Indian Bank hikes interest rates of fixed deposits

The new rates go into effect on August 24, 2022, according to the bank’s official website.

A rise in interest rates was made by public sector lender Indian Bank for fixed deposits under Rs. 2 crores. The new rates go into effect on August 24, 2022, according to the bank’s official website. The bank boosted interest rates on deposits maturing in 1 to 5 years or more by 5 to 15 bps after the revision.

The bank will continue to offer 2.80% and 3% interest rates on fixed deposits maturing within 7 days and 29 days. Fixed deposits maturing between 46 and 90 days will earn 3.25% interest, and those maturing between 91 and 120 days will earn 3.50% interest. According to Indian Bank, 3.75% interest will be paid on fixed deposits maturing in 121 days to 180 days, and 4% on fixed deposits maturing in 181 days to less than 9 months.

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The interest rate on fixed deposits maturing in 9 months or less than 1 year will remain at 4.40%, while fixed deposits maturing in 1 year will now earn an interest rate of 5.45%, up from 5.30% before, a 15 basis point increase. Indian Bank will now earn 5.50% interest on fixed deposits maturing in more than a year to less than two years, an increase of 10 basis points over the previous rate of 5.40%, and 5.55% interest on fixed deposits maturing in 2 years to less than 3 years, an increase of 5 basis points from earlier. For deposits maturing within the next three years to less than five years, Indian Bank will now offer an interest rate of 5.75%, up from 5.60% previously, while for deposits maturing within five years and above, the bank will now offer an interest rate of 5.65%, up from 5.60% previously.

Indian Bank has mentioned on its website that “The revised interest rates on domestic term deposits are applicable only to fresh deposits and on renewal of maturing deposits.”

Indian Bank has said on its website that “For Domestic Term Deposit for Senior Citizens, an additional rate of interest payable would be 0.50% p.a. for an amount up to ₹10 crores. 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, the additional interest rate would be eligible for the period from 6 months to 120 months (In multiples of 3 months).”

Indian Bank also offers a special fixed deposit scheme named “IB – Golden Ager” for super senior citizens, for which it has specified on its website that “A Special Term Deposit Account for Super Senior Citizen” (Age 80 years and above) is offering additional 0.25% higher rate of interest over & above the additional rate that is presently being offered for normal Senior Citizen on Term Deposit for all deposit buckets.”

On fixed deposits maturing in above 5 Years up to 10 Years, Indian Bank offers a total benefit of 0.75% which is 0.25% additional to the existing premium of 0.50%. For the same Indian Bank has said on its website that “A special offer for Senior Citizens (Aged 60 years & above): An additional 0.25% higher rate of interest over & above the additional rate that is presently being offered for normal Senior Citizen on Term Deposit (0.50+0.25 = 0.75) for deposit bucket “above 5 Years up to 10 Years”.”