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Home / Glossary / FD Interest Rates / Indian Overseas Bank FD Interest Rates

Introduction

Fixed Deposits (FDs) are a favored investment option in India due to their guaranteed returns and safety. Indian Overseas Bank (IOB), a major public sector bank, offers a range of Fixed Deposit schemes with attractive interest rates tailored to meet the diverse needs of its customers. This guide provides detailed insights into Indian Overseas Bank FD interest rates, including current rates, benefits, special schemes, and more.

What are Indian Overseas Bank FD Interest Rates?

Indian Overseas Bank (IOB) offers varying interest rates on Fixed Deposits (FDs) depending on the tenure and the depositor’s category (general or senior citizen).

Below are the interest rates for IOB Fixed Deposits:

Interest Rates for the General Public:

TenureInterest Rate (per annum)
7 days to 14 days4.00%
15 days to 29 days4.00%
30 days to 45 days4.25%
46 days to 60 days4.25%
61 days to 90 days4.25%
91 days to 120 days4.50%
121 days to 179 days4.50%
180 days to 269 days4.95%
270 days to less than 1 year5.35%
1 year to < 2 years (Except 444 days)6.80%
444 days7.10%
2 years to less than 3 years6.80%
3 years to 10 years6.50%

Interest Rates for Senior Citizens:

Indian Overseas Bank offers special interest rates for senior citizens (aged 60 years and above) on fixed deposits. Senior citizens typically receive an additional 0.50% interest rate over and above the regular rates. It makes FDs an attractive investment option for retirees seeking stable and enhanced returns.

Here are the current interest rates for senior citizens:

TenureInterest Rate (per annum)
7 days to 14 days4.50%
15 days to 29 days4.50%
30 days to 45 days4.75%
46 days to 60 days4.75%
61 days to 90 days4.75%
91 days to 120 days5.00%
121 days to 179 days5.00%
180 days to 269 days5.45%
270 days to less than 1 year5.85%
1 year to < 2 years (Except 444 days)7.20%
444 days7.60%
2 years to less than 3 years7.30%
3 years to 10 years7.00%

These rates are indicative and can change over time, so it’s advisable to check the latest rates directly with Indian Overseas Bank or visit their official website for the most current information.

You may also want to know the Indian Bank FD Interest Rate

Benefits of Indian Overseas Bank Fixed Deposits

  1. Guaranteed Returns: FDs provide a fixed interest rate, ensuring guaranteed returns on your investment.
  2. Safety: Indian Overseas Bank, as a reputed public sector bank, offers high security for your deposits.
  3. Flexible Tenures: Choose from a variety of tenures ranging from 7 days to 10 years, depending on your financial goals.
  4. Premature Withdrawal: Indian Overseas Bank allows premature withdrawal of FD amounts, subject to certain terms and conditions.
  5. Loan Against FD: Avail of a loan against your FD up to 90% of the deposit amount, providing liquidity in times of need.
  6. Auto-Renewal Facility: FDs can be set to auto-renew on maturity, ensuring your investment continues to grow without any intervention.

Indian Overseas Bank Tax Saver FD Interest Rate

Indian Overseas Bank offers a Tax Saver FD scheme that allows individuals to save on taxes under Section 80C of the Income Tax Act. The scheme comes with a lock-in period of 5 years, during which the deposit cannot be withdrawn. Here are the interest rates for the Indian Overseas Bank Tax Saver FD:

  • 5 years: 6.25% per annum (Regular)
  • 5 years: 6.75% per annum (Senior Citizen)

How to Use Indian Overseas Bank FD Interest Rates Calculator?

Indian Overseas Bank provides an FD interest rates calculator on its official website. This tool helps you calculate the maturity amount and interest earned on your Fixed Deposit. Here’s how to use it:

  1. Visit the Indian Overseas Bank Website: Go to the official Indian Overseas Bank website and navigate to the ‘Fixed Deposits’ section.
  2. Access the FD Calculator: Click on the FD interest rates calculator link.
  3. Enter Details: Input the principal amount, tenure, and type of FD (regular or senior citizen).
  4. Calculate: Click on the ‘Calculate’ button to see the maturity amount and interest earned.

You may also want to know Punjab National Bank FD Interest Rates

How to Open an Indian Overseas Bank FD?

Opening a Fixed Deposit with Indian Overseas Bank is a straightforward process. You can open an FD account online through Indian Overseas Bank’s internet banking portal or visit the nearest branch. Here are the steps to open an FD account online:

1. Login to Net Banking:

Access Indian Overseas Bank’s Internet banking portal using your credentials.

2. Navigate to Fixed Deposits:

Go to the ‘Fixed Deposit’ section under the ‘Deposits’ menu.

3. Choose FD Type:

Select the type of FD (regular, senior citizen, tax saver) you wish to open.

4. Enter Details:

Fill in the required details such as deposit amount, tenure, and nominee information.

5. Confirm and Submit:

Review the details and apply. The amount will be debited from your linked savings account, and the FD will be created.

Factors to Consider Before Investing in an FD

Before investing in a Fixed Deposit, consider the following factors to ensure it aligns with your financial goals:

  1. Rate of Interest: Compare interest rates offered by different banks to maximize returns.
  2. Tenure: Choose a tenure that aligns with your financial needs and goals.
  3. Premature Withdrawal: Check the bank’s policy on premature withdrawal and associated penalties.
  4. Loan Facility: Ensure the bank offers a loan against FD in case you need liquidity.
  5. Tax Implications: Understand the tax implications on the interest earned from the FD.

Conclusion

Indian Overseas Bank’s Fixed Deposits offer a secure and rewarding investment avenue for individuals seeking stable returns. With a diverse range of FD options catering to different financial goals and customer profiles, including senior citizens and tax-saving objectives, the bank provides a comprehensive platform for wealth growth and financial security.

If you are looking for Fixed Deposit investments, there is a wide array of options available in the market, explore well, and get started!

Frequently Asked Questions

What is the minimum deposit amount to invest in an Indian Overseas Bank Fixed Deposit?

The minimum deposit amount for an Indian Overseas Bank FD is typically ₹10,000, but it may vary based on the type of FD and the tenure.

Can I prematurely withdraw my Indian Overseas Bank FD?

Indian Overseas Bank allows premature withdrawal of FDs, subject to certain terms and conditions. However, a penalty may be levied on the interest rate.

Are there any special FD schemes for senior citizens?

Indian Overseas Bank offers special FD schemes for senior citizens with higher interest rates.

What is the lock-in period for the Indian Overseas Bank Tax Saver FD?

The lock-in period for the Indian Overseas Bank Tax Saver FD is 5 years.

Can I get a loan against my IOB FD?

Yes, you can avail of a loan against your FD up to 90% of the deposit amount.

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