IndusInd Bank increases FD rates: up to 8.25% for senior citizens
Senior citizens can get up to 8.25% interest; check out new features offered by the lender
 "IndusInd Bank increases FD rates: up to 8.25% for senior citizens")
Private-sector lender IndusInd Bank has revised its fixed deposit (FD) interest rates for select tenures, effective late April, joining industry peers in taking such a decision after the central bank trimmed the repo rate by 25 basis points.
IndusInd Bank increased rates for certain longer-term deposits and trimmed them for shorter ones. The lender is now offering FD rates ranging from 3.5 per cent to 7.75 per cent per annum and 4 per cent to 8.25 per cent for senior citizens.
Revised fixed deposit rates of IndusInd Bank
According to the bank’s latest rate chart
The highest rate of interest offered is 7.75 per cent per annum for general customers and 8.25 for senior citizens on tenure of 15 to 16 months (one year three months to one year four months).
Below is a detailed list of tenures and FD rates provided by the bank.
| < 3 Cr* DOMESTIC(RESIDENT) NRE/NRO deposits | < 3 Cr* (Senior Citizen) Not applicable for NRE/NRO deposits | |
| Tenure | Rate | Rate |
| 7 days to 14 days | 3.5 | 4 |
| 15 days to 30 days | 3.5 | 4 |
| 31 days to 45 days | 3.75 | 4.25 |
| 46 days to 60 days | 4.75 | 5.25 |
| 61 days to 90 days | 5 | 5.5 |
| 91 days to 120 days | 7 | 7.5 |
| 121 days to 180 days | 7 | 7.5 |
| 181 days to 210 days | 7 | 7.5 |
| 211 days to 269 days | 7 | 7.5 |
| 270 days to 354 days | 7 | 7.5 |
| 355 days to 364 days | 7 | 7.5 |
| 1 Year to below 1 Year 3 months | 7.5 | 8 |
| 1 Year 3 months (15 months) to below 1 Year 4 months (16 months) | 7.75 | 8.25 |
| 1 Year 4 months to below 1 Year 5 months | 7.5 | 8 |
| 1 Year 5 months to below 1 Year 6 months | 7.5 | 8 |
| 1 Year 6 Months up to 2 Years | 7.5 | 8 |
| Above 2 Years to below 2 Years 6 Month | 7.25 | 7.75 |
| 2 years 6 Months (30 months) to below 2 years 7 months (31 months) | 7.25 | 7.75 |
| 2 year 7 months to 3 years 3 months | 7.25 | 7.75 |
| Above 3 years 3 months to below 61 month | 7.1 | 7.6 |
| 61 month and above | 7 | 7.5 |
| Indus Tax Saver Scheme (5 years) | 7.1 | 7.6 |
Additional features IndusInd has for FDs
Monthly and quarterly interest payouts
The choice can be selected at the time of FD booking.
Reinvestment Options
IndusInd Bank also allows reinvestment of fixed deposits:
Renew principal and interest
Renew principal and pay interest back
This provides flexibility based on liquidity preferences.
Taxation and TDS rules
FD interest is fully taxable under the Income Tax Act, 1961.
It is added to your annual income and taxed as per your income slab.
Banks deduct TDS if annual interest exceeds Rs 40,000 for general customers or Rs 50,000 for senior citizens.
What should depositors do?
Long-term savers may benefit from the higher returns on the one–two year FD option.
Those planning to park funds for shorter durations may want to explore alternative banks or tenure options, given the recent rate reduction.