For deposits of 15-29 days, the rate has been hiked to 4.50 per cent from 4 per cent, while for 30-45 days the interest rate has been hiked to 4.75 per cent (4 per cent), a bank release said.

The rates for 46 to 90 days has been increased to 5 per cent (4.5 per cent), for 91 to 179 days to 5.25 per cent (4.5 per cent) and for 180 days to 364 days to 5.60 per cent (4.75 per cent), the Chennai-based bank said.

For one year to less than five years, the rates will be 5.75 per cent and for 5 years and above it will be 6 per cent from Monday.

Earlier, the interest rate for 1-2 year deposits was 5.25 per cent and for two years and above, it was 5.5 per cent, the statement said. "Now, there will be only one rate for 1-5 year deposits," an Indian Bank official said.

Senior citizens will, however, get 1 per cent additional rate for deposits under fixed and reinvestment plan schemes for the period 1-5 years at 6.75 per cent.

For less than Rs 15 lakh category of deposit, the bank has introduced a new slab for acceptance of deposit of Rs 1 lakh and above at the rate of 3.5 per cent per annum for 7-14 days, it said.