Indian Bank Fixed Deposit (FD) Interest Rates 2025

Like most banks, Indian Bank offers a range of deposit and loan products to both retail and commercial customers. Among its deposit offerings, the bank provides four distinct fixed deposit (FD), or time deposit, schemes tailored to meet the diverse needs of its retail customer base. 

These schemes include tax-saving options, such as the five-year FD and capital gains schemes, which allow customers to claim tax benefits on their savings and investment gains. Other schemes offer greater flexibility, allowing account holders to customize the deposit tenure and other details according to their individual preferences. 

Read on to learn more about how these schemes work and choose the one that best suits your financial goals.

Highlights for 2025 Fixed Deposit Scheme of Indian Bank

Fixed Deposit Interest Rates 2025 of Indian Bank

The interest rates provided in the table below is applicable to deposits less than Rs.2 crore and are effective from 5 February 2021.

Interest rates are subject to change from time to time.

Different Types of Indian Bank FD Schemes

1. Fixed Deposit:The scheme allows you to deposit a lump sum for a fixed period and earn interest on the deposit with an easy liquidity option. The interest will be paid out on quarterly intervals or in monthly intervals at a discounted rate. The minimum deposit is Rs.1,000 with no upper limit. The minimum tenure is seven days, and the maximum is 10 years.
2. Money Multiplier Deposit:The scheme requires you to make a minimum deposit of Rs.1,000 and multiples of Rs.100 thereafter. There is no upper limit on the deposit amount. The deposit must be held with the bank for a tenure of 6 months up to 10 years. The interest gets compounded quarterly.
3. Short Term Deposit:The scheme allows depositors to place their money for a short period and earn a fixed interest income. The interest will be paid on maturity along with the principal deposit. The tenure can range from 7 days up to 180 days. The minimum deposit is Rs.1,000 but no maximum limit. Senior citizens get an additional interest rate of 0.5% for deposits of up to Rs.10 crore, bank staff get 1.00% for deposits up to Rs.2 crore, and bank ex-staff who are senior citizens get 1.50% on deposits of up to Rs.10 crore.
4. Motor Accident Claim Tribunal Deposit (MACAD):The scheme offers two products as suggested by the court; namely, Motor Accident Claims Annuity Deposit (MACAD) and Principal Equally Distributed (PED). The former comes with the facility of Equated Monthly Instalments (EMI), and the latter offers monthly interest payouts. Further, MACT SB is created for crediting the monthly annuity from MACAD. The deposit amount depends on the relevant tenure and a minimum monthly annuity of Rs.1,000. The tenure can range from 3 years up to 18 years as directed by the tribunal or court.

Indian Bank FD Special Features and Benefits

• The minimum tenure is seven days, and the maximum is 10 years.
• The minimum deposit amount is Rs.1,000.
• Senior citizens can get an additional 0.5% interest above the regular rates.
• Quarterly and monthly interest payout options are available.
• Loan and nomination facilities are available.
• Auto-renewal facilities are available.

Basic Eligibility Criteria for Indian Bank FD

• Resident individuals – Single account
• Two or more individuals – Joint account
• Minors
• Hindu Undivided Families (HUFs)
• Non-resident Indians (NRE account holders)
• A firm, a company or an association in its name

Tax Benefits on Indian Bank Fixed Deposit

1. IB Tax Saver Scheme:Depositing a minimum amount of Rs.1,000 up to Rs.1.5 lakh can provide income tax deductions under Section 80C of the Income Tax Act, 1961. You can choose for interest payout on a monthly or quarterly basis. You can also opt for the accrued interest to be paid out on maturity. The minimum tenure to get the income tax benefits is five years. The maximum tenure is 10 years. Individuals and HUFs having a PAN card can open this account.
2. Capital Gains:This scheme allows taxpayers to claim tax exemption from capital gains if the amount of capital gains or the net consideration is deposited in this account on or before the due date of filing income tax returns as specified under Section 54 (B, D, F and G) of the Income Tax Act, 1961. The account is offered both in the form of a savings account and as a term deposit. The minimum deposit is Rs.1,000, and minimum tenure is seven days and can go up to three years.

FD Interest Rate Calculator

Our FD calculator page gives you a way to predict the returns you may receive upon putting your money in a fixed deposit account.

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