Indian Bank has announced higher interest rates on two special tenure fixed deposits, effective from October 23, 2026. The revision applies to the 555‑day Ind Grow scheme and the 777‑day Ind Prosper scheme, offering depositors better returns in the medium term.
The 555‑day Ind Grow deposit now carries an interest rate of 6.80%, up from 6.65%. The 777‑day Ind Prosper deposit has been raised to 6.75% from 6.60%. Senior citizens will continue to enjoy an additional 0.50% benefit, while super senior citizens receive 0.75% extra, making these schemes attractive for long‑term savers.
The hike follows the Reserve Bank of India’s recent repo rate increase of 25 basis points to 5.50% on October 7, 2026. Banks usually adjust deposit rates after such policy changes to attract funds and remain competitive in the market.
Depositors should note that callable fixed deposits allow premature withdrawal with penalties, while non‑callable deposits restrict early exit. Interest earned is taxable as per income slab, with tax deducted at source if annual interest crosses ₹50,000 for general depositors or ₹1,00,000 for senior citizens.
The revision benefits general depositors with improved returns and provides senior citizens with even higher earnings. Customers are advised to compare rates across banks before locking funds, ensuring the chosen tenure matches liquidity needs.