 | 6.50 |
9 months to less than 1 year | 6.10 | 6.60 |
1 year | 6.50 | 7.00 |
Above 1 year to less than 2 years | 6.00 | 6.50 |
2 years to less than 3 years | 5.50 | 6.00 |
3 years to less than 5 years | 5.50 | 6.00 |
5 years | 5.50 | 6.00 |
Above 5 years | 5.50 | 6.00 |
Note: The data is as of July 18, 2025
These FDs range between 7 days to less than a year, offering interest rates from 5.00% to 6.10% for regular customers and 5.50% to 6.60% for senior citizens. This type of FD can be suitable for short-term savings and quick liquidity.
These FDs range from 1 year to less than 5 years, with an interest rate of 6.50% for regular customers and 7.10% for senior citizens. This can be a suitable option for planned expenses over the medium term.
These FDs range from 5 years to 10 years, offering 5.50% for regular customers and up to 6.00% for senior citizens. This can be suitable for long-term wealth creation with stable and assured returns.
| Tenure | Institution Name | Interest Rate (% p.a.) |
|---|---|---|
| 1 year | 6.50› |
 | 1 year / 3 years | 6.50› |
 | 1 year | 6.50› |
 | 366 days | 6.70› |
 | 2 yr to less than 3 years | 6.70› |
Note: The data is as of July 22, 2025
Note: The specific requirements might vary slightly depending on the type of FD account (e.g., for individuals, HUFs, or firms) and whether you are an existing or new customer of the bank. If you're an existing customer, the process is often simpler.
Only investments in Indian Bank’s Tax Saving Fixed Deposit qualify for tax benefits under Section 80C of the Income Tax Act, allowing deductions of up to ₹1.5 lakh per financial year. Other types of Indian Bank FDs do not offer tax-saving benefits.
The interest earned from any Indian Bank FD is fully taxable and is added to the investor’s total income. Tax Deducted at Source (TDS) is applicable at 10% if the annual interest exceeds ₹40,000. For senior citizens, this threshold is ₹50,000 per year. If the investor does not provide a valid PAN card, the TDS rate increases to 20%.
Indian Bank allows premature withdrawal of most fixed deposits, except for tax-saving FDs. For deposits below ₹5 lakhs, no penalty is charged if the funds are held for at least 181 days. However, if such deposits are withdrawn before 181 days, interest will be paid at the applicable rate for the actual period, and no interest is credited if closed before 7 days.
For deposits above ₹5 lakhs, a 1% penalty is levied if the withdrawal is made before 181 days. In this case, the applicable interest will be the card rate for the actual tenure minus the 1% penalty. Deposits closed after 181 days are not subject to this penalty.
Certain categories are exempt from foreclosure charges. These include deposits held by staff, ex-staff, senior citizens, and domestic term deposits placed by corporates, government bodies, and registered institutions with no profit motive, provided they invest as per bank quotations.
