Indian Bank has introduced a brand-new 555-day Fixed Deposit scheme, popularly known as “IND GREEN”, designed for investors looking for a secure and reliable savings option with guaranteed returns. Starting from August 1, 2025, this special FD offers higher-than-usual interest rates, making it an attractive choice for both regular investors and senior citizens.
What is the 555-Day FD Scheme?
The Indian Bank 555-Day FD Scheme (IND GREEN) is a special fixed deposit with a tenure of 555 days—equivalent to 1 year, 6 months, and 10 days. Once you lock in your money, the interest rate remains fixed for the entire period, protecting your returns from any future rate fluctuations.
- Minimum Investment: ₹1,000
- Maximum Investment: Less than ₹3 crore
- Tenure: 555 days (special scheme)
- Premature Withdrawal: Allowed, but with a penalty of 1% on the applicable interest rate
This makes it a perfect choice for conservative investors who prefer safety, stability, and assured income over market-linked risks.
Interest Rates for the 555-Day FD (w.e.f. Aug 1, 2025)
| Category | Rate of Interest (% p.a) |
|---|---|
| General Public | 6.70% |
| Senior Citizens | 7.20% |
| Super Senior Citizens (80+) | 7.45% |
With these rates, senior citizens can enjoy a much better return compared to traditional savings accounts, along with the safety of a government-backed bank.
Key Features of the IND GREEN FD
- Guaranteed Returns – Secure and predictable earnings with no market risks.
- Flexible Payout Options – Choose between monthly, quarterly, half-yearly, or cumulative interest payouts.
- Nomination Facility – Investors can nominate a family member to receive the funds in case of unforeseen circumstances.
- Multiple Ways to Open FD – Open through internet banking, mobile banking, or branch visits.
- DICGC Coverage – Deposits are insured up to ₹5 lakh, adding an extra layer of security.
Tax Implications
- Interest earned is taxable as per your income tax slab.
- TDS applies if interest exceeds ₹50,000 for general customers and ₹1,00,000 for senior citizens.
- To avoid TDS, depositors can submit Form 15G or 15H (if eligible).
Who Can Invest?
The Indian Bank 555-Day FD scheme is ideal for:
- Working professionals looking for safe short-term returns.
- Retirees and senior citizens seeking steady income with higher interest.
- Business owners with surplus funds looking for secure parking.
- Conservative investors who don’t want to risk money in volatile markets.
Comparison With Other Investment Options
| Investment Type | Returns Before Tax | Returns After Tax | Guaranteed? | Risk Level |
|---|---|---|---|---|
| Indian Bank FD (555 Days) | 6.7% – 7.45% | 4.8% – 5.5% | Yes | Low Risk |
| Guaranteed Return Plans | 6.9% | 6.9% (Tax-Free) | Yes | No Risk |
| Debt Mutual Funds | ~8% | ~5.5% | No | Moderate to High |
FAQs on Indian Bank 555-Day FD
Q1. What is the minimum deposit required?
The minimum investment is just ₹1,000.
Q2. Can I withdraw before 555 days?
Yes, but a 1% penalty will be charged on the applicable interest rate.
Q3. What makes this FD special?
It’s a limited-period FD with higher-than-normal rates and a unique tenure of 555 days.
Q4. Do senior citizens get extra benefits?
Yes, senior citizens get an additional 0.50% interest, and super senior citizens (80+) get even higher.
Q5. Is the FD completely safe?
Yes, Indian Bank is government-owned, and deposits are insured up to ₹5 lakh under DICGC.
Indian Bank’s 555-Day FD Scheme (IND GREEN) is a safe and rewarding investment opportunity for those who want better-than-average returns without market risk. With interest rates up to 7.45%, flexible payout options, and government-backed safety, this FD is a smart choice for both young investors and retirees looking for stability.
If you are planning short-term savings with guaranteed returns, this scheme is definitely worth considering.