FD Rates Up, Your Loan Rate Stuck: The ₹18K Gap

Indian Bank raised FD rates by 15 basis points on two special tenures. Good news for savers — but if you have an active loan, your interest rate likely hasn't moved. Here's what to do with any spare cash after your EMIs.

Here's what happened: Indian Bank raised FD interest rates by 15 basis points each on its special 555-day and 777-day deposit tenures, effective October 23, 2026.. The revised rates apply to both new and renewing fixed deposits under these two specific tenures — general tenure rates remain unchanged for now.. This follows a broader trend of select public sector banks tweaking special-tenure FD rates to attract retail deposits amid tightening liquidity..

What you should do: Check if any FD you hold is maturing in the next 30 days — renew it into the 555-day or 777-day tenure at Indian Bank to lock in the higher rate before the window closes.. Call your loan bank's customer care and formally request a loan repricing or reset — if your floating rate loan hasn't been revised down after recent RBI repo cuts, you may be overpaying by ₹500–₹1,500 per month.. Compare Indian Bank's revised FD rates against Post Office Time Deposits and top small finance bank rates using a rate aggregator — a 0.25–0.50% difference on ₹5 lakh is worth ₹1,250–₹2,500 per year extra..

On a floating rate loan, you can request a benchmark reset in writing — banks must comply within 30 days under RBI's external benchmark lending rate (EBLR) framework. Most borrowers never ask.

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