Indian Bank IND GROW 555-Day FD 2026: Rate, TDS and DICGC

Summary: Indian Bank’s official IND GROW page and retail deposit-rate schedule, checked on 19 October 2026, list a callable 555-day fixed or money multiplier deposit for amounts from ₹1,000 to ₹2,99,99,999. The rate schedule is effective 4 August 2026 and shows 6.65% per annum for the public, 7.15% for an eligible senior citizen and 7.40% for an eligible super senior citizen. The additional rates are not extended to NRE or NRO deposits. Interest may be paid monthly, quarterly or on maturity, and premature closure is permitted under the bank’s normal term-deposit rules; the exact rate adjustment or penalty should be confirmed at booking because the product page does not state a universal percentage. The page also provides for loan or overdraft, nomination and renewal mechanics. Interest is taxable and tax-deduction rules operate separately from the final tax liability. As an Indian Bank deposit, eligible balances are covered by DICGC only up to the statutory aggregate of ₹5 lakh for principal and interest per depositor per bank in the same capacity and right. This is a factual product guide, not a rate ranking or recommendation.

Indian Bank IND GROW 555-Day Deposit: Product Terms

The scheme was introduced on 5 June 2026 and appears in the bank’s rate schedule for callable fixed deposits and money multiplier deposits below ₹3 crore. The schedule checked is effective 4 August 2026. A rate displayed in an article is a point-in-time fact, not a promise for future bookings or renewals. The depositor should confirm the rate on the transaction screen or branch advice and retain the deposit receipt showing the contracted rate and maturity.

Who Can Open an IND GROW Fixed Deposit and Deposit Limits

The official product page allows individuals singly or jointly, minors through guardians, sole proprietorships, partnerships, companies, associations and other eligible entities, subject to KYC, constitution documents and the bank’s acceptance. The minimum is ₹1,000, and the maximum is one rupee below ₹3 crore. A deposit of ₹3 crore or more falls into the bank’s bulk-deposit framework and is not eligible for the retail IND GROW terms shown here.

The customer can choose a conventional fixed deposit or a money multiplier deposit, subject to account-opening channels and bank rules. In a periodic-interest option, cash is paid at the selected interval and the maturity amount differs from a cumulative option. A monthly payout may use a discounted monthly value under banking practice. The exact schedule printed by the bank is controlling; a simple annual-rate calculation is only an illustration.

IND GROW Interest Rates for Senior and Super-Senior Citizens

Indian Bank’s rate schedule shows a 0.50 percentage-point addition for eligible senior citizens and a 0.75 percentage-point addition for eligible super senior citizens for this special bucket, producing 7.15% and 7.40% respectively against the 6.65% public rate. Eligibility depends on age, residency, ownership and the bank’s terms. The product page specifically indicates that these additional rates are not applicable to NRE and NRO deposits.

Joint holders should not assume that the oldest holder’s age automatically produces the benefit. The bank’s rules on first holder, beneficial ownership and supporting proof apply. Age and residency documents should be validated before booking. If a depositor changes status during the tenure, the deposit receipt and applicable rules should be reviewed rather than altering the rate informally.

IND GROW Interest Earnings: Illustrative Calculation

*The illustration uses principal × annual rate × 555/365 to compare headline rates. It is not an official maturity quote and does not reflect the selected compounding or payout method, rounding, premature closure or tax deduction. The customer should rely on the bank-generated maturity amount and deposit advice.

IND GROW Premature Withdrawal and Interest Penalty

IND GROW is callable, so premature closure is permitted under the bank’s normal term-deposit rules. Callable does not mean that the 555-day headline rate is retained. Banks ordinarily recalculate interest for the period actually completed and may apply the penalty or reduction specified in their current rules. The official IND GROW page does not state one universal penalty percentage, so an article should not invent one. Obtain the premature-closure clause applicable on the booking date.

The product page also states that a loan or overdraft can be available against the deposit. This can provide liquidity without closing the receipt, but it is a secured borrowing with interest, margin and documentation. Compare the borrowing cost and duration with the closure impact. Neither option should be described as free liquidity.

IND GROW Maturity and Renewal Options

The product page indicates automatic renewal under the same scheme if it remains available; if it is discontinued, the deposit is renewed for exactly one year. The rate at renewal follows the applicable rate on the renewal date, not the original 6.65%, 7.15% or 7.40%. Customers should record whether they want renewal or credit to an operative account and review the instruction before maturity.

Nomination is mandatory for personal accounts according to the product page. Where the customer seeks not to nominate, the bank’s documentation and applicable rules should be checked rather than leaving the field incomplete. Nomination supports settlement but does not by itself decide beneficial succession against all legal claims. Joint operation and survivor instructions should also be recorded accurately.

Income-Tax and TDS on IND GROW Deposit Interest

Interest on a bank term deposit is generally taxable according to the depositor’s status and the applicable income-tax law. Tax deduction at source is only a collection mechanism; an absence of TDS does not make interest exempt. The depositor should aggregate relevant interest credited or paid by the bank for the year, reconcile the annual information statement and tax-credit record, and report income using the required method.

The official Indian Bank page states that TDS applies and refers to Form 121 under the new rules for eligible non-deduction declarations. A declaration should be submitted only when the statutory conditions are actually satisfied. Senior status alone does not prove nil tax liability. Non-resident deposits follow separate withholding rules and do not receive the resident senior or super-senior interest addition stated for this product.

Tax law transitioned from the Income-tax Act, 1961 to the Income-tax Act, 2025 from 1 April 2026, with savings for earlier periods. Depositors should use current Tax Year 2026-27 provisions, forms and portal instructions rather than copying old section numbers or declarations from prior-year advice. The final tax depends on total income, regime choice, deductions and residential status.

DICGC Deposit Insurance Limit for Indian Bank Customers

Indian Bank is a bank within the deposit-insurance framework. DICGC protects eligible principal and interest together up to ₹5 lakh per depositor per bank in the same capacity and same right. The limit is aggregated across eligible savings, current, recurring and fixed deposits at all branches of the same bank. It is not ₹5 lakh per receipt, per branch or per banking channel.

Accounts held in genuinely different capacities or rights can be treated separately under DICGC rules, and joint accounts depend on the names and order of holders. The rules should be applied to actual legal ownership, not artificial splitting. Amounts above the insured aggregate remain an exposure to the bank. DICGC cover is not a guarantee that every contractual or documentation dispute is insured, and it does not remove the need for correct KYC, nomination and ownership records.

IND GROW Deposit Booking and Document Checklist

• Confirm that IND GROW remains open and verify the live 555-day rate on the booking date.
• Check that the amount is between ₹1,000 and ₹2,99,99,999 and identify the fixed or money multiplier option.
• Document eligibility for senior or super-senior benefit; do not apply it to NRE or NRO deposits.
• Choose monthly, quarterly or maturity payout after reviewing the official cash-flow schedule.
• Obtain the current premature-closure rule and the terms of any loan or overdraft.
• Record maturity credit or renewal instructions and understand the one-year fallback if the scheme closes.
• Complete KYC, ownership, operating mandate and nomination documentation.
• Estimate taxable interest, current declaration eligibility and expected tax deduction.
• Aggregate all eligible balances with Indian Bank when evaluating the ₹5 lakh DICGC limit.

IND GROW Interest Rate, Liquidity and Bank Exposure

IND GROW provides a stated contractual rate for a defined 555-day tenor, subject to the deposit contract. The main practical risks are liquidity cost on early closure, reinvestment at a different maturity rate, tax drag, incorrect renewal instructions and concentration above the DICGC limit. These factors vary by depositor. A factual article should explain them without ranking the deposit, predicting rates or suggesting that the highest headline rate is automatically suitable.

Before placement, the customer should match the maturity date with a known cash need and keep emergency liquidity outside any amount that cannot tolerate a reduced return on early closure. The deposit advice, rate schedule, nomination, tax declaration and maturity instruction should be stored together. Any inconsistency should be corrected promptly through the bank’s official channel.

Frequently Asked Questions

What is the verified IND GROW rate?

Indian Bank’s schedule effective 4 August 2026 lists 6.65% for the public on the 555-day retail callable deposit below ₹3 crore.

What are the senior and super-senior rates?

The schedule lists 7.15% for eligible senior citizens and 7.40% for eligible super senior citizens, subject to bank rules.

Do NRE or NRO deposits receive the additional senior rate?

No. The product page states that the additional senior and super-senior rates are not applicable to NRE and NRO deposits.

What is the minimum and maximum amount?

The official range is ₹1,000 to ₹2,99,99,999. Deposits of ₹3 crore or more are not eligible for these retail terms.

Is premature closure allowed?

Yes, under normal term-deposit rules. Confirm the actual-period rate and any applicable penalty before booking.

Will the deposit renew for another 555 days?

It can renew under the same scheme if available; if the scheme is discontinued, the product page states an exact one-year renewal.

How much is insured by DICGC?

Eligible principal and interest are aggregated and protected up to ₹5 lakh per depositor per bank in the same capacity and same right.

Does no TDS mean the interest is tax-free?

No. TDS is a collection mechanism; taxable interest must still be reported under the applicable law.

Key Takeaways

• IND GROW is a 555-day callable retail term deposit from ₹1,000 to below ₹3 crore.
• Rates checked for the schedule effective 4 August 2026 are 6.65%, 7.15% and 7.40% for the public, eligible seniors and eligible super seniors.
• Additional senior rates do not apply to NRE or NRO deposits.
• Confirm premature-closure, payout, renewal, loan and tax terms at booking.
• DICGC protection is capped at an aggregate ₹5 lakh per depositor per bank in the same capacity and right.

Source Links

• Indian Bank — IND GROW Product Page — https://indianbank.bank.in/en/ind-grow
• Indian Bank — Deposit Rates Effective 4 August 2026 — https://indianbank.bank.in/en/deposit-rates
• Indian Bank — Term Deposits Overview — https://indianbank.bank.in/en/term-deposits
• Indian Bank — Term Deposit Terms and Conditions — https://indianbank.bank.in/en/terms-and-conditions-term-deposit-account
• DICGC — Guide to Deposit Insurance — https://www.dicgc.org.in/guide-to-deposit-insurance
• Income Tax Department — Income-tax Act, 2025 as amended — https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf

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Disclaimer: This article is for general educational and editorial purposes and is based on official material checked on 19 October 2026. Rates, availability, eligibility, tax treatment, premature-closure terms, renewal and deposit insurance depend on the booking date, customer status, current bank rules and applicable law. It is not a recommendation, ranking or prediction. Readers should verify live terms and obtain professional advice where needed. TaxGuru accepts no responsibility for any loss, liability or consequence arising from reliance on this article. A fixed-deposit product name, tenure or advertised rate does not establish that the deposit is available to every applicant on the date of booking. Confirm Indian Bank’s current product circular, deposit acceptance conditions, minimum and maximum amounts, resident status requirements, age-based rate eligibility, effective dates and whether the quoted interest is simple or compounded. Illustrations are not guaranteed maturity values unless the bank confirms the precise principal, interest convention, compounding and booking date. Early withdrawal may reduce returns or attract a penalty; renewal may occur on different terms and at a different rate. Deposit insurance must be understood at the depositor-and-bank level, subject to the applicable DICGC limit and aggregation rules; the scheme should not be described as eliminating all risk. TDS and final income-tax liability are distinct and may depend on the depositor’s status, other interest income and current law. Verify nomination, joint-holder instructions, maturity credit, lien, overdraft and auto-renewal terms directly with the bank. Readers with liquidity needs, large deposits, senior-citizen eligibility questions or complex tax circumstances should consult an independent qualified adviser. TaxGuru is not a bank, distributor or deposit guarantor and accepts no responsibility for rate changes, product withdrawal, bank actions, tax consequences, lost interest or investment decisions.