Public sector lender Indian Bank has revised interest rates upwards on select fixed deposit (FD) tenures, offering higher returns for retail investors seeking stable investment options. The state-owned bank has increased the interest rates on two of its special fixed deposit offerings: the 555-day tenure scheme and the 777-day tenure scheme. Rates on these specific tenures have been raised by 0.15 percentage points, equivalent to 15 basis points. According to the bank, the updated interest rates have officially come into effect from 23 October 2026. All other fixed deposit tenures offered by the bank remain unchanged at their previous interest rate levels.
Revised Interest Rates for 555-Day and 777-Day Special FDs
The interest rate hike applies specifically to Indian Bank's special fixed deposit products named Ind Grow and Ind Prosper. Under the Ind Grow scheme, which carries a maturity period of 555 days, regular depositors will now earn an interest rate of 6.80% per annum, up from the earlier rate of 6.65%. Meanwhile, the Ind Prosper scheme, featuring a maturity period of 777 days, will now yield 6.75% per annum for general customers, compared to the previous payout of 6.60% per annum.
These revised interest rates are applicable on an annual basis for general retail depositors. Investors are advised to verify the latest eligibility criteria, operational guidelines, and terms directly with the bank prior to committing their capital to these fixed-income schemes.
Enhanced Benefits for Senior and Super Senior Citizens
Indian Bank continues to offer preferential interest rates to senior citizens and super senior citizens across its deposit schemes. Senior citizens aged 60 and above receive an additional interest rate benefit of 0.50% (50 basis points) over the standard rates applicable to general depositors. Super senior citizens, defined as individuals aged 80 years and above, are eligible for an extra 0.75% (75 basis points) interest margin over general rates.
Following this rate revision, senior citizens investing in the 555-day Ind Grow FD scheme will receive an annual interest rate of 7.30%, while super senior citizens will earn 7.55% per annum. For the 777-day Ind Prosper FD scheme, the interest rate stands at 7.25% per annum for senior citizens and 7.50% per annum for super senior citizens. This makes these special deposit tenures an attractive tool for elderly investors looking to maximize their interest income.
Key Considerations Before Investing in Fixed Deposits
Before allocating funds to any fixed deposit scheme, investors must evaluate their liquidity requirements and investment time horizon. It is crucial to review the rules regarding premature withdrawal in case funds are required before the stipulated maturity date. Withdrawing funds early may attract premature penalty charges or result in a re-calculation of the applicable interest rate by the bank.
Furthermore, the interest earned on fixed deposits is fully taxable according to the investor's applicable income tax slab. If the total interest income generated across deposits exceeds the prescribed threshold limit set by tax authorities, the bank will deduct Tax Deducted at Source (TDS). Prospective investors should consult a certified financial advisor to align their investment choices with their broader financial goals.
