As I was updating my bank interest rates page, I noticed that Indus Ind Bank has raised its rates, and from what I could see they seem to be offering the best interest rate on a fixed deposit for about a year.
They are offering 9.50% annually for 400 days, which is quite good, and even the 8.50% annual that they are offering for 200 days is pretty good.
I wanted to do this post because I received a few comments asking if it makes sense to invest in the 80CCF infrastructure bonds if you don’t consider the tax benefit.
As you seeÂ – you can get 8.50% annually for a 200 day deposit, so it doesn’t really make sense to invest in the infra bonds if you don’t want the additional tax benefit because their interest rate is about the same or lower.
The other interesting thing that I wanted to bring up is that Indus Ind also offers something called a Flexi Term Deposit.
What this means is that they allow you to treat your deposit as a cluster of Rs.1,000 units, and allow part withdrawal on it. So, if you’re making a fixed deposit of Rs. 10,000 – you can think of it in terms of buying 10 bonds of a face value of Rs. 1,000 each.
If you want to redeem part of that before the maturity, date then you have the option to do so, and they will pay you interest on that part according to the time period you kept the deposit with them.
If you choose to open a fixed deposit under this scheme – be sure to check if they impose any penalty on premature withdrawals because that’s something I didn’t see mentioned anywhere.
Update: Mr. Suresh Jain has emailed me letting me know that Indus Ind Bank charges 1% penalty on premature closures, and re-investments.