Indian Bank FD Rates Hiked From October 23: Check New Interest Rates For 555-Day And 777-Day Special Deposits

Indian Bank has revised interest rates on two of its special fixed deposit schemes, offering depositors higher returns on select investment tenures from October 23. The public sector lender has increased rates by 0.15 percentage point on both deposits, giving customers a slightly better return on money invested for the specified periods.

Indian Bank Hikes FD Interest Rates By 15 Basis Points From October 23

Under the revised rates, the 555-day 'Ind Grow' special deposit will offer an interest rate of 6.80%, compared with 6.65% earlier. Meanwhile, the rate on the 777-day 'Ind Prosper' deposit has been raised to 6.75% from 6.60%.

The revision is limited to these two special deposit schemes and does not indicate a uniform increase across all Indian Bank fixed deposit tenures. Customers considering a new deposit should check the applicable rate for their chosen period before investing.

The bank has increased the interest rate on both special deposits by 15 basis points. One basis point is equal to 0.01 percentage point, making the latest revision an increase of 0.15 percentage point in each case.

New Indian Bank FD Rates: 6.80% On 555-Day Deposit, 6.75% On 777-Day FD

For customers choosing the 555-day Ind Grow scheme, the revised 6.80% rate is intended to provide a higher return than the earlier 6.65%. Depositors opting for the longer 777-day Ind Prosper scheme will now receive 6.75%, up from 6.60%, subject to the scheme's applicable terms and conditions.

The additional interest earned will depend on the amount deposited, the investment period and the payout option selected. The final maturity amount may also vary depending on the bank's compounding and premature-withdrawal rules.

FD Rate Revision Impact on Depositors

Even a small increase in fixed deposit rates can make a difference to savers who prefer predictable returns and want to keep their money invested for a defined period. However, the benefit should be assessed alongside the investment tenure, access to funds and returns available from other deposit options.

The change also comes amid shifts in the interest-rate environment. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50% during its October monetary policy review, according to the information provided. The policy rate influences borrowing and lending conditions, although banks do not necessarily change deposit rates by the same amount or at the same time.

For Indian Bank customers, the immediate takeaway is that the revised rates apply to the 555-day Ind Grow and 777-day Ind Prosper schemes from October 23. Depositors should compare the latest rates and scheme conditions before deciding which tenure best suits their financial needs.

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