Chennai: Indian Bank has increased interest rates on two special fixed deposit schemes, offering general customers 6.80% per annum on its 555-day IND GROW deposit and 6.75% on the 777-day IND PROSPER scheme. The revised rates take effect from October 23, 2026, giving depositors higher returns on these selected tenures.
The bank has raised both rates by 15 basis points, or 0.15 percentage point. IND GROW previously offered 6.65%, while IND PROSPER carried an interest rate of 6.60%. The revision comes amid competition among banks to attract deposits and manage their funding requirements.
New Indian Bank FD interest rates
The revised rates apply to the bank’s special retail term deposit products. Customers should check the applicable rate and terms with Indian Bank before booking a deposit, as rates may differ by customer category and can be revised by the bank.
| Special FD scheme | Tenure | Earlier rate | Revised rate |
|---|---|---|---|
| IND GROW | 555 days | 6.65% | 6.80% |
| IND PROSPER | 777 days | 6.60% | 6.75% |
Both schemes are available for eligible deposits starting at ₹1,000 and below ₹3 crore, according to the bank’s product information. The deposits are offered as fixed deposits or money multiplier deposits, subject to the scheme’s terms.
What senior citizens can earn
Indian Bank generally provides additional interest on eligible retail term deposits for senior and super senior citizens. Based on the bank’s stated additional-rate structure for these special schemes, the revised rates work out as follows:
| Customer category | IND GROW, 555 days | IND PROSPER, 777 days |
|---|---|---|
| General customers | 6.80% | 6.75% |
| Senior citizens | 7.30% | 7.25% |
| Super senior citizens | 7.55% | 7.50% |
These senior-citizen figures reflect the additional interest structure applied to the revised public rates. Depositors should confirm eligibility and the final applicable rate with the bank before investing.
Why the bank has revised its rates
Banks periodically adjust fixed deposit rates according to their funding needs, liquidity position, loan growth and competition for customer deposits. Higher rates on selected tenures can help a bank attract funds without changing the rates across its entire deposit portfolio.
Indian Bank’s latest revision follows a period of changing interest-rate conditions. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50% on October 7, 2026. However, a change in the policy rate does not automatically require banks to increase fixed deposit rates by the same amount. Individual lenders make decisions based on their own funding requirements and market conditions.
The increase of 15 basis points on each scheme is therefore a targeted adjustment rather than a uniform increase across all Indian Bank deposits. Customers considering other tenures should check the latest rate card rather than assume that the same increase applies to every fixed deposit.
How much difference does the higher rate make?
The revised rates offer a modest improvement in the return available to customers investing in the two schemes. For example, the difference between the old and new rates is 0.15 percentage point per annum.
On a deposit of ₹1 lakh, that difference represents approximately ₹150 in additional interest for one year before accounting for the exact tenure, compounding method and applicable tax. The actual additional interest over 555 or 777 days will depend on how the bank calculates and pays interest under the selected deposit option.
Depositors should also consider whether they may need access to the money before maturity. Premature withdrawal conditions, applicable penalties and the interest calculation method can affect the final amount received.
What customers should check before investing
Before booking IND GROW or IND PROSPER, customers should compare the interest rate with other available tenures and consider when they will need the funds. A higher rate is not necessarily the best choice if the deposit’s maturity date does not suit the investor’s financial plans.
Customers should verify the effective date of the revised rates, eligibility rules, premature withdrawal conditions and the treatment of interest for tax purposes. Those investing large sums should also check whether the deposit falls under retail or bulk deposit rules, since the rates and terms may differ.
Indian Bank’s latest move gives depositors a slightly better return on its two special tenures. However, the suitability of either scheme will depend on the investor’s time horizon, liquidity needs and overall savings strategy.