During the demonetization period many people faced immediate cash shortages. The government and the Reserve Bank of India took several measures to improve liquidity, including encouraging banks to reduce interest rates on fixed deposits (FDs) and recurring deposits so more cash flowed into the market.
Fixed Deposit IndusInd
At one point FD rates dropped to as low as 4.25%—SBI’s post-November 24, 2016 offerings included such low rates for a few months. Rates recovered by early 2017 and industry averages returned to around 7%.
Fixed Deposits at 7.15% for accounts opened through March 2017
In early February I received an email from IndusInd Bank announcing a limited-time FD offer: open an FD before 31 March 2017 and receive the following benefits:
- Interest rate of 7.15% for eligible deposits
- Applicable tenure: 12 to 14 months
- No penal interest on premature withdrawal for this offer
- A complimentary wristwatch for opening the FD
Key points for prospective customers:
- 7.15% is among the higher FD rates offered in the market at that time.
- The 7.15% rate applies only to tenures between 12 and 14 months.
- Tenures shorter than 12 months or longer than 14 months are priced at the prevailing rates, which will be lower than 7.15%.
- The complimentary watch is provided only for the first FD opened under this campaign.
- The minimum FD amount to qualify for the gift is ₹50,000.
- To be eligible for the watch, the FD must be opened through the specific advertisement page on IndusInd’s website or via the link in the promotional email.
- If you already hold an IndusInd account and open the FD via the bank’s netbanking portal, you will not receive the watch.
- The campaign requires that the deposit be funded by transferring money from another bank’s netbanking (not from an existing IndusInd account). Once this condition and the others are met, the bank sends a coupon code to redeem the wristwatch.
I opened my FD using the email link. After about two to three weeks I received confirmation that my FD qualified for the gift, along with a coupon code to redeem the watch. I have claimed the gift, though the watch has not arrived yet; I expect it soon.
While the watch itself isn’t a major incentive, getting a free gift is a pleasant bonus. More importantly, the offer combines one of the more attractive FD rates available at the time with no penalty for premature closure under the offer terms (IndusInd normally charges a 1% penalty for early withdrawal). In short: a competitive rate, stronger bank relationship, and a small bonus gift.
If you’re not already an IndusInd customer you may want to weigh the effort of opening an account and meeting the funding requirement from another bank. If you are an existing customer, taking advantage of the rate is straightforward and compelling.
Update:
Regarding the watch: since it was complimentary I didn’t expect premium quality. The watch is modest but serviceable and features IndusInd branding on the dial, which I find appealing. Overall, the package—good interest rates plus a free watch—felt like a worthwhile offering.
We welcome your thoughts on this IndusInd Bank offer. Do you find these FD rates competitive compared with other banks? Beyond rates, factors like product features and customer benefits can influence whether keeping an account with IndusInd is attractive—one example being the bank’s Signature Debit Card, which has historically offered lower markup fees on foreign transactions.