Indian Bank, a leading public sector bank, is a 107 year old bank that traces its history to the Swadeshi movement. The bank has 19,429 employees and a network of 2,250 Core-Banking Solutions implemented branches across India. It had a total business worth ₹ 2,86,633 Crores in 2013-14 and an operating profit of ₹ 2,901 Crores.
The bank offers an array of banking products and services, including fixed deposits, to cater to every segment of customers.
Indian Bank lets investors get the most out of their savings by offering them fixed income solutions that can help them strike a balance between liquidity and returns. With varying deposit periods and interest rates that are set in accordance to the amount held in a deposit account, investors can optimise their financial plans by opting for FD schemes that suit their financial needs. These instruments can be opted for to create an income stream ideal for those without a regular income source e.g. retirees or to grow savings for the long-term.
Any individual or minor who fulfils Know your Customer requirements can open a fixed deposit account in Indian bank. The bank also accepts deposits from NRIs in terms of NRE and NRO deposits.
Indian Bank offers a range of fixed deposits to cater to all types of depositors. They are Fixed Deposit, Re-investment Plan, Senior Citizen’s scheme, Ind Tax saver, Capital Gains deposits, Facility Deposit, Savings Certificate and Tax Savings certificate.
Minimum deposit accepted under fixed deposits at Indian Bank is ₹ 100.
There is no maximum limit for deposits accepted under fixed deposits at Indian Bank.
However, for deposits of above ₹ 5 crore, acceptance of such deposits will be at the approval of the Treasury Branch.
Indian Bank allows FDs for a minimum of 7 days, where the minimum amount of investment is ₹ 1 lakh. The maximum period allowed is normally 10 years.
Anyone wishing to open a FD can walk into an Indian Bank branch and fill up a form, submit KYC documents and deposit the amount via cash, cheque or demand draft to open an FD.
Indian Bank offers fixed deposits in two sabs—deposits below ₹ 1 crore and above it. Returns vary between 6.75% on short-term deposits to 8.75% on long-term deposits. Rates vary according to the tenure of the deposit which can be between 7 days to 3 years and above.
Interest rates are subject to change which are announced by the bank when rates are revised. New rates do not affect an FD scheme once entered into but are applicable upon renewal or opening a new FD accounts or making fresh deposits.
Indian Bank offers two types of tax saver fixed deposits—Ind Tax Saver and IB Tax Saving Certificate.
Ind Tax Saver is a fixed deposit open to individuals/HUF having PAN Card can invest upto ₹ 1,50,000/- in a financial year. This is a specially designed scheme to avail tax rebate under section 80C of the Income Tax Act. The minimum period of deposit is 5 years and maximum is 10 years.
The latter is a reinvestment plan deposit scheme, locked-in for 5 years and offers the following rates—7.0% for general public, 7.5% for senior citizens and 8.0% for Indian Bank employees. The deposit receipt is issued in 5 denominations (₹ 1000/-, ₹ 5000/-, ₹ 10000/-, ₹ 50000/- and ₹ 1lakh) for categories of general public and senior citizens.
No loans or premature withdrawals are allowed before completion of term under tax saver deposits.
Yes, fixed deposits with Indian Bank are taxable as per the Income Tax Act, 1961. As per current rules, if the total interest on deposits, per depositor, per financial year, per branch is more than ₹ 10,000/- the depositor has to pay tax on the interest.
Indian Bank offers a range of fixed deposits with following features:
Yes, loans are available against fixed deposits at Indian Bank. Facility deposit, a type of term deposit offered by Indian Bank has 90% overdraft facility built in.
Yes, Indian Bank provides an additional interest rate of 0.50% to senior citizens above 60 on most of its fixed deposit schemes up to ₹ 5 crores.
Indian Bank also offers a fixed deposit scheme for senior citizens with additional interest and value additions. The depositors must submit age proof to show they have completed 60 years. The minimum amount accepted under the scheme is ₹ 1,000 and maximum is ₹ 5 crores. It also has features like: