Indian Fixed Deposit Rate
Indian Fixed Deposit Rate - FD Rate in India
A Fixed Deposit (FD) yields a higher rate of interest than a regular savings account. The drawback to a Fixed Deposit account is that money cannot be withdrawn from the account except upon the payment of a penalty. To compensate for the low liquidity, banks in India generally offer higher rates of interest on these Term Deposits.
Money can be deposited in an FD account for a time period that ranges from 7 days to 10 years. Banks are free to set their own FD interest rate which in India can generally range from 3.5% - 8%, sometimes even as high as 9% depending on the tenure and amount among other factors.
Fixed Deposits are considered to be very safe investments and free from fluctuations and volatility. Hence, a Fixed Deposit is one of the most popular savings instruments among the general population in India. The rewards earned from an FD are proportionately low when compared to other forms of investment, but it is free from market risks.
If you have idle money that you wish to invest, opening an FD is a simple and safe option, and also has the added advantage of a hassle-free documentation process. Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened.
Apart from banks, NBFCs and corporates too offer fixed deposits.
Indian Bank deposit rates
The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest. But a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future.
Indian Bank Interest Rates typically range from 4%-8% per annum.
Indian Bank FD rates
Following is an overview of Indian Bank Term Deposit Rates and Indian Bank Short-Term Fixed Deposit Interest Rates.
Indian Bank Interest Rates on Fixed Deposits 2015 – 2016:
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Indian Bank directly.)
|Period||Revised Interest (%) per annum < Rs. 1 crore||Revised Interest (%) per annum Rs. 1 crore to Rs. 5 crores|
|7 days to 14 days||5.50||5.50|
|15 days to 29 days||5.50||5.50|
|30 days to 45 days||5.75||5.75|
|46 days to 90 days||6.25||6.25|
|91 days to 120 days||6.25||6.25|
|121 days to 180 days||6.5||6.25|
|181 days to less than 9 months||7.00||6.75|
|9 months to less than 1 year||7.25||6.75|
|Above 1 year to less than 2 years||7.25||6.75|
|2 years to less than 3 years||7.25||6.75|
|3 years and above||7.00||6.50|
NRE Term Deposits:
|Upto Rs. 1 Crore||Rs. 1 crore to Rs 5 crore|
|Above 1 year to less than 3 years||7.25||7.00|
|3 years and above||7.25||7.00|
Indian Bank FD Interest Rates for Senior Citizens
Indian Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates as applicable on a regular FD. As of now Indian Bank Senior Citizen FD rate of interest is 0.50% higher for all maturity periods for an amount up to Rs. 1 crore for short term deposits, fixed deposits and reinvestment plan schemes.
How to Calculate Indian Bank Fixed Deposit Interest
You can use the Indian Bank FD Calculator to help you identify how much interest you will earn on a principal amount. All you need to do is enter the principal amount, number of years, rate of interest per annum and compounding period – and the calculator will do the rest and present you with a breakup of the interest earned and the maturity amount. You can also use online resources to calculate the interest accrued on your Indian Bank FD. There are several online websites that allow you to instantly calculate the interest earned.
Using the Indian Bank FD calculator, you can enter as many combinations as you want, and the calculator will give you instant and accurate results. Using an online calculator helps in determining how much you want to invest and helps identifying the final maturity amount.
You can also calculate the interest earned and the maturity value on the principal amount using the following formula.
Calculate IDBI FD Rate
A = P x (1 + r/n)nt
I = A - P
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Years
n = Compounded Interest Frequency
I = Interest Earned
Indian Bank FD Premature Withdrawal Penalty
Breaking a fixed deposit before the maturity might be required in cases of emergency like, for instance, a medical emergency where urgent funds are required. In such cases the bank generally allows for pre closure of the FD account; keep in mind that penalty charges are applicable. The bank typically charges a penalty which is communicated to you at the time of application of FD Deposit.
Indian Bank FD – FAQS
What is the minimum period for a fixed deposit?
The minimum period is 7 days.
For how long can I keep my deposit?
You can open a fixed deposit account for any period ranging from 7 days to 10 years.
Are there any tax benefits to opening an FD?
The interest earned through your FD is taxable as per your your Income Tax slab if it goes over the Rs. 10000 mark in a financial year.
In order to save on the taxes, you can choose to opt for the Indian Bank Tax Saver scheme, which caters to the need of the depositors who want to avail tax benefits under section 80C of Income Tax Act. Keep in mind that no loan / foreclosure is allowed for up to 5 years.
What is the minimum amount which I can invest in a Tax Saver scheme?
Minimum amount to be invested is Rs.100 or in multiples of Rs.100.
Who is eligible to book an FD with Indian Bank?
All resident individuals including minors and Hindu undivided families are eligible to open an FD account with Indian Bank.