Diwali Gift: This Chennai-Based PSU Bank Extends Special FD Rates Scheme Till December 31, Offers 8% Returns

This Diwali, a public sector bank headquartered in Chennai, Indian Bank has extended special fixed deposits (FD) schemes till December 31, 2023, from earlier October 31. There are two special FD schemes offered by this PSU with a rate of returns as high as 8%. Senior citizens are the biggest beneficiaries.

Here's what depositors need to know about Indian Bank's special FD rates.

The special FDs are below Rs 2 crore deposits.

1. IND SUPER 400 DAYS:

Indian Bank said, the special retail term deposit product "IND SUPER 400 DAYS", offers a higher rate of interest for investment starting from Rs 10,000 to less than Rs 2 Crore for 400 days in the form of FD/MMD with callable options.

Under this scheme, individuals in the general category will earn a 7.25% interest rate on FDs below Rs 2 crore. While senior citizens will get more than 0.50% returns than the general category, at a staggering 7.75%.

But that is not all, Indian Bank has a category for super senior citizens where it is offering 0.25% higher returns than senior citizens and 0.75% higher rate than the general category, to a whopping 8% per annum.

The tenure is 400 days here.

2. IND SUPREME 300 DAYS:

"Special Retail Term Deposit Product "IND SUPREME 300 DAYS" offering an attractive rate of interest for investment starting from Rs.5000 to less than 2 Crore for 300 days in the form of FD/MMD with callable options," the bank's website said.

Accordingly, Indian Bank offers a 7.05% rate to the general public for a 300-day tenure. The rate is higher by 0.50% as well to senior citizens who will earn 7.55%. Furthermore, super senior citizens will earn a 7.80% rate of returns, higher by 0.25% from the rate offered to senior citizens, and up by 0.75% from the general public.

The senior citizens' age category is 60 years and above, while the super senior citizens belong to the age group of 80 years old and above.

The interest rates on NRE term deposits are subject to compliance with all the extant exclusive/specific RBI Guidelines on NRE accounts relating to minimum/maximum term of deposits, category of customer etc.

Apart from this, the Indian Bank said, that for Domestic Term Deposit for Senior Citizens, the additional rate of interest payable would be 0.50% p.a. for amounts up to ₹10 crore. The additional rate would be offered on deposits of 15 days to 10 years over the card rate in respect of Short Term Deposits, Fixed Deposits and Money Multiplier Deposit Schemes. Similarly, for Recurring Deposit accounts, an additional interest rate would be eligible for the period from 6 months to 120 months (In multiples of 3 months). The above ceiling applies to all types of term deposits standing in the name of the Senior Citizen as the principal account holder at one or more branches put together. However, no single deposit be opened in a day for more than ₹2 Cr within the overall limit of ₹10 Cr tagged to a single CIF.

However, it added, that deposits of Senior Citizens opened under Capital Gains Scheme Type B (Term Deposits) 1988 Scheme are not eligible for this benefit. Similarly, in the case of term deposits standing in the name of a HUF, the Karta of the HUF is not eligible for the higher rate of interest, even if he is a senior citizen, as the beneficial owner of the deposit is the HUF and not the Karta in his individual capacity.