After Reserve Bank of India (RBI) cut its repo rate for the third time in a row, banks have started to cut their interest rates on term deposits. After HDFC Bank and ICICI Bank, Indian Bank has also cut its interest rates on fixed deposits across tenures.
It is noteworthy to mention that since February, RBI has cut the benchmark rate by 100 basis points from 6.5 percent to 5.5 percent. The ripple effect was seen across banks after most lenders followed suit by reducing their lending rates as well as interest rates on fixed deposits (FDs).
Recently, Indian Bank cut its repo rate by upto 50 basis points across tenures. The latest rates came into force on June 9, 2025.
FD interest rates
On a tenure of 1 to 2 years, the government bank will now offer 6.6 percent per annum instead of 7.1 percent earlier. On a tenure of 444 days, the state lender will give 6.9 percent interest instead of 7.15 percent earlier.
On a tenure of 2-3 years, the bank will now offer 6.40 percent instead of 6.7 percent earlier. The 5-year fixed deposits will fetch 6 percent interest instead of 6.25 percent earlier. And fixed deposits with tenure of more than five years will offer 6 percent to depositors instead of 6.10 percent earlier.
Indian Bank’s IND secure: This scheme was introduced on May 8 this year wherein investors can invest anywhere between ₹1000 to less than ₹3 crore with callable options for a maturity tenor of 444 days. The scheme is valid till September 30, 2025.
As mentioned above, it now offers interest up to 6.90 percent (instead of 7.15 percent earlier) to public and 7.40 percent to senior citizens and 7.65 percent to super senior citizens.
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