IndusInd Bank, one of the major lenders in the private sector, has modified the interest rates on fixed deposits under ₹2 crore. According to the bank’s official website, the new rates take effect on November 22, 2022. Following the change, the bank is currently offering interest rates on FDs maturing in 7 days to 61 months and above that range from 3.50% to 6.50% for the general public and 4.25% to 7.25% for senior citizens. The maximum interest rate for deposits maturing in 2 Years up to 2 Years 1 Month is now 7.25% for the general public and 8.00% for senior citizens.
IndusInd Bank FD Rates
The bank will give a 3.50% interest rate on FDs maturing in 7 days to 30 days, and a 4.00% interest rate on those maturing in 31 days to 45 days. The interest rate on deposits will now range from 4.25% for those maturing in 46 days to 60 days to 4.50% for those maturing in 61 days to 120 days. On FDs maturing in 121 days to 180 days, IndusInd Bank promises an interest rate of 4.75%, and on those maturing in 181 days to 269 days, 5.50%. On FDs maturing in 270 days or 354 days, the bank is offering an interest rate of 5.75% and on those maturing in 355 days or 364 days, IndusInd Bank is promising an interest rate of 6.00%.
Deposits maturing in 1 year to under 1 year 6 months now pay 6.75% interest, while those maturing in 1 year 6 months to below 2 years now pay 7.00% interest. IndusInd Bank is promising an interest rate of 7.25% on FDs maturing in 2 Years up to 2 Years 1 Month and 7.00% on those maturing in Above 2 Years 1 Month to below 3 years. IndusInd Bank is now promising an interest rate of 6.75% on FDs maturing in 3 years to below 61 months and 6.50% on those maturing in 61 months and above. On the Indus Tax Saver Scheme (5 years), the general public will now get an interest rate of 6.75%. Every quarter, interest is compounded, and for deposits with maturities up to 180 days, simple interest is provided.
IndusInd Bank has mentioned on its website that “An additional interest rate of 0.75% over and above the card rates is applicable for Term Deposits of Senior citizens (Age 60 years & above) for value below Rs. 2 cr. (Not applicable for NRO deposits). However, in case the senior citizen opts to place deposits of value greater than or equal to 2 Cr, the benefit of additional interest shall not be available.”
Under Section 194A, elderly persons (individuals 60 years of age and above) and the general public are entitled for exemptions from TDS on FD interest gains up to Rs. 50,000 and Rs. 40,000, respectively. Hence, tax deductions are available for income that exceeds the thresholds for exemption from paying taxes. TDS is withheld at 20% if a PAN card is not present.
