Indian Bank - Fixed Deposit Interest Rates

As of August 2026, Indian Bank offers a highest interest rate of 6.65% p.a. for general citizens and 7.15% p.a. for senior citizens on fixed deposits.

Yes, Indian Bank is a registered bank regulated by the RBI. Your deposits (up to ₹5 Lakhs per depositor) are insured by DICGC, which covers both principal and accrued interest.

The minimum tenure for a fixed deposit with Indian Bank starts from 7 Days. Longer tenures may offer higher interest rates.

Yes, Indian Bank offers an additional benefit of up to 0.75% p.a. over the general citizen rate for senior citizens (aged 60 and above).

Yes, interest earned on fixed deposits is taxable as per your income tax slab. TDS is deducted at 10% if total interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

Indian Bank charges a 1% penalty, deducted from the interest rate applicable for the period the deposit actually ran. No interest is paid if the FD is closed within 7 days. The penalty is waived for staff, ex-staff and ex-staff senior citizens, and may be waived on reinvestment into a longer tenure.

As of August 2026, Indian Bank offers special FD rates for 300 days at 6.2% (6.7% for Seniors), 555 days at 6.65% (7.15% for Seniors), and 777 days at 6.6% (7.1% for Seniors).