Indian Bank Fixed Deposit Interest Rates 2026: Fixed deposit investors have received a new interest rate update ahead of the festive season. Public-sector lender Indian Bank has reportedly increased the interest rates on two of its special fixed deposit schemes by 15 basis points, offering higher returns to eligible depositors.
The revised rates came into effect on October 23, 2026, according to a report published on October 25.
Following the revision, the bank's 555-day Ind Grow fixed deposit offers an annual interest rate of 6.80% for general customers, while the 777-day Ind Prosper deposit offers 6.75%.
Senior citizens and super senior citizens may receive additional interest benefits, subject to the bank's applicable terms and eligibility conditions.
Here is a detailed look at the revised FD rates, maturity calculations, senior citizen benefits and important rules investors should understand before depositing their money.
Indian Bank FD Interest Rates Revised From October 23
Indian Bank has increased interest rates on two special-tenure fixed deposit products.
The revision is limited to the 555-day and 777-day schemes mentioned in the report.
Both deposits have received an increase of 0.15 percentage points, equivalent to 15 basis points.
The report does not indicate a corresponding increase across all other fixed deposit tenures.
Indian Bank New FD Rates
| FD scheme | Previous interest rate | Revised interest rate | Increase |
|---|---|---|---|
| Ind Grow – 555 days | 6.65% | 6.80% | 0.15% |
| Ind Prosper – 777 days | 6.60% | 6.75% | 0.15% |
Rates are annualised and based on the supplied October 25, 2026 report.
The increase means that customers opening eligible new deposits at the revised rates can earn slightly more interest than under the previous rate structure.
Existing fixed deposits generally continue at their contracted interest rates unless their specific terms provide otherwise.
Indian Bank 555-Day FD: What Is the New Interest Rate?
Under the reported revision, the Ind Grow fixed deposit with a tenure of 555 days now offers 6.80% annual interest to general customers.
Previously, the rate was 6.65%.
The scheme is designed for customers willing to keep their money deposited for approximately one year and six months.
The final maturity amount depends on the deposit amount, compounding method and applicable product conditions.
Customers should also check whether premature withdrawal is permitted and whether any penalty applies.
Indian Bank 777-Day FD: How Much Interest Will You Get?
The Ind Prosper fixed deposit has a tenure of 777 days, or slightly more than two years.
The reported annual interest rate has increased from 6.60% to 6.75%.
Although its annual rate is marginally lower than that of the 555-day scheme, the longer tenure allows the deposit to earn interest over a greater period.
This means the total interest earned over the full term may be higher, even though the annual percentage rate is slightly lower.
The choice between the two deposits depends on how long the customer can keep the money invested.
Indian Bank FD Rates for Senior Citizens
Senior citizens may qualify for an additional interest rate over the rate available to general customers.
The supplied report illustrates a 0.50 percentage-point additional rate for senior citizens and a 0.75 percentage-point additional rate for super senior citizens.
Based on those assumptions, the rates would be as follows:
| Customer category | 555-day Ind Grow | 777-day Ind Prosper |
|---|---|---|
| General customers | 6.80% | 6.75% |
| Senior citizens | 7.30% | 7.25% |
| Super senior citizens | 7.55% | 7.50% |
Important: The senior citizen and super senior citizen figures are calculated using the additional-rate assumptions in the supplied report. Customers should verify the bank's official rate chart, qualifying age and deposit conditions before investing.
Indian Bank FD Calculator: Returns on ₹1 Lakh
Suppose a general customer deposits ₹1 lakh in either of the two special fixed deposit schemes.
For an illustrative calculation, assume that interest is compounded quarterly and paid at maturity.
The following figures are approximate.
| FD scheme | Annual interest rate | Approximate interest over full tenure | Approximate maturity amount |
|---|---|---|---|
| 555-day Ind Grow | 6.80% | ₹10,800 | ₹1,10,800 |
| 777-day Ind Prosper | 6.75% | ₹15,300 | ₹1,15,300 |
These are rounded estimates using quarterly compounding and the stated tenures. Actual amounts can vary because of the bank's calculation conventions, payout option, applicable taxes and deposit conditions.
The table highlights why the total interest earned should be compared alongside the tenure.
The 777-day scheme can generate more total interest because the money remains deposited for longer.
How Much Will ₹5 Lakh Earn?
Investors considering a larger deposit may also want to understand the potential maturity amount.
Using the same illustrative quarterly compounding assumptions:
| Deposit amount | FD tenure | Annual rate | Approximate maturity value |
|---|---|---|---|
| ₹5 lakh | 555 days | 6.80% | ₹5.54 lakh |
| ₹5 lakh | 777 days | 6.75% | ₹5.77 lakh |
These calculations are intended to demonstrate the approximate return over each tenure.
They do not represent a personalised quotation or a guaranteed bank-issued maturity figure.
For an exact amount, customers should use Indian Bank's official fixed deposit calculator or request a deposit illustration from the branch.
What Is the Difference Between 555-Day and 777-Day FDs?
Both schemes provide fixed deposit exposure for a specified period, but their tenures and reported annual rates differ.
The 555-day scheme offers a slightly higher annual interest rate and a shorter commitment.
The 777-day scheme requires customers to keep their money deposited for a longer period but can generate more total interest over its full tenure.
A customer expecting to need the money sooner may find the shorter tenure more suitable.
Someone with a longer investment horizon may prefer to compare the total maturity value of the 777-day option.
However, the interest rate alone should not determine the decision.
Premature withdrawal conditions, liquidity needs and the customer's financial goals also matter.
Can You Withdraw an FD Before Maturity?
Premature withdrawal rules are important when selecting a fixed deposit.
Some deposits permit early closure, but the bank may recalculate interest according to the period for which the money remained deposited.
A penalty may also apply.
Certain non-callable fixed deposits have more restrictive withdrawal conditions.
Customers should check whether their selected Ind Grow or Ind Prosper product is callable and review all applicable terms.
Closing an FD early may reduce the amount of interest received.
Therefore, money required for emergencies or near-term expenses should not be committed to a long-term deposit without considering liquidity.
Is Indian Bank FD Interest Taxable?
Yes. Interest earned from bank fixed deposits is generally taxable according to the investor's applicable income-tax provisions.
The bank may deduct tax at source when interest exceeds the prescribed threshold, subject to the applicable rules.
For the relevant financial year, the report refers to TDS thresholds of ₹50,000 for non-senior citizens and ₹1 lakh for senior citizens.
However, the TDS threshold should not be confused with a tax exemption.
Even when TDS is not deducted, FD interest may still need to be reported in the investor's income-tax return.
Customers should verify the rules applicable to their financial year and individual circumstances.
Is Money Deposited in Indian Bank FD Insured?
Eligible bank deposits are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) framework.
The deposit insurance limit is ₹5 lakh per depositor per insured bank, including principal and interest, subject to the applicable rules.
Deposits held in different branches of the same bank are generally aggregated for insurance purposes when held in the same right and capacity.
Customers investing larger amounts should understand this limit as part of their overall deposit planning.
Why Are Banks Increasing FD Interest Rates?
Banks review their deposit rates based on funding requirements, market competition, liquidity conditions and monetary policy developments.
The supplied report notes that the Reserve Bank of India increased the repo rate by 25 basis points to 5.50% on October 7, 2026.
Changes in the policy rate can influence the broader cost of funds in the banking system.
However, banks do not necessarily revise all fixed deposit rates immediately or by the same amount.
Indian Bank's reported increase applies specifically to the two special deposit tenures discussed here.
How to Open an Indian Bank Fixed Deposit
Customers interested in these schemes can check the available application channels through Indian Bank.
Depending on eligibility and the product's availability, deposits may be opened through authorised digital banking facilities or at a branch.
Before proceeding, customers should confirm the minimum deposit amount, permitted maximum amount, available interest payout options and applicable identification requirements.
They should also check the latest rate and whether the special scheme remains available on the intended booking date.
The official Indian Bank website is https://www.indianbank.in/.
Final Update
Indian Bank has reportedly raised interest rates on its 555-day Ind Grow and 777-day Ind Prosper fixed deposit schemes by 15 basis points, effective October 23, 2026.
The revised annual rates for general customers are 6.80% for 555 days and 6.75% for 777 days.
Eligible senior citizens may receive additional interest, depending on the bank's applicable rules.
Before opening a deposit, customers should compare the full maturity amount, deposit tenure, premature withdrawal conditions and tax implications.
Disclaimer: The interest rates and effective date are based on the supplied October 25, 2026 report and have not been independently verified against Indian Bank's latest official rate circular. Maturity figures are illustrative estimates, not guaranteed quotations. Customers should confirm current terms directly with the bank.
