Indian Bank, a public sector lender, has raised interest rates on domestic term deposits of less than ₹2 crore. The bank announced the change on June 1, 2022, and following the revision, the bank raised interest rates over various tenors, promising 2.80% to 5.35% on 7-day deposits to 5 years and over.
Indian Banks FD Rates
The bank will continue to pay an interest rate of 2.80% on deposits held for 7-29 days, while the interest rate on deposits held for 30-45 days has been raised to 2.80% to 3.00%, an increase of 20 basis points. . The bank will continue to offer an interest rate of 3.25% on term deposits with a maturity of 46 to 90 days, while the interest rate on term deposits with a maturity of 91 to 120 days was raised from 3.35% to 3.50 percent, an increase of 15 basis points. On term deposits of 121 days to 180 days, Indian Bank will now offer an interest rate of 3.75%, down from 3.50% previously, an increase of 25 basis points.
The bank will continue to offer interest rates of 4.00% and 4.40% on deposits with maturities between 181 days and less than 9 months and between 9 months and less than one year. The interest rate on one-year term deposits was raised from 5.00 percent to 5.10 percent, an increase of 10 basis points; on deposits over one year but less than two years, the interest rate was raised from 5.05 per cent to 5.20 per cent, an increase of 15 basis points; and on term deposits of two years but less than three years, the interest rate was raised from 5.10 percent to 5.25 percent, an increase of 15 basis points.
The interest rate on deposits of 3 years to less than 5 years was raised from 5.20% to 5.35%, an increase of 15 basis points; on 5-year deposits, the interest rate rose from 5.25% to 5.35%, an increase of 10 basis points; and on deposits over 5 years, the interest rate was raised from 5.15 percent to 5.35 percent, an increase of 20 basis points.
For the benefit of the elderly, Indian Bank has mentioned on its website that “the additional rate of interest payable would be 0.50% per annum for an amount up to ₹ 10 crore for all tenors above the card rate for short term deposits, fixed deposits and money multiplier deposit systems. Similarly, for recurring deposit accounts, an additional interest rate would be eligible for the period of 6 months to 120 months (in multiples of 3 months).”