How to Open Fixed Deposit in Indian Bank
Like any other bank, Indian Bank offers deposits and loans to its retail and commercial customers. Among the other deposit accounts, the bank also offers four different fixed deposit (FD) or time deposit schemes to its retail customers. Each of the schemes has its unique features and covers the needs of all types of customers.
The bank provides tax-saving schemes, such as the five-year FD and capital gains, for the customers to claim tax benefits on their savings and gains. There are other schemes that allow the account holder to decide on the tenure of the account and other details based on their convenience.
Know more about how these schemes work and pick the right scheme for you.
Latest Update
RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.
Fixed Deposit Interest Rates 2021 of Indian Bank
The interest rates provided in the table below is applicable to deposits less than Rs.2 crore and are effective from 5 February 2021.
| Deposit Tenure | Interest Rates for General Customers (% p.a.)* | Interest Rates for Senior Citizens (% p.a.)* |
| 7 days to 14 days | 2.90 | 3.40 |
| 15 days to 29 days | 2.90 | 3.40 |
| 30 days to 45 days | 2.90 | 3.40 |
| 46 days to 90 days | 3.25 | 3.75 |
| 91 days to 120 days | 3.95 | 4.45 |
| 121 days to 180 days | 3.95 | 4.45 |
| 181 days to 269 days | 4.40 | 4.90 |
| 9 months to 364 days | 4.40 | 4.90 |
| 1 year | 5.00 | 5.50 |
| 1 year 1 day to 1 year 364 days | 5.10 | 5.50 |
| 2 years to 2 years 364 days | 5.10 | 5.60 |
| 3 years to 5 years | 5.25 | 5.75 |
| 5 years | 5.25 | 5.75 |
| Above 5 years | 5.15 | 5.65 |
Interest rates are subject to change from time to time.
Different Types of Indian Bank FD Schemes
Fixed Deposit
The scheme allows you to deposit a lump sum for a fixed period and earn interest on the deposit with an easy liquidity option. The interest will be paid out on quarterly intervals or in monthly intervals at a discounted rate. The minimum deposit is Rs.1,000 with no upper limit. The minimum tenure is seven days, and the maximum is 10 years.
Money Multiplier Deposit
The scheme requires you to make a minimum deposit of Rs.1,000 and multiples of Rs.100 thereafter. There is no upper limit on the deposit amount. The deposit must be held with the bank for a tenure of 6 months up to 10 years. The interest gets compounded quarterly.
Short Term Deposit
The scheme allows depositors to place their money for a short period and earn a fixed interest income. The interest will be paid on maturity along with the principal deposit. The tenure can range from 7 days up to 180 days.
The minimum deposit is Rs.1,000 but no maximum limit. Senior citizens get an additional interest rate of 0.5% for deposits of up to Rs.10 crore, bank staff get 1.00% for deposits up to Rs.2 crore, and bank ex-staff who are senior citizens get 1.50% on deposits of up to Rs.10 crore.
Motor Accident Claim Tribunal Deposit (MACAD)
The scheme offers two products as suggested by the court; namely, Motor Accident Claims Annuity Deposit (MACAD) and Principal Equally Distributed (PED).
The former comes with the facility of Equated Monthly Instalments (EMI), and the latter offers monthly interest payouts. Further, MACT SB is created for crediting the monthly annuity from MACAD.
The deposit amount depends on the relevant tenure and a minimum monthly annuity of Rs.1,000. The tenure can range from 3 years up to 18 years as directed by the tribunal or court.
Indian Bank FD Special Features and Benefits
- The minimum tenure is seven days, and the maximum is 10 years.
- The minimum deposit amount is Rs.1,000.
- Senior citizens can get an additional 0.5% interest above the regular rates.
- Quarterly and monthly interest payout options are available.
- Loan and nomination facilities are available.
- Auto-renewal facilities are available.
Basic Eligibility Criteria for Indian Bank FD
- Resident individuals – Single account
- Two or more individuals – Joint account
- Minors
- Hindu Undivided Families (HUFs)
- Non-resident Indians (NRE account holders)
- A firm, a company or an association in its name
Tax Benefits on Indian Bank Fixed Deposit
IB Tax Saver Scheme
Depositing a minimum amount of Rs.1,000 up to Rs.1.5 lakh can provide income tax deductions under Section 80C of the Income Tax Act, 1961. You can choose for interest payout on a monthly or quarterly basis.
You can also opt for the accrued interest to be paid out on maturity. The minimum tenure to get the income tax benefits is five years. The maximum tenure is 10 years. Individuals and HUFs having a PAN card can open this account.
Capital Gains
This scheme allows taxpayers to claim tax exemption from capital gains if the amount of capital gains or the net consideration is deposited in this account on or before the due date of filing income tax returns as specified under Section 54 (B, D, F and G) of the Income Tax Act, 1961.
The account is offered both in the form of a savings account and as a term deposit. The minimum deposit is Rs.1,000, and the minimum tenure is seven days and can go up to three years.
FD Interest Rate Calculator
Our FD calculator page gives you a way to predict the returns you may receive upon putting your money in a fixed deposit account.
Frequently Asked Questions (FAQs)
Is the Capital Gains scheme available in all branches of the bank?
The Capital Gains scheme is available under all branches of the bank except for the rural branches.
Does all the FD schemes offer an additional interest rate for senior citizens and bank staff?
No. Not all the FD schemes of the bank offer an additional interest rate for senior citizens and bank staff. For example, the Capital Gains scheme does not offer an additional interest rate, whereas, the fixed deposit scheme and IB Tax Saver scheme offers the additional interest rate.
The additional interest rate is subject to an aggregate amount of up to Rs.10 crore. Please confirm this matter with the bank representative before opening the account.
Can I make a premature withdrawal on my IB Tax Saver account?
No. The bank does not allow premature withdrawal or advance facility on the IB Tax Saver Scheme since the money is to be kept with the bank for a fixed term of five years to get the income tax benefits.
Are rollover or premature closure facilities available under the MACAD scheme?
The rollover and premature closure facilities are available only upon the tribunal or court's directions. The beneficiary of the account is not authorised to take a call on the same.
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How to Open Fixed Deposit in Indian Bank
Source: https://cleartax.in/s/indian-bank-fd-interest-rates
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