IndusInd Bank is among the leading new generation banks and was founded in 1994. The banking institution has its headquarters in Pune, and is popular for its financial products and services across the nation. For instance, the IndusInd Bank FD is one of the most preferred financial tools and is considered to be an effective means of encouraging savings.
The IndusInd Bank FD rates and additional user-centric benefits make the said financial product more prevalent among individuals. Nonetheless, to maximise the utility of such a scheme, individuals need to be aware of its characteristics and rate of interest in detail.
In this article
Factors that Affect IndusInd Bank FD Rates
Typically, IndusInd Bank FD interest rates tend to depend on several internal and external factors. These following are among the major ones that impact the rate of this savings tool –
- Deposit amount
In general, individuals who deposit a high amount into IndusInd Bank FD online are likely to avail higher rates on it.
- Deposit tenure
Similarly, a longer tenure accompanies higher IndusInd Bank Fixed deposit rates. For instance, an FD holder with deposit tenure of a year will be eligible for an interest rate that is relatively lower than an individual who has an FD account with a tenure of 5 years.
- Customer type
The rate of interest also depends on the customer type and influences the scope of earnings accordingly. For example, IndusInd Bank FD rates for senior citizens are relatively higher when compared to regular FD holders.
- Economic factors
Inflation level, recession, tax rates, monetary policies and other external factors impact FD rates to a significant extent. The response of FD rates to the change in repo rate is probably one of the best examples of how external factors impact the same.
IndusInd Bank FD Interest Rates 2020
This table highlights the prevailing IndusInd Bank fixed deposit rates-
|Investment Tenure between||Bank FD Rates for Senior Citizens (%)||Bank FD Rates for Regular Customers (%)|
|7 days and 14 days||3.75||3.25|
|15 days and 30 days||3.75||3.25|
|31 days and 45 days||4.25||3.75|
|46 days and 60 days||4.6||4.1|
|61 days and 90 days||4.8||4.3|
|91 days and 120 days||5||4.5|
|121 days and 180 days||5.5||5|
|181 days and 210 days||5.9||5.4|
|211 days and 269 days||6.1||5.6|
|270 days to less than a year||6.65||6.15|
|1 year to less than 3 years||7.5||7|
|3 years to less than 5 years 1 month||7.25||6.75|
|5 years 1 month and above||7.15||6.65|
It is also noteworthy that for Indus Tax Saver Scheme, the rate of interest for regular FD holders is 6.75%, and for senior citizens, it is 7.25%.
Eligibility Criteria for IndusInd Bank FD Online
These following entities are qualified to start an IndusInd Bank FD account –
- Resident Indian
- Hindu Undivided Family
- Guardians on behalf of minors
- Partnership Firm
- Sole Proprietorship
- Limited Company
Features of IndusInd Bank Fixed Deposit
IndusInd Bank Fixed Deposit is a potent savings instrument that helps individuals to generate income. Its most prominent features include –
- It can be opened for a tenure ranging between 7 days to 10 years.
- The interest on FD is paid monthly, quarterly, half-yearly, annually or at maturity.
- The FD account allows the auto-renewal facility.
- It enables premature withdrawal and nomination facility.
However, the financial institution may require individuals to meet additional requirements to open an FD account at IndusInd Bank.
How is Interest Calculated on IndusInd Bank FD?
By using this formula, one can compute interest and maturity value on IndusInd Bank FD –
A = P (1 + r/n) ^ nt
As per the formula –
- A is the maturity value
- P equals to principal deposit
- r gives the rate of interest
- n is the compounding frequency
- t equals to the deposit term
Ritu opens an IndusInd Bank FD online with Rs. 3 lakh at the rate of 6.15% for a term of 2 years compounded annually. At maturity, Ritu will receive –
A = P (1 + r/n) ^ nt
= Rs. [300000 (1+6.15/1) ^ 1×730
= Rs. 3,38,948
Therefore, Ritu will receive Rs. 3,38,948 as maturity value and will accrue Rs. 38,948 on her fixed deposit.
TDS on IndusInd Bank Fixed Deposit
Individuals must note that fixed deposit income is subject to 10% TDS if the interest accrued in a year exceeds Rs. 40,000. The exempted threshold of the same for senior citizens is Rs. 50,000.
Nonetheless, individuals can claim tax exemptions on their fixed deposit income by declaring that tax on total income is zero. The regular FD holders can declare the same by submitting Form 15G; while, the senior citizens will be required to submit Form 15H.
Besides finding out about the IndusInd Bank FD rates, individuals must also check out other charges like penalty fees to make an informed decision. They should also check out the terms of service in detail to make the most of this savings instrument.