Indian Bank Raises 555-Day and 777-Day FD Rates to 6.80%: What Savers Should Know

Indian Bank has raised the interest rate on its 555-day and 777-day fixed deposits to 6.80%. This is according to reporting by CNBC TV18. Want to lock money away for about one and a half to two years? These two tenures now pay more.

The headline doesn't say who gets the rate or when it starts. So check those details with the bank before you book. You can also compare it with other banks on our interest rates page.

Key takeaways

• Indian Bank's 555-day and 777-day FDs now earn 6.80%, as reported by CNBC TV18.
• These are special tenures, not the usual 1-year or 2-year choices.
• On ₹1,00,000, 6.80% for 555 days earns roughly ₹10,300 before tax.
• Always confirm who qualifies, and check the bank's own rate sheet before you invest.
• Interest is taxable, so your real return is lower than the headline rate.

How special FD tenures work

A fixed deposit, or FD, is simple. You hand the bank a lump sum for a set time. The bank pays you a fixed rate, and you get your money back at the end.

Most banks sell standard terms like one year or two years. Many also add odd tenures such as 555 days or 777 days. These are often priced a bit higher than the standard terms.

Banks do this to attract deposits for a limited period. The special rate usually applies only to that exact number of days. A deposit of 600 days won't get the 555-day rate.

So 555 days is about 1.5 years. And 777 days is a little over two years. If your goal fits those windows, the rate is worth a look.

What changes for savers

Here's a simple example. Say you put ₹1,00,000 into a 555-day FD. At 6.80%, simple interest comes to about ₹10,339 over the full term. Banks usually add interest every quarter, so the real figure can be a little higher.

The table below shows rough simple interest for the same amount at different rates. These are approximate figures for illustration only.

Rate	Deposit	Tenure	Approx. interest
6.00%	₹1,00,000	555 days	₹9,123
6.50%	₹1,00,000	555 days	₹9,883
6.80%	₹1,00,000	555 days	₹10,339
7.00%	₹1,00,000	555 days	₹10,644

So moving from 6.50% to 6.80% adds about ₹456 on this deposit. It's a modest gain. It adds up if you're investing a larger sum.

Who is affected

New depositors gain the most. If you're opening an FD now, you can choose these tenures at the higher rate.

People with existing FDs usually don't see any change. An FD you already booked keeps the rate it was booked at. You would need to break it and reopen it to get the new rate. That can cost you a penalty.

Retirees and others who live on interest should also take note. A slightly higher rate helps when you need steady income. But the bank may offer a different rate for senior citizens, so ask.

Your money is also protected. Under DICGC rules, bank deposits are insured up to ₹5 lakh per depositor per bank. That covers your principal and interest together.

What to do now

Don't rush. A short checklist will help you decide.

1. Check the bank's official rate sheet for the exact rate and the date it starts.
2. Confirm if the rate is for everyone or only for some depositors.
3. Ask what the penalty is if you need the money early.
4. Compare with two or three other banks on our interest rates page.
5. Think about tax. Interest is added to your income and taxed at your slab rate.

Also keep an emergency fund in an easy-to-access account. Don't lock away money you might need next month. For more updates like this, visit our news hub.

Frequently asked questions

What is the new Indian Bank FD rate for 555 and 777 days?

According to CNBC TV18, Indian Bank has raised the rate on both tenures to 6.80%. Check the bank's own rate sheet for the exact terms.

Will my existing FD earn the new rate?

Usually not. An existing FD keeps the rate it was booked at. Breaking it early may also cost you a penalty.

Is the interest on this FD taxable?

Yes. FD interest is added to your income and taxed at your slab rate. The bank may also deduct tax at source once your interest crosses a yearly limit.