Indian bank fixed deposit interest rates. IMPORTANT: The rate of interest on domestic term deposit is also applicable to IB Tax Saver Scheme and Capital. Interest calculated on a daily basis as above would be credited on a quarterly basis in the month of June, September, December and March every year. Premature Withdrawal of Indian Bank Fixed Deposits Indian Bank levies a 1% interest rate from the contracted rate for deposits above 5 lakh. The interest offered by the bank on these deposits is around 6.30% Long-term Deposits: These deposits have their tenure ranging from 5 years to 10 years and offer an interest rate of 6.25%.
