Indian Bank increases FD rates by 80 bps for deposits under Rs 2 crore

Indian Bank, a leading public sector bank in India, has increased its fixed deposit (FD) interest rates by 80 basis points (bps) for deposits below Rs 2 crore, effective June 3, 2024. This adjustment is in response to changing market conditions and aims to provide better returns for depositors, especially in an inflationary environment.

While most tenures have maintained their existing rates, the rate for deposits above 1 year to less than 2 years has been increased from 6.30% to 7.10%. Rates for other tenures remain steady, ranging from 2.80% for the shortest terms to 7.25% for the special 400-day Ind Super FD.

The last date to invest in Indian Bank's special fixed deposits (FDs) has been extended to June 30, 2024, from the previously set deadline of May 3, 2024. The "IND SUPER 400 DAYS" FD offers a higher interest rate for investments ranging from Rs 10,000 to less than Rs 2 crore for a tenure of 400 days, with callable options. This product provides interest rates of 7.25% for the general public, 7.75% for senior citizens, and 8.00% for super senior citizens.

Additionally, the "IND SUPREME 300 DAYS" FD offers an attractive interest rate for investments starting from Rs 5,000 to less than Rs 2 crore for a tenure of 300 days, also with callable options. The interest rates for this product are 7.05% for the general public, 7.55% for senior citizens, and 7.80% for super senior citizens. Senior citizens receive an extra 0.50% interest on deposits up to Rs 10 crore, while super senior citizens (aged 80 and above) enjoy an additional 0.25% over the rate for regular senior citizens across all deposit tenures.

This adjustment not only offers better returns to customers but also strengthens the bank's competitive position in the market. As interest rates play a pivotal role in financial planning, both the bank and its customers stand to benefit from this well-calibrated move.