India’s state-owned bank raised interest rates on fixed deposits, effective August 4. The latest rates will be applicable on fixed deposits below Rs 2 crore. The move comes after several other lenders also hiked interest rates on deposits as well as loans, amid the RBI’s tight monetary policy. Also on Friday, the RBI’s MPC raised the key repo rate by 50 basis points to 5.4%, the highest since 2019.
Indian Bank has raised the interest rate on term deposits for a single term — 1 year. The rates on the remaining mandates remain the same.
Indian Bank FD Interest Rate (on deposits below Rs 2 Crore):
7 days to 14 days – For the General Public: 2.80%; For seniors: 3.30%
15 days to 29 days – For the General Public: 2.80%; For seniors: 3.30%
30 days to 45 days – For the general public: 3.00%; For seniors: 3.50%
46 days to 90 days – For the general public: 3.25%; For seniors: 3.75%
91 days to 120 days – For the general public: 3.50%; For seniors: 4.00%
121 days to 180 days – For the general public: 3.75%; For seniors: 4.25%
181 days to less than 9 months – For the General Public: 4.00%; For seniors: 4.50%
9 months to less than 1 year – General Public: 4.40%; For seniors: 4.90%
1 year – General Public: 5.30%; For seniors: 5.80%
From more than 1 year to less than 2 years – General Public: 5.40%; For seniors: 5.90%
2 years to less than 3 years – General Public: 5.50%; For seniors: 6.00%
3 years to less than 5 years – General Public: 5.60%; For seniors: 6.10%
5 years – General Public: 5.60%; For seniors: 6.10%
More than 5 years – For the general public: 5.60%; For seniors: 6.10%.
According to the bank’s website, for the national term deposit for the elderly, the additional interest rate to be paid would be 0.50% per annum for an amount up to ₹10 crore. The additional rate would be offered on deposits 15 days to 10 years 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). The above cap is applicable to all types of deposits at term registered in the name of the Senior as the main account holder in one or more branches combined However, no single deposit can be opened in one day for more than Rs 2 crore within the aggregate limit of Rs 10 crore labeled at a single CIF,” he added.
He also said senior citizens’ deposits opened under the 1988 Type B Capital Gains (Term Deposits) Scheme are not eligible for the benefit. Similarly, in the case of term deposits in the name of a HUF, the Karta of the HUF is not eligible for a higher interest rate, even if he is a senior, because the beneficial owner of the deposit is the HUF and not the individual Karta.
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