Indian Bank has revised its fixed deposit rates, according to reporting by Moneycontrol.com. Its 555-day deposit now offers 6.80%. Its 777-day deposit offers 6.75%.
If you're a saver, these two special tenures are worth a look. On ₹1,00,000, the 555-day plan earns about ₹10,340 in simple interest. Confirm the final rate with the bank before you book.
Key takeaways
- Indian Bank's 555-day FD now offers 6.80%, as reported by Moneycontrol.com.
- Its 777-day FD offers 6.75%, a touch lower for a longer lock-in.
- On ₹1 lakh, the 555-day plan earns roughly ₹10,340 before compounding.
- Check early withdrawal rules and senior citizen rates before you decide.
- Bank deposits up to ₹5 lakh per bank are insured.
How these special FDs work
A fixed deposit, or FD, means you lock money in a bank for a set time. The bank pays a fixed rate on it. If you withdraw early, you usually pay a penalty.
Most banks offer standard tenures like one year or two years. Some also run odd tenures such as 555 or 777 days. These are often called special schemes. They sometimes pay a little more than regular FDs.
The report we have doesn't say whether these rates went up or down. It also doesn't say when they start. So check the bank's website or your branch before you act.
What it means for your savings
Here's a simple example. Say you put ₹1,00,000 in each plan. Banks usually add interest every quarter. So your real return will be slightly higher than these simple figures.
| Option | Rate | Time | Simple interest on ₹1,00,000 |
|---|---|---|---|
| Indian Bank 555-day FD | 6.80% | 555 days | About ₹10,340 |
| Indian Bank 777-day FD | 6.75% | 777 days | About ₹14,370 |
| Savings account (example) | 3.00% | 555 days | About ₹4,560 |
The 555-day plan has the higher rate. The 777-day plan pays more rupees because you wait longer. The savings account line is only there for comparison. Savings rates differ from bank to bank.
The longer plan earns about ₹4,030 more. But it needs 222 extra days of waiting. Ask yourself if you can spare the money that long.
Who is affected
These rates matter most to a few groups of savers:
- Retirees who want steady income without market risk.
- People who keep large sums idle in a savings account.
- Savers whose older FDs are about to mature.
- Anyone saving for a goal that's about two years away.
Many banks pay senior citizens an extra rate on top. Ask whether that applies here. Don't assume it does.
Interest on an FD is taxable. It's added to your income and taxed as per your slab. So think about your tax too, not only the headline rate.
What to do now
A few quick steps can help you decide without stress:
- Confirm the rate and the date it applies from, using the bank's official channels.
- Read the early withdrawal rule and the penalty.
- Decide how long you won't need this money.
- Compare other banks on our interest rates page.
- Keep deposits within ₹5 lakh per bank for full insurance cover.
The deposit insurance body, DICGC, covers up to ₹5 lakh per depositor per bank. That includes your principal and interest together. If you hold more, you could split it across banks.
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Frequently asked questions
Which Indian Bank FD pays the higher rate?
The 555-day FD pays 6.80%. The 777-day FD pays 6.75%. Both figures come from Moneycontrol.com's report.
Is my money safe in a bank FD?
Deposits are insured up to ₹5 lakh per depositor per bank by DICGC. That covers your principal and interest together.
Can I break an FD early?
Usually yes, but the bank may charge a penalty and cut your rate. Read the terms before you book.
BankCreds analysis
Don't over-read the small gap
The gap between 6.80% and 6.75% is tiny. On ₹1 lakh, it's about ₹50 a year. Pick the tenure that matches when you'll need the money, not the slightly higher rate.
Take a household with ₹5 lakh and a big bill in about 18 months. The 555-day plan fits well and earns roughly ₹51,700 in simple interest. Taxes matter more than the rate gap. In the 30% slab, 6.80% shrinks to about 4.76% after tax.
This is useful news for savers, but it's not a reason to rush. Rates on special tenures change often. Check the date and terms first, then compare two or three banks before you lock your money in.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Moneycontrol.com — originating report https://www.moneycontrol.com/news/business/personal-finance/indian-bank-fd-rates-revised-555-day-deposit-now-offers-6-80-777-day-fd-at-6-75-14058270.html
- DICGC deposit insurance — Bank deposits are insured up to ₹5 lakh per depositor per bank https://www.dicgc.org.in/
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Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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