Indian Bank hikes interest rates on fixed deposits: Details inside

Indian Bank, a public sector lender, increased interest rates on fixed deposits below ₹2 crore. The bank's website states that the revised rates are effective as of 04.08.2022. The bank increased interest rates on fixed deposits with one-year maturity after the revision. The bank currently offers interest rates on deposits with maturities ranging from 7 days to 5 years and over that range from 2.80 per cent to 5.60 per cent for the general public and 3.30 per cent to 6.10 per cent for senior citizens.

Indian Bank FD Rates

On deposits maturing in 7 days to 29 days, the bank will continue to offer an interest rate of 2.80% and on fixed deposits maturing in 30 days to 45 days the bank will continue to offer an interest rate of 3%. Indian Bank will now offer an interest rate of 3.25% on fixed deposits maturing in 46 days to 90 days and the bank will continue to offer an interest rate of 3.50% on term deposits maturing in 91 days to 120 days. Fixed deposits maturing in 121 days to 180 days will continue to offer an interest rate of 3.75% and term deposits maturing from 181 days to less than 9 months will continue to offer an interest rate of 4.00%. The bank will continue to give an interest rate of 4.40 per cent on deposits maturing in 9 months to less than 1 year, and it has increased its interest rate from 5.25 per cent to 5.30 per cent on deposits maturing in 1 year by 5 basis points. Deposits of more than one year and less than two years will continue to give a 5.40 per cent interest rate, while deposits of two years and less than three years will continue to offer a 5.50 per cent interest rate. On deposits maturing in 3 to over 5 years, Indian Bank will continue to give an interest rate of 5.60 per cent.

Indian Bank has mentioned on its website that “Additional rate of interest payable would be 0.50% p.a. for amount up to 10 crore for all tenors over the card rate in respect of Short Term Deposits, Fixed Deposits and Money Multiplier Deposit Schemes. Similarly, for Recurring Deposit accounts, additional interest rate would be eligible for the period from 6 months to 120 months (In multiples of 3 months).”

According to Indian Bank, the current interest rates also apply to NRE term deposits, the Tax Saver Scheme, and the Capital Gains Scheme Type B (Term Deposits) 1988 Scheme.

To combat inflation, the Reserve Bank of India (RBI) today increased the repo rate by 50 basis points to 5.40 per cent. Following the RBI's increase in key interest rates, banks may increase interest rates on retail loans including personal loans, home loans, auto loans, etc., as well as interest rates on fixed deposits.