It’s worth noting that investing just ₹2 lakh in an Indian Bank FD scheme for 5 years can earn a guaranteed interest of approximately ₹79,500. Government protection, stable returns, and additional interest benefits for senior citizens—this scheme offers a great opportunity for a safe and reliable investment.
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Indian Bank FD scheme: Fixed deposits (FDs) have been considered a safe and money-making investment option for years. Therefore, if you want guaranteed returns on your savings without any risk, Indian Bank’s FD scheme could be a great option for you. This government-owned bank offers FDs to its customers for tenures ranging from 7 days to 10 years. Yes, the bank offers interest rates ranging from 2.80 percent to 7.35 percent. The most important thing is that with an investment of just ₹2 lakh, you can earn a fixed interest of up to ₹79,500.
Indian Bank FD Interest Rates
Indian Bank has set different interest rates for different tenures.
7-day FDs offer 2.80% interest.
The bank’s 444-day special scheme (Ind Secure Product) offers the most attractive interest rates—
For general citizens: 6.60%
For senior citizens: 7.10%
Additionally, the interest rates on 5-year FDs are also quite good—
- For general citizens: 6.00%
- For senior citizens: 6.50%
- For super senior citizens: 6.75%
How much return will a 5-year FD yield?
Yes, if an investor invests ₹200,000 in a 5-year FD scheme at Indian Bank, the general citizen will receive a corpus of approximately ₹269,371 upon maturity, including interest of approximately ₹69,371. Whereas, if a senior citizen invests ₹2 lakh in a 5-year FD with Indian Bank, at an interest rate of 6.5 percent, they will receive a total of ₹276,084 upon maturity, including a fixed interest of approximately ₹76,084. Similarly, if a senior citizen deposits ₹2 lakh in a 5-year FD, they will receive approximately ₹279,500 upon maturity, including a fixed interest of ₹79,500.
If you deposit ₹2 lakh in Indian Bank, the returns will vary depending on your age and the interest rate. Let’s understand this with a simple example:
| Investor Category | interest rate | Maturity Amount (after 5 years) | Total Interest Benefit |
|---|---|---|---|
| ordinary citizens | 6.00% | ₹2,69,371 | ₹69,371 |
| Senior Citizen | 6.50% | ₹2,76,084 | ₹76,084 |
| Super Senior Citizen | 6.75% | ₹2,79,500 | ₹79,500 |
The meaning is simple—the interest benefit increases as you age. If a super senior citizen deposits ₹2 lakh for a period of 5 years, they will receive a fixed interest of approximately ₹79,500, which is fully guaranteed.
Why is an Indian Bank FD beneficial?
1. Government Guarantee: Indian Bank is a government bank, so investing in it is completely safe.
2. Guaranteed Returns: Market fluctuations do not affect this investment.
3. Flexible Tenure: You can choose from 7 days to 10 years.
4. Extra Benefits for Senior Citizens: Benefit from an interest rate of more than 0.50%.
5. Loan Facility: You can also take a loan from the bank against the FD.
Tax and Security
Interest earned on FDs is taxable, but if you are a senior citizen, interest income up to ₹50,000 can be tax-free under Section 80TTB. Additionally, an amount (principal + interest) up to ₹5 lakh is completely protected under the DICGC insurance scheme.
Conclusion
If you want to keep your hard-earned money safe and earn stable returns, Indian Bank’s FD scheme is the best money-making option. You don’t have to worry about market risk and are guaranteed government protection. An investment of just ₹2 lakh can earn you a fixed interest of up to ₹79,500 over 5 years. (Note: This article is for informational purposes only and should not be construed as investment advice. It’s recommended to consult a financial advisor before making investments.)
