What is the Minimum or Maximum Interest Rate Indian Bank Offers on FD?
As of early 2026, the Indian Bank fixed deposit interest rate is kept in a set range.
- FD interest starts from 2.80% per year
- and can go up to 7.20% per year, based on the deposit period.
These rates are for Indian Bank domestic fixed deposits below ₹3 crore. The interest amount depends on how long the money is kept in the FD. For senior citizens, some extra interest is given. Generally, a longer-term FD gives better interest than a short-term FD.
Very short-term FDs, like 7 days to 29 days, get the lowest interest, because money is kept only for a few days.
The highest interest rate is given only to super senior citizens, meaning those 80 years and above. This rate is available under special FD schemes like IND Secure of 444 days, where the amount is kept locked for a fixed time.
Interest rates are different because the bank decides the rate based on the FD period, bank fund requirement, RBI instructions, repo rates, and customer type, such as normal, senior citizen, or super senior citizen.
RBI Repo Rate Change and FD Rate Impact in 2026
FD interest rates do not change suddenly or without reason. Banks mainly follow the RBI repo rate movement.
In December 2025, the Reserve Bank of India reduced the repo rate by 25 basis points, and it came down to 5.25%. This showed that inflation was under control. Because of this, banks did not feel the need to give very high interest to collect deposits.
When the repo rate comes down:
- Banks borrow more cheaply from the RBI
- Cost of funds reduces
- Banks slowly cut FD rates, especially for medium and long tenures
Indian Bank followed this pattern and revised its FD rates effective from 01 January 2026.
Current Indian Bank FD Rates: What Changed After 01 January 2026?
Indian Bank did not reduce all FD rates. The cut is selective and visible only in certain tenures.
| FD Period | Old Rate (% p.a.) | New Rate (% p.a.) 2026 | What This Means for You |
|---|---|---|---|
| 7–14 days | 2.80 | 2.80 | No change. Very short parking money earns the same. |
| 15–29 days | 2.80 | 2.80 | No impact. Used mostly for temporary funds. |
| 30–45 days | 3.00 | 3.00 | Same return as before. |
| 46–90 days | 3.25 | 3.25 | Stable. Good for 2–3 month deposits. |
| 91–120 days | 3.50 | 3.50 | No change for short-term savers. |
| 121–180 days | 3.85 | 3.85 | Half-year FDs untouched. |
| 181 days–<9 months | 4.50 | 4.50 | No reduction at all. |
| 9 months–<1 year | 4.75 | 4.75 | Same rate continues. |
| 1 year | 6.10 | 6.10 | Popular 1-year FD protected. |
| >1–<2 years* | 6.30 | 6.20 | Slight cut for longer lock-in. |
| IND Secure (444 days) | 6.60 | 6.45 | Still high-return, but trimmed a bit. |
| IND Green (555 days) | 6.50 | 6.40 | Green FD still better than normal FDs. |
| 2–<3 years | 6.30 | 6.15 | Medium-term returns reduced slightly. |
| 3–<5 years | 6.25 | 6.05 | Lower return for a long holding period. |
| 5 years | 6.00 | 6.00 | Long-term planners are unaffected. |
| Above 5 years | 6.00 | 6.00 | Fully unchanged, safe choice. |
*Except special tenures of 444 and 555 days.
Key Points –
- Short Term – If you are keeping FD for less than 1 year, then nothing has changed. Interest is the same, so no tension for short-term savings.
- Mid Period – But if your FD is for 1 year to 5 years, then the interest is a little less now. This is because overall rates have come down.
- Special FD – If you are going for a special FD, like IND Secure or IND Green, you will still get better interest than a normal FD, but not as high as before.
- Long Term – But if you are keeping money for a long time, like 5 years or more, interest is still around 6.00%. No big change there.
So overall, small savers and short-time FD people are safe. The bank has changed rates only where needed, not for everyone.
Example For You
Let’s take a normal example. Suppose you kept ₹5 lakh in an FD for 3 years. Before 1 January 2026, the bank was giving 6.25% interest on this FD. After the rate change, the interest comes down to around 6.05%.
Because of this small cut, over 3 years, the total interest you get will be around ₹3,000 to ₹3,500 less. For one depositor, this difference is not very big. But when the bank has many such long-term FDs, this small reduction helps the bank manage long-term interest cost.
What are the Benefits for Senior Citizen & Super Senior Citizen FD Rates in Indian Bank?
As per their official website, Indian Bank is still supporting senior depositors, even after the FD rate change. Senior citizens are continuing to get an extra interest benefit, so their returns are better compared to those of normal depositors.
Indian Bank gives extra interest on FD for elderly people. If your age is 60 to 80 years, you come under the senior citizen category. In this case, the bank gives about 0.50% extra interest every year.
If your age is 80 years or above, then you are treated as a super senior citizen. For this group, the extra interest is more, and the total benefit can go up to around 1.00% per year, based on how long you keep the FD. This extra interest helps seniors beat inflation and earn a stable income without taking risks.
Key Interest Rates for Domestic Deposits (Less Than ₹3 Crore)
This is the FD interest given from 1 January 2026 for callable deposits below ₹3 crore.
| FD Tenure | Public | Senior Citizen (60+) | Super Senior (80+) |
|---|---|---|---|
| 7–14 days | 2.80% | 3.30% | 3.30% |
| 15–29 days | 2.80% | 3.30% | 3.30% |
| 30–45 days | 3.00% | 3.50% | 3.50% |
| 46–90 days | 3.25% | 3.75% | 3.75% |
| 91–120 days | 3.50% | 4.00% | 4.00% |
| 121–180 days | 3.85% | 4.35% | 4.35% |
| 181 days–<9 months | 4.50% | 5.00% | 5.15% |
| 9 months–<1 year | 4.75% | 5.25% | 5.40% |
| 1 year | 6.10% | 6.60% | 6.85% |
| >1–<2 years | 6.20% | 6.70% | 6.95% |
| 2–<3 years | 6.15% | 6.65% | 6.80% |
| 3–<5 years | 6.05% | 6.80% | 6.95% |
| 5 years | 6.00% | 6.75% | 6.90% |
| Above 5–10 years | 6.00% | 6.75% | 7.00% |
3 Real Benefits
- Seniors Earn More – Even when FD rates come down, senior citizens still get extra interest, so their return is better than that of normal depositors.
- Long FD is Better – For normal people, a 5-year FD may look average. But for senior citizens, the interest can go up to around 7.00%, which is still a good return.
- Less Tax Cut – Senior citizens get TDS exemption up to ₹1 lakh interest in a year, so less tax is cut from the FD interest.
What Are the Special Fixed Deposit Options in Indian Bank?
Indian Bank has a few special FD options for 2026. The main ones are IND Secure, where money is kept for 444 days, and IND Green, which is for 555 days. These two FDs usually give better interest compared to normal FDs.
Apart from this, the bank also has a Tax Saver FD for people who want to save tax under a fixed deposit. At present, Indian Bank is mainly running three special FD schemes, and all of them are based on fixed time periods.
1. IND Secure FD (444 Days)
- IND Secure FD is a special fixed deposit scheme started on 08 May 2025
- Money is kept for 444 days
- Minimum deposit starts from ₹1,000
- The maximum deposit should be less than ₹3 crore
- This FD is callable, so you can close it before maturity, but a penalty will apply
- The scheme is available till 04 April 2026. After this date, the bank may continue or stop the scheme.
Interest Rates –
| Category | Interest Rate |
|---|---|
| Public | 6.45% |
| Senior Citizen | 6.95% |
| Super Senior Citizen | 7.20% |
This is the highest FD rate Indian Bank offers in 2026.
2. IND Green FD (555 Days)
- Money collected under this FD is used for environment-friendly work
- IND Green FD is a special fixed deposit scheme started on 26 March 2025
- Money is kept for 555 days. You can confirm with the branch for tenure.
- Minimum deposit starts from ₹1,000
- The Maximum deposit should be below ₹3 crore
- This FD is linked to green and sustainable projects
Interest Rates –
| Category | Interest Rate |
|---|---|
| Public | 6.40% |
| Senior Citizen | 6.90% |
| Super Senior Citizen | 7.15% |
3. IB Tax Saver FD Scheme
- FD cannot be broken during the 5-year lock-in period
- This is a normal fixed deposit meant for tax saving under Section 80C
- FD has a lock-in period of 5 to 10 years
- For the general public, the interest rate is around 6.00% per year
- For senior citizens, interest is about 6.50% per year (for a 5-year FD)
- Minimum deposit starts from ₹1,000
- The Maximum deposit allowed is ₹1.5 lakh in one financial year
Note: IND Super (400 days) and IND Supreme (300 days) FD schemes were stopped from 08 May 2025. New deposits are not allowed in these schemes now.
How to Apply for an IND Secure or an IND Green FD OR Other
1. Online Way (If you already have an Indian Bank account)
- First, go and log in to Indian Bank Net Banking or IndSmart App
- Go to the Online Term Deposit / e-TDA option
- Enter the FD amount and nominee details
- Choose the FD period – You will find this in the pre-approved section as well.
- 444 days → IND Secure
- 555 days → IND Green
- Confirm using OTP
- Download or save the FD receipt or slip
2. Branch Way (Offline Method)
- Visit your nearest Indian Bank branch
- Ask for the FD application form or you can download it download center at official portal.
- Fill the form and submit the KYC documents
- Deposit money by cheque or account transfer
- Collect the FD receipt from the counter
Who Can Open an FD & What Papers Are Needed
| Thing | Simple Explanation (Branch Talk) |
|---|---|
| Who Can Open FD | Any resident person, senior citizen, NRI, HUF, and also firms, companies, or trusts can open FD in Indian Bank |
| PAN Card | PAN card is must, mainly for TDS purpose |
| ID Proof | You can give Aadhaar, Passport, Voter ID, or Driving Licence |
| Address Proof | Same Aadhaar or ID card can be used for address proof |
| Photo | Photo is needed only if you open FD at branch |
The Important Points – Rules, Charges & Tax
1. Premature FD Break
- If you break the FD before 7 days, no interest is paid.
- If the FD amount is below ₹5 lakh, there is no penalty after 181 days.
- But if the FD amount is above ₹5 lakh and the FD is broken before 181 days, then around 1% interest penalty is applied.
2. Loan on FD
- If you need money and don’t want to close the FD, you can take a loan against the FD.
- The bank gives up to 90% of the FD amount as a loan.
- Loan interest is the FD rate plus around 1%.
3. Tax & TDS
- FD interest is taxable and comes under Income from Other Sources.
- For FY 2025–26, TDS is cut only if the interest crosses
- ₹50,000 for regular customers and ₹1 lakh for senior citizens.
- If you are eligible, you can submit Form 15G or 15H to stop TDS.
FAQs
What is the interest rate for an FD in the Indian Bank for 400 days?
Indian Bank currently does not offer a 400-day FD. Earlier schemes were discontinued. Closest option is IND Secure (444 days), where interest goes up to 7.20% for super senior citizens.
Which Indian Bank scheme offers a 444-day FD with up to 7.20% interest?
Indian Bank launched IND Secure (444 days) in May 2025. As of January 2026, it pays 6.45% (public), 6.95% (senior), and 7.20% (super senior) with callable option.
Which bank gives 9.5% interest on fixed deposits in India?
No major PSU or large private bank offers 9.5% FD interest in 2026. Such rates usually come from small NBFCs or risky co-ops. Always check RBI cover, credit rating, and lock-in rules.
How much interest will ₹1 lakh FD earn in Indian Bank?
For a 1-year FD, ₹1 lakh earns about ₹6,100 (public), ₹6,600 (senior), or ₹6,850 (super senior). Quarterly payout gives slightly lower returns due to discounting.
What are 5-year fixed deposit interest rates in Indian Bank?
In 2026, Indian Bank offers 6.00% (public), 6.75% (senior), and 6.90%–7.00% (super senior) for 5-year FDs. Seniors benefit more, making long-term FDs practical for retirement income.
Is Indian Bank FD calculator accurate for maturity amount?
Indian Bank’s FD calculator gives basic maturity estimates, but it doesn’t factor monthly payout discounts or premature penalties. Always cross-check final amount at branch or net banking before confirming large deposits.
Is Indian Bank FD safe for senior citizens in 2026?
Yes. Indian Bank is a government PSU bank, and deposits up to ₹5 lakh are insured by DICGC. Senior citizens also get extra interest and higher TDS exemption, improving overall safety.
What is the best FD option in Indian Bank right now?
For most people, 1-year FD is balanced. For seniors, IND Secure (444 days) gives higher returns. Tip: split money between 1 year + special FD to manage risk and flexibility.
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