ICICI Bank and Indian Bank Hike FD Rates: Senior Citizens Can Earn Up to 7.30%

ICICI Bank and Indian Bank Revise FD Interest Rates

ICICI Bank and Indian Bank have increased interest rates on selected fixed deposits, giving savers an opportunity to earn higher returns on eligible deposits.

The revised rates came into effect on October 23, 2026, and apply to specified deposit tenures for amounts below ₹3 crore. While ICICI Bank increased rates by 10 basis points on selected FDs, Indian Bank raised rates by 15 basis points on two special-tenure schemes.

The highest rate highlighted in the latest revision is 7.30% per annum for senior citizens investing in Indian Bank’s 555-day Ind Grow FD. (Economic Times)

ICICI Bank FD Interest Rates: What Has Changed?

ICICI Bank has increased interest rates by 10 basis points on selected fixed-deposit tenures.

The key changes reported are:

FD tenure or schemeEarlier rate for general citizensRevised rate for general citizens2 years and 1 day to 3 years6.45%6.55%3 years and 1 day to 5 years6.50%6.60%5-year Tax Saver FD6.50%6.60%5 years and 1 day to 10 years6.50%6.60%

According to the report, ICICI Bank's maximum rate for general citizens has increased to 6.60%, while eligible senior citizens can earn up to 7.20% per annum. The rate available depends on the deposit tenure and applicable conditions. (Economic Times)

Indian Bank Offers Up to 7.30% on Its 555-Day FD

Indian Bank has increased interest rates by 15 basis points on two special fixed-deposit schemes: Ind Grow, with a tenure of 555 days, and Ind Prosper, with a tenure of 777 days.

The revised rates are as follows:

Special FD schemeTenureGeneral citizensSenior citizensSuper senior citizensInd Grow555 days6.80%7.30%7.55%Ind Prosper777 days6.75%7.25%7.50%

The Ind Grow rate for general customers increased from 6.65% to 6.80%, while the Ind Prosper rate rose from 6.60% to 6.75%.

Indian Bank generally provides an additional interest benefit to senior citizens aged 60 and above. Super senior citizens aged 80 and above are eligible for a higher additional benefit under the bank's applicable rules. (Indian Bank)

How Much More Can Senior Citizens Earn?

The higher interest rates can make a difference to savers who prefer fixed returns over market-linked investments.

For example, a ₹5 lakh deposit earning 7.30% annually would generate approximately ₹36,500 in interest over one year at a simple-interest illustration. The actual interest earned on a 555-day FD will depend on the bank's calculation method, compounding frequency and deposit terms.

The 7.30% rate is the annual rate, not the total return for the entire 555-day period. Investors should use the bank's FD calculator or confirm the maturity amount with the branch before opening a deposit.

Which Bank Should FD Investors Choose?

The choice between ICICI Bank and Indian Bank depends on the investor's preferred tenure, eligibility for senior-citizen rates, interest payout requirements and access to funds.

• For a special 555-day deposit: Indian Bank's Ind Grow FD offers 7.30% to senior citizens and 7.55% to super senior citizens.

• For a 777-day deposit: Indian Bank's Ind Prosper FD offers 7.25% to senior citizens and 7.50% to super senior citizens.

• For other tenures: ICICI Bank's revised rates may be suitable for depositors seeking a different maturity period or banking arrangement.

Investors should compare the effective rates for the exact tenure rather than selecting an FD solely because it advertises the highest rate.

Taxation and Premature Withdrawal Rules

Interest earned on fixed deposits is generally taxable according to the depositor's applicable income-tax rules. Tax deducted at source (TDS) may apply when interest crosses the prescribed threshold.

Depositors should also check whether premature withdrawal is permitted and whether a penalty would apply if they need the money before maturity. Breaking an FD early may reduce the interest received.

Before investing, customers should confirm the latest rates, deposit eligibility, payout options and withdrawal conditions directly with the relevant bank.

Key Takeaways

• ICICI Bank and Indian Bank revised selected FD rates effective October 23, 2026.

• ICICI Bank increased rates by 10 basis points on selected tenures.

• Indian Bank raised rates by 15 basis points on its 555-day and 777-day special FDs.

• Senior citizens can earn up to 7.30% on Indian Bank's 555-day Ind Grow FD.

• Super senior citizens can earn up to 7.55% on the same deposit.

• FD interest is generally taxable, and premature withdrawal may affect returns.