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IndusInd Bank offers FDs under six different categories with competitive fixed deposit rates and flexible tenures. They have a low minimum deposit, offer early withdrawals, and also provide a loan against the FD. Also, the IndusInd Bank FD rates vary between 3.25 to 7% for regular citizens and 3.75% and 7.5% for senior citizens. In this article, we have covered in detail about IndusInd FDs.

IndusInd FD Rates 2021

Following is a table showing the interest rates of IndusInd Bank FDs for different tenures.

IndusInd Bank FD interest rates are higher than their savings account interest rate. Also, the senior citizen fixed deposit interest rates are slightly higher than the regular interest rates. The IndusInd fixed deposit interest rates vary between 3.25% and 7% for regular citizens and 3.75% and 7.5% for senior citizens for a tenure of 7 days to 10 years. Moreover, interest payments are quite flexible, as well. Investors can choose to get paid monthly, quarterly, half-yearly, annually, or directly at maturity. 

The highest IndusInd Bank fixed deposit interest rate for regular citizens is 7% for a tenure of 1 year to 2 years, 365 days. For the same tenure, the senior citizen’s rate is 7.5%. Also, one can estimate their returns from an FD investment by using Scripbox’s FD Calculator

TenureRegular FD Interest RatesSenior Citizen FD Interest Rates
7 days to 14 days3.25%3.75%
15 days to 30 days3.25%3.75%
31 days to 45 days3.75%4.25%
46 days to 60 days4.10%4.60%
61 days to 90 days4.30%4.80%
91 days to 120 days4.50%5.00%
121 days to 180 days5.00%5.50%
181 days to 210 days5.40%5.90%
211 days to 269 days5.60%6.10%
270 days to 364 days6.15%6.65%
61 months to 10 years6.65%7.15%
1 year to 1 year 2 days7.00%7.50%
1 year 3 days to 1 year 2 months7.00%7.50%
1 year 2 months 1 day to 1 year 5 months 29 days7.00%7.50%
1 year 6 months to 1 year 6 months 29 days7.00%7.50%
1 year 7 months to 1 year 364 days7.00%7.50%
2 years to 2 years 5 months 29 days7.00%7.50%
2 years 6 months to 2 years 8 months 29 days7.00%7.50%
2 years 9 months to 2 years 364 days7.00%7.50%
3 years to 60 months 29 days6.75%7.25%
Note: IndusInd Bank revises Fixed Deposits rates periodically

Key Features of IndusInd Bank Fixed Deposit

IndusInd Bank’s Fixed Deposits is a secure investment option that offers the highest interest rates. Following are the key features of IndusInd bank fixed deposit account:

Tenure

The fixed deposit tenure ranges between 7 days to 2 years 364 days. Once the FD investment commences, it is difficult to change the tenure of the FD. However, one can always opt for early withdrawal and invest in a fresh FD with the desired tenure.

Minimum and Maximum Deposit Amount

The minimum amount of investment is INR 10,000. However, there is no cap on the maximum investment, except for tax saving FDs, which has a maximum investment of INR 1,50,000. 

IndusInd First Bank FD Rate

IndusInd Bank FD offers interest rates in the range of 3.25% p.a to 7.00% p.a. Also, one can estimate their returns from an FD investment by using IndusInd FD calculator.

Preferential Interest Rates

The bank offers preferential interest rates (an additional 0.50%) to senior citizen depositors. Also,the interest rates range between 3.75% to 7.50% for senior citizen depositors.

Eligibility

Individuals, including guardians on behalf of minors, sole proprietorships, partnership firms, limited companies can invest in IndusInd FDs. HUFs, societies, trusts, clubs, and associations can also open FD accounts with IndusInd Bank. 

Documents Required

Identity proof (PAN card, Passport, driving license Aadhar card, government ID, senior citizen ID). And, address proof (telephone bill, passport, Aadhar card, bank statement with cheque, electricity bill).

Additional Payments

One cannot invest an additional amount in their FD, once the FD term commences. However, one can invest in a fresh FD with an additional amount.

Tax and TDS

The interest that one earns on IndusInd FD schemes is subject to tax as per the investor’s income tax slab rates. Moreover, suppose the interest income exceeds INR 40,000 per annum (INR 50,000 for senior citizens). In that case, TDS of 10% (or 20% if PAN is not submitted) will be charged under Section 206AA. 

Moreover, to determine if the interest income from IndusInd FD is above or below the TDS threshold limit, one can use a bank FD calculator available online. Also, one can use the Income Tax Calculator to estimate their tax liability. Scripbox’s Income Tax Calculator helps in determining tax liability; it is available online and is also free to use.

Safety

Under the Deposit Insurance Scheme of RBI, DICGC insures all IndusInd bank deposits up to INR 5,00,000.

Premature Withdrawal

The IndusInd bank allows early withdrawals of the FD investments. However, it will charge an interest of 1% less than the contracted interest rate. And these provisions are subject to change as per the RBIs guidelines and the bank’s discretion.

Nomination Facility

Depositors can nominate beneficiaries for their IndusInd Bank FDs.

Auto-Renewal

IndusInd Bank offers an auto-renewal facility for the deposits.

Convenience

Opening and managing IndusInd Bank FD investments is easy and convenient through their online portal.

Loan against FD

The IndusInd bank allows investors to take a loan against their FD investment. Hence, investors can get up to 90% of the deposit amount as a loan. Also, this helps them to meet their liquidity requirements without having to break the deposit. Moreover, the interest that the bank charges will range between 4.25% to 8%, depending on the tenure of the loan.

Investors can take loans such as loans against property (home loan), business loans, education loans, etc., against their FD investment. Also, they can calculate their loan EMI using the loan EMI calculator. The loan EMI calculator also works as a personal loan EMI calculator, home loan calculator, and car loan calculator. They can also use this EMI calculator in multiple scenarios by changing the personal loan interest rate, home loan interest rate, and car loan interest rate.

PAN Card

PAN card isn’t mandatory to invest in IndusInd Bank FD. However, there are certain implications for the same. As per the regulations of Section 206AA, the TDS will be charged at 20%, instead of 10%. IndusInd Bank will not issue any TDS certificate. Moreover, form 15G/15H and all other exemption certificates will be invalid.

Requirement of Savings account

One doesn’t necessarily require an IndusInd Bank savings account to invest in their fixed deposit.

Types of Fixed Deposit Schemes offered by IndusInd Bank

Following are the types of IndusInd Bank fixed deposit schemes:

  • Fixed Deposit
  • Tax Saver Fixed Deposit
  • Sweep In / Sweep Out Deposit
  • Young Saver Deposit
  • Senior Citizen Scheme
  • Deposit Plus

Types of Fixed Deposit Schemes: In Detail

Fixed Deposit

The Fixed (Term) Deposit scheme is a guaranteed return investment option that offers competitive benefits.

  • Minimum Deposit Amount: INR 10,000
  • Minimum Investment Tenure: 7 days
  • Maximum Investment Tenure: 120 months
  • Interest rate: The scheme has competitive interest rates. Also, the scheme offers flexible interest payout options (monthly, quarterly, half-yearly, annually, or at maturity).
  • Furthermore, the scheme provides partial withdrawal, auto-renewal, and nomination facility. Depositors can conveniently book through Indusnet or phone banking.
  • IndusInd Bank Fixed Deposit can be opened by individuals, guardians on behalf of minors. Also, sole proprietorships, HUFs, partnership firms, limited companies, societies, trusts, clubs, and associations can invest in IndusInd FDs.

Tax Saver Fixed Deposit

Investment in Indus Tax Saver FD schemes qualifies for deduction under Section 80C of the Income Tax Act.

  • Minimum Deposit: INR 100
  • Maximum Deposit Amount: INR 1,50,000
  • Lock-in period: 5 years. Furthermore, the Indus Tax Saver scheme doesn’t allow partial or premature withdrawals.
  • Eligibility: Resident Individual, Hindu Undivided Family, Sole Proprietorship, Partnership Firm, and Limited Company can invest in IndusInd FDs. Also, Guardians on behalf of minors, Societies, Clubs, Trusts, and Associations can also invest in IndusInd FDs.

Sweep In / Sweep Out Deposit

IndusInd Bank’s sweep in/sweep out deposit scheme ensures that the funds are safe and liquid for urgent financial needs with zero cost. An automatic transfer of funds goes to term deposit for a specific period under the Sweep In/ Sweep Out scheme. Moreover, this type of deposit scheme is suitable for individuals and corporates who get a continuous float in CA/SB.

  • Minimum Deposit Amount: As per the depositor’s savings/current account
  • Minimum Investment Tenure: 30 days
  • Maximum Investment Tenure: 24 months
  • Furthermore, the scheme allows premature closure of the account and provides a nomination facility.
  • Eligibility: Corporates and individuals who get a continuous float in CA/SB are eligible to open this fixed deposit account.

Young Saver Deposit

The young saver deposit encourages saving among children. It offers a high return on savings. The bank links the savings bank account with the Flexi recurring deposit (opened and operated by the guardian for the minor).

  • Minimum Deposit Amount: INR 11
  • Maximum Deposit Amount: No limit
  • Minimum Investment Tenure: 6 months
  • Maximum Investment Tenure: 120 months
  • Also, the scheme allows premature closure of the deposit account and provides a nomination facility.
  • Eligibility: A guardian can open the young saver deposit account on behalf of the minor.

Senior Citizen Scheme

A focused deposit scheme for senior citizens that offers a 0.50% higher fixed deposit interest rate than other schemes.

  • Minimum Deposit Amount: INR 10,000
  • Minimum Investment Tenure: 7 days
  • Maximum Investment Tenure: 120 months
  • Also, the scheme allows premature closure of the deposit account and provides a nomination facility.

Deposit Plus

The Deposit Plus scheme invests the principal deposit amount in a fixed deposit. In contrast, the interest earned on it is invested in a mutual fund through SIP (Systematic Investment Plan).

  • Minimum Deposit Amount: INR 10,000
  • Minimum Investment Tenure: 7 days
  • Maximum Investment Tenure: 120 months
  • Returns: The scheme offers potentially higher returns as it invests in market-linked instruments.
  • Capital Protection: The scheme ensures capital protection as the principal is invested in an FD scheme. Also, only the interest is invested in a mutual fund.
  • Tax Advantage: The returns from SIPs are tax-free when redeemed after one year. This helps the depositors in saving more.
  • Overdraft: Depositors can avail overdraft facility against this account.
  • Eligibility: All Resident current account and savings account holders, as well as Non-Residents Indians with NRE and NRO Accounts, can open an IndusInd Bank Deposit Plus scheme. Also, the scheme is not available for minors.

Does IndusInd Bank offer Recurring Deposits?

Yes, IndusInd Bank offers recurring deposit schemes. Their recurring deposit scheme has a minimum tenure of 9 months and a maximum tenure of 120 months. Furthermore, the interest rates range between 6.15% to 7.00%. Depositors can open an RD account with IndusInd Bank either by directly visiting the bank branch or online using net banking. Following are the IndusInd Bank RD interest rates for different tenures.

TenureGeneral RatesSenior Citizen Rates
09 Months6.15%6.65%
12 Months7.00%7.50%
15 Months7.00%7.50%
18 Months7.00%7.50%
21 Months7.00%7.50%
24 Months7.00%7.50%
27 Months7.00%7.50%
30 Months7.00%7.50%
33 Months7.00%7.50%
3 years to below 61 month6.75%7.25%
61 month and above6.65%7.15%
Note: IndusInd Bank revises RD interest rates periodically