Indian Bank hikes interest rates on special-tenure fixed deposits — check how much 555-day and 777-day FDs are offering — SkimNews
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- Indian Bank increased interest rates by 15 basis points on two special-tenure FD schemes, effective Friday, October 23, 2026; rates on other listed tenures remain unchanged.
- Ind Grow pays 6.80% annually on the 555-day deposit, up from 6.65% following the revision.
- Ind Prosper offers 6.75% annually on the 777-day deposit, up from 6.60%.
- Reserve Bank of India raised the repo rate by 25 basis points on October 7 to 5.50% from 5.25%, marking its first increase since February 2023.
- Indian Bank grants senior citizens an additional 0.5 percentage point and super senior citizens an additional 0.75 percentage point over general-customer rates on both special deposits.
- Special-tenure FDs follow product-specific exit rules: callable deposits can permit early withdrawal with a penalty and recalculated interest, while non-callable deposits impose stricter limits.
- FD interest is taxed according to the applicable income-tax slab, with source-tax thresholds of ₹50,000 annually for general citizens and ₹1,00,000 for senior citizens.
Why it matters: Senior and super-senior depositors receive the largest stated boost: Indian Bank’s 6.80% 555-day and 6.75% 777-day base rates carry an extra 0.50 and 0.75 percentage point, respectively. Savers choosing them also accept a long lock-in, with early withdrawal governed by product-specific penalties, recalculated interest or stricter limits.
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