If you’re looking to secure and profitably secure your investments with the start of the new year 2026, the Indian Bank FD Scheme could be a promising option. Although many banks have reduced interest rates following the RBI’s 1.25% repo rate cut in 2025, Indian Bank continues to offer attractive returns to its customers. If you open a ₹1 lakh FD (Fixed Deposit) with this public sector bank, you can earn fixed interest of up to ₹22,420.
Indian Bank FD
Public sector giant Indian Bank offers FDs ranging from 7 days to 10 years for its customers. Interest rates start from 2.80% and go up to 7.20%. The highest yield is available in the bank’s 444-day ‘Ind Super’ special FD scheme. This scheme is ideal for those looking to grow their money quickly in a short period of time.
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Under this special 444-day plan, the bank is offering an interest rate of 6.45% to general customers. For senior citizens (above 60 years), this rate increases to 6.95%, and for super senior citizens (above 80 years), this rate reaches a whopping 7.20%. This is one of the best rates available in the market for short-term investments.
Profit on ₹1 lakh investment
If you are looking for a safe investment for the long term, Indian Bank’s 3-year FD scheme proves to be the best option. Suppose you invest ₹100,000 for a period of 3 years, the return analysis would be as follows:
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For an ordinary citizen, the bank offers an interest rate of 6.05%, which will yield a total of ₹1,19,739 at maturity after 3 years, i.e., a net interest gain of ₹19,739. Meanwhile, senior citizens earn an interest rate of 6.55%, which will yield a maturity amount of ₹1,21,520 on a ₹1 lakh deposit. This includes a fixed interest rate of ₹21,520. The biggest benefit is for super senior citizens, who will receive a total of ₹1,22,420 after 3 years at a rate of 6.80%, with only ₹22,420 in fixed interest.
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Why is FD an investment despite the repo rate cut
A significant 1.25% drop in the repo rate in 2025 has made loans cheaper, but FD rates haven’t fallen as much as feared. Fixed deposits remain the most reliable investment option today, as Indian Bank is a government-owned bank, ensuring your money remains completely safe and secure.
Stock market fluctuations don’t affect FD returns, providing you with a guaranteed future. Furthermore, you can also avail of an overdraft or loan against your FD if needed, making it a flexible and reliable financial instrument. You can plan for a period ranging from 7 days to 10 years, depending on your financial needs.