Indian Bank is state-owned public-sector banking and financial services company established in the year 1907. Headquartered in Chennai, India, the Bank has 2537 branches across the country. Indian Bank offers a host of banking products and services which include loans, deposits, credit cards, etc.
Fixed deposits (FD) are term deposits which can be opened with a one-time investment for a certain period of time. Interest can be earned on the deposits at the interest rate offered by the Bank. The FD schemes offer attractive interest rates, which lets you earn great returns on your deposited money.
Indian Bank offers an attractive rate of return on fixed deposit. This interest rate for deposits changes according to the standard rates set by Reserve Bank of India. Those looking to invest in fixed deposits should keep a close watch on the fixed deposit rates in order to earn a good rate of return on fixed deposit.
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Indian Bank lets you enjoy great interest rates on the different fixed deposit interest rates schemes offered. Indian Bank Fixed Deposit has the following Key Features:
- You can open a fixed deposit with a minimum investment of Rs.100/-
- There is no maximum limit of investment
- Minimum and maximum investment period is 7 Days and 10 years respectively
- Automatic renewal facility available for the same period
- Loan, nomination, and pre-closure facilities are available
- Rate of interest is computed quarterly
- Senior citizens get an extra 0.5% interest across all schemes.
Fixed Deposit accounts can be opened by one individual in his own name or by more than one individual jointly. The applicant will need to fill out the complete fixed deposit application form and submit it along with the KYC and other documents required by the Bank.
Interest Rates (in %)
|Regular Citizens||Senior Citizens|
|7 days to 14 days||4.00||4.50|
|15 days to 29 days||4.00||4.50|
|30 days to 45 days||4.50||5.00|
|46 days to 90 days||4.50||5.00|
|91 days to 120 days||5.25||5.75|
|121 days to 180 days||5.25||5.75|
|181 days to < 9 months||5.75||6.25|
|9 months to < 1 year||6.25||6.75|
|More than 1 year to < 2 years||6.25||6.75|
|2 years to < 3 years||6.25||6.75|
|3 years and above||6.00||6.50|
Note: The above interest rates are for investment between Rs 1 lakh and Rs 1 crore. An additional 1.00% p.a. interest rate is offered to Indian Bank staff members and eligible ex-staff members. Ex-staff cum senior citizens would get the additional interest rate of 1.50% p.a.
- Invested amount:
The amount deposited to open an FD is the invested amount. Only a one-time investment can be made in an FD. The minimum deposit for Indian Bank FD is Rs. 100/-, but there is no maximum limit.
- Investment Tenure:
It is the time-period for which you make the investment. Indian Bank FD tenure ranges between 7 days to 10 years.
- Interest rate offered:
The interest rate or the fixed deposit rates are the rate at which the Bank gives you interest on the FD amount. The interest rate is fixed for the entire FD tenure.
Fixed deposit rates can be altered by a number of factors which relate to the economy of the country. The interest rate can be affected by the following factors:
The economy of the country decides the interest rate of a number of financial products. The FD interest rate is also affected by the prevailing economic conditions of the country. When there is a high demand for money in the country, Banks give lucrative interest rates on FD to draw more cash in their stocks in order to meet the rising cash demand.
Inflation or price hike can be damaging for the economy of the country as it can lead to devaluation of the rupee and reduction of purchasing power over lent amount. In order to make up for the loss in interest of lent money, banks offer attractive fixed deposit rates.
During a recession or economic slowdown, more money has to be released in the market. This money supply is done by reducing the interest rate on the cash stock in the banks. Thus, the rate of return on fixed deposit goes down.
- Reserve Bank of India (RBI)
RBI is the authority that builds the monetary policy of India with respect to the economic conditions prevailing in the country. To ensure that there is proper flow of funds in the market, RBI exercises control on the interest rates of different financial products. When RBI releases to cash in the market, interest rates do down leading to higher inflation. However, when RBI lowers the money supply, the interest rates surge which leads to inflation getting controlled.