Indian Bank’s innovative 555-day Fixed Deposit scheme offers investors an exceptional middle ground between short-term and long-term investments. This specially designed tenure provides attractive returns while maintaining reasonable liquidity for medium-term financial planning.
With competitive interest rates and the security of a trusted public sector bank, this scheme appeals to conservative investors seeking guaranteed returns without extended fund lock-in periods.
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Competitive Interest Rate Structure
The scheme offers 7.05% per annum for general customers, significantly outperforming regular savings accounts. Senior citizens receive preferential treatment with 7.55% interest rate—a full 0.50% additional benefit.
These rates remain fixed throughout the 555-day tenure, protecting investors from interest rate fluctuations. The government-backed security of Indian Bank adds an extra layer of confidence for risk-averse investors.
Investment Returns at a Glance
| Investment Amount | General Returns | Senior Citizen Returns |
|---|---|---|
| ₹1,00,000 | ₹10,996 | ₹11,763 |
| ₹5,00,000 | ₹54,980 | ₹58,815 |
| ₹10,00,000 | ₹1,09,960 | ₹1,17,630 |
Returns calculated for 555 days with quarterly compounding
The difference between general and senior citizen returns demonstrates the scheme’s special consideration for retirees seeking stable income sources.
Key Features and Benefits
The minimum deposit requirement of just ₹1,000 makes this scheme accessible to all economic segments. There’s no maximum limit, allowing high-net-worth individuals to park substantial amounts securely.
Flexible interest payout options include monthly, quarterly, or cumulative modes. Monthly payouts suit retirees needing regular income, while cumulative options maximize returns through compounding benefits.
The loan facility against up to 90% of FD value provides emergency liquidity without breaking your deposit. This feature maintains your earning potential while addressing urgent financial needs.
Strategic 555-Day Advantage
| Feature | Details |
|---|---|
| Tenure | 555 days (~18 months) |
| Interest Rate (General) | 7.05% p.a. |
| Interest Rate (Senior) | 7.55% p.a. |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | No limit |
| Loan Facility | Up to 90% |
The unique 555-day period positions this FD perfectly between traditional one-year and two-year deposits. This tenure allows faster reassessment of investment strategies if market conditions change.
Simple Account Opening Process
Opening an account is straightforward through Indian Bank’s net banking portal or any branch location. The digital process takes just minutes with basic KYC documents—Aadhaar, PAN card, and address proof.
Existing customers can invest instantly through internet or mobile banking. New customers receive personalized assistance at branches to complete documentation and understand scheme benefits.
Tax Considerations
Interest earned is taxable per your income slab. TDS at 10% applies when annual interest exceeds ₹40,000 for general customers and ₹50,000 for senior citizens.
Submit Form 15G (below 60 years) or Form 15H (senior citizens) if your total income falls below taxable limits to avoid TDS deduction. This ensures you receive full interest without claiming refunds later.
Ideal Investor Profile
This scheme suits conservative investors prioritizing capital safety over high returns. It’s perfect for parking funds needed for specific future expenses like weddings, education fees, or home down payments.
Retirees benefit from the senior citizen rate and regular interest payout options. Young professionals building emergency funds appreciate the balance between returns and accessibility.
Business owners with temporary surplus cash can earn competitive returns while maintaining reasonable access to funds within 18 months.
Premature Withdrawal Terms
While meant for full tenure, premature withdrawal is permitted with penalties of 0.50-1.00% depending on holding period. Senior citizens facing medical emergencies may receive penalty waivers—check with your branch.
Partial withdrawal options minimize penalty impact by preserving most of your deposit’s earning potential while accessing required amounts.
Making Your Decision
Indian Bank’s 555-day FD scheme offers an excellent balance of competitive returns, government-backed security, and strategic tenure positioning. With rates up to 7.55% for senior citizens, it significantly outperforms savings accounts.
The unique 555-day period provides flexibility uncommon in traditional FDs while delivering guaranteed, predictable returns. Visit Indian Bank today to secure your medium-term financial goals with this attractive scheme.
Frequently Asked Questions
Q:- Can I open a joint FD account under this scheme?
A = Yes, joint accounts are allowed with either/survivor or former/survivor nomination options.
Q:- Is the interest rate fixed throughout the tenure?
A = Yes, the rate applicable at deposit time remains fixed for the entire 555-day period.
Q:- Can NRIs invest in this scheme?
A = Yes, NRIs can invest through NRO/NRE accounts with applicable rates and tax regulations.
