Fixed deposits are one of the most risk-free, safest, and guaranteed returns schemes offered by the banks. The Mumbai-based IndusInd Bank is offering amazing benefits to depositors. A senior citizen here can earn 7% interest on their FDs up to five-year tenure, while the general category will be able to earn a 6.50% rate. These are higher FD rates compared to major banks.
On FDs below ₹2 crore, IndusInd offers a 7% interest rate to senior citizens on tenures starting from above 2 years to below 61 months (5 years 1 month). For the same maturity period, the rate is 6.50% for the general category.
The FDs booked for these tenures are qualified as ‘‘Green Deposits’ by IndusInd.
On its website, for Green Deposits, IndusInd said, “The Bank, will use the proceeds from these deposits to finance a wide array of sectors falling under the United Nations Sustainable Development Goals (SDGs) themes including energy efficiency, renewable energy, green transport, sustainable food, agriculture, forestry, waste management, and greenhouse gas reduction.”
“A green Deposit Certificate shall be issued to the Fixed Deposit Holder along with FD Advice,” said IndusInd.
IndusInd gives a 6.50% rate to senior citizens on FDs 61 months and above. While its Indus Tax Saver scheme which has a maturity period of 5 years, has a 7% interest rate for senior citizens and a 6.50% rate for others on their FDs.
It needs to be noted that, income more than tax exempted limits earned through interest on FD is tax-deductible. In the absence of a PAN card, TDS will be deducted at 20%.
There is a tax benefit of ₹1.5 lakh on FDs under section 80C of the Income Tax Act.
Meanwhile, IndusInd gives a 6.50% rate to senior citizens and a 6% rate to others on FDs below ₹2 crore maturing between 1 year to below 2 years.
Below 1-year tenure, the FD rates vary from 3.25% to 6% for senior citizens, while the rate ranges from 2.75% to 5.50% for others.
Further, IndusInd Bank mentions on its website that an additional interest rate of 0.50% over and above the card rates is applicable for Term Deposits of Senior citizens (Age 60 years & above) for value below ₹2 crore. (Not applicable for NRO/NRE deposits). However, in case the senior citizen opts to place deposits of value greater than or equal to ₹2 crore, the benefit of additional interest shall not be available.