If you are planning to invest in a Fixed Deposit (FD), there is good news for you. The public sector lender, Indian Bank, has increased the interest rates on two of its special FD schemes. The bank has raised the interest rate by 0.15% for FDs with tenures of 555 days and 777 days. The new rates have come into effect from October 23. However, the interest rates for most other FD tenures offered by the bank remain unchanged.

What are the new interest rates?
Indian Bank has revised the rates for two of its special FD schemes:

'Ind Grow' FD (555 days): The annual interest rate has been increased from 6.65% to 6.80%.

'Ind Prosper' FD (777 days): The annual interest rate for this scheme has been increased from 6.60% to 6.75%.

These rates apply to retail deposits of less than ₹3 crore.

What are the benefits for senior citizens?
The bank also offers additional interest to elderly customers on these FD schemes:

Senior citizens (aged 60 years and above): They will receive an annual interest rate of 7.30% on the 555-day FD and 7.25% on the 777-day FD.
Super senior citizens (aged 80 years and above): They will receive an annual interest rate of 7.55% on the 555-day FD and 7.50% on the 777-day FD.

What are the interest rates for other FDs?

 The current interest rates for various fixed deposit (FD) tenures at Indian Bank are as follows:

7 to 14 days: 2.80%
30 to 45 days: 3.00%
46 to 90 days: 3.25%
91 to 120 days: 3.50%
121 to 180 days: 3.85%
181 days to less than 9 months: 4.50%
9 months to less than 1 year: 4.75%
1 year: 6.10%

More than 1 year and less than 2 years: 6.20%
500-day 'Ind Green' FD: 6.40%
2 years to less than 3 years: 6.15%
3 years to less than 5 years: 6.05%
5 years and above: 6.00%

Things to consider before opening an FD
Before investing in an FD, it is important to understand its tenure, the rules regarding premature withdrawal, and tax-related aspects. The interest earned on an FD may be subject to taxation based on your applicable income tax slab. The new interest rates apply to fresh deposits as well as the renewal of maturing FDs.

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