Home / Money / Personal Finance /  This 114-year-old public sector bank hikes interest rates on fixed deposits

Founded on March 5, 1907, Indian Bank is a major nationalised bank whose global business has surpassed 10 lakh Cr in 2022. With 114 years of existence, the bank now has 5732 domestic branches and 3 overseas branches. The bank recently increased interest rates on fixed deposits below 2 crore, and the new interest rates are in force from 4th July 2022. The bank is now providing an interest rate of 2.80 per cent to 5.60 per cent on deposits that mature in 7 days to 10 years. 

Indian Bank FD Rates

The bank will continue to provide a 2.80% interest rate on fixed deposits with maturities between 7 and 29 days, and a 3.00% interest rate on term deposits with maturities between 30 and 45 days. On deposits maturing in 46 days to 90 days, Indian Bank will continue to offer a 3.25 per cent interest rate, and on deposits maturing in 91 days to 120 days, a 3.50 per cent interest rate. The interest rate on fixed deposits maturing from 121 days to 180 days will continue at 3.75 per cent, while the interest rate on term deposits maturing from 181 days to less than 9 months will remain constant at 4.00 per cent.

The bank has maintained its 4.40 per cent interest rate on fixed deposits maturing in 9 months to less than 1 year, however Indian Bank has increased its interest rate from 5.10 per cent to 5.25 per cent on deposits maturing in 1 year. While the bank increased the interest rate on deposits with a maturity period of more than one year but less than two years by 20 basis points, to 5.40 per cent which was 5.20% earlier. The bank increased the interest rate on term deposits maturing in 2 years to less than 3 years by 25 basis points, from 5.25 per cent to 5.50 per cent.

Term deposits maturing in 3 to 5 years will now earn an interest rate of 5.60 per cent, up from 5.35 per cent previously, a 25 basis point increase. Indian Bank increased the interest rate on long-term deposits of more than five years by 25 basis points, from 5.35 per cent to 5.60 per cent. Indian Bank has said on its website regarding Senior Citizen Domestic Term Deposit Accounts 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)."

Indian Bank FD Rates 2022
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Indian Bank FD Rates 2022 (indianbank.in)

Meanwhile, Bandhan Bank has increased interest rates on fixed deposits of less than 2 crore as well as savings accounts. The bank announced an interest rate hike on numerous tenors on July 4, 2022. The bank currently gives savings account holders an interest rate of up to 6.25 per cent. Whereas on fixed deposits, an interest rate of 3.00% - 5.60% to the general public and 3.75% - 6.35% to senior citizens is now promised by the bank following the revision.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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