This PSU Bank Hikes FD Rates By 80 Bps; Offering Special Term Deposits For Limited Time Period

Indian Bank surprised investors by raising the interest rate on fixed deposit accounts with balances less than Rs 2 Cr. This decision attracted investors at a time when the country is closely monitoring the results of the exit poll. The interest rate revision for retail domestic and NRO term deposits will take effect on June 3, 2024. Following the revision, the bank has hiked interest rates by 80 bps from 6.30% to 7.10% on above 1 year to less than 2 years tenure.

Indian Bank FD Rates

On fixed deposits maturing in 7 days to 29 days, the bank will continue to offer an interest rate of 2.80% and on those maturing in 30 days to 45 days, Indian Bank will continue to offer an interest rate of 3.00%. Indian Bank will continue to offer an interest rate of 3.25% on a deposit tenure of 46 days to 90 days and 3.50% on 91 days to 120 days tenure. Deposits maturing in 121 days to 180 days will continue to fetch an interest rate of 3.85% and those maturing in 181 days to less than 9 months will continue to fetch an interest rate of 4.50%.

On FDs maturing in 9 months to less than 1 year, the bank will offer an interest rate of 4.75% and on those maturing in 300 Days, Indian Bank will pay an interest rate of 7.05% for a limited time period ranging from 03.05.24 -30.06.24. Indian Bank will continue to offer an interest rate of 6.10% on a deposit tenure of 1 year but has hiked the interest rate by 80 bps from 6.30% to 7.10% on tenure of above 1 year to less than 2 years.

Deposits maturing in 2 years to less than 3 years will still fetch an interest rate of 6.70% and those maturing in 3 years to 5 years will fetch an interest rate of 6.25%. Fixed deposits of Indian Bank maturing above 5 years will continue to fetch an interest rate of 6.10%.

On the special retail term deposit product "IND SUPER 400 DAYS", the bank is offering an interest rate of 7.25% to the general public, 7.75% to senior citizens and 8% to super senior citizens for the period expiring on 30.06.2024.
On the special retail term deposit product "IND SUPREME 300 DAYS", Indian Bank is currently promising an interest rate of 7.05% for the general public, 7.55% for senior citizens and 7.80% for super senior citizens until 30th June 2024.

With effect from June 3, 2024, Indian Bank has also increased its marginal cost of funds-based lending rate, or MCLR, by 5 basis points for all tenures with the exception of overnight and one-month terms.