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Indian Overseas Bank, a major public sector bank based out of Chennai, offers multiple FD options to its customers to park their money. The competitive Indian Overseas Bank FD rates help the customers to earn substantial returns of their investment. The rates differ depending on the amount of principal invested and the selected tenure. IOB provides comparatively higher interest rates to senior citizens than general citizens.

IOB FD Interest Rates 2020

TenureFD RatesSenior Citizen FD Rates
7 days – 45 days4.50%5.25%
46 days – 90 days4.60%5.35%
91 days – 120 days5.25%6.00%
121 days – 179 days5.50%6.25%
180 days – 269 days5.75%6.50%
270 days – 364 days6.25%7.00%
444 days6.35%7.10%
1 year 1 day – 1 year 364 days6.25%7.00%
2 years – 2 years 364 days6.30%7.05%
3 years – 10 years6.20%6.95%

IOB FD Rates – Special Features

The IOB FD tenure ranges from 7 days to 10 years

Nomination facility is available

Loan facility up to 90% of the principal

Interest against FD is provided on a half-yearly basis

Senior citizens can avail 0.50% extra interest rates

The minimum deposit amount required to book an FD with IOB is Rs. 1000

Competitive interest rates provided on short term deposits also

Indian Overseas Regular Fixed Deposit Scheme

Under this scheme of IOB, the depositor can make an investment into the deposit to earn higher returns with flexibility

Deposit tenures ranging from 6 months to 120 months

Nomination facility is available

Interest is paid once in 6 months

Loan facility up to 90% of the principal

Resident Indians, public or private company, HUFs, trust, and partnership firm

IOB Term wise FD Interest Rates

IOB Short-term Fixed Deposit Rates

  • There are multiple tenures that come under short term fixed deposits offered by the IOB
  • The tenure for short term FDs varies anywhere from a minimum of 7 days to 364 days
  • The interest rates for these deposits range from 4.50% p.a. to 6.25% p.a.
  • The highest interest rate paid is 6.25% for 270 days to less than 1 year
  • An interest rate of 5.75% can be earned if the tenure chosen is 180 days to 269 days

IOB Medium-term Fixed Deposit Rates

  • Deposits having tenure from 1 year to 3 years come under medium-term fixed deposits
  • The rate of interest provided for medium-term fixed deposits is comparatively higher than short term FDs
  • The interest ranges from 6.25% p.a. to 6.30% p.a.

IOB Long-term Fixed Deposit Interest Rate

  • Long term fixed deposits are for tenures above 3 years
  • The interest rate provided on long term fixed deposit is 6.20% p.a.
  • Customers can get a tax exemption of up to Rs. 1.5 lakh under section 80C of the Income Tax Act by investing in this deposit

Types of IOB Fixed Deposit Schemes

Reinvestment Deposit: Under this scheme, customers are allowed to reinvest the interest earned on their current fixed deposit. These deposits can be Some of the features are as follows:

  • The minimum deposit amount needed for this scheme is Rs. 1000
  • Interest on the deposit is earned every time it is compounded
  • Premature withdrawal is available
  • Senior citizens can avail of 0.50% extra interest rate

IOB Eighty Plus TD

This type of deposit is specially designed for the super senior citizens of India (SSC) and hence the name Eighty place TD (Term Deposit). Some of the features of this scheme are as follows:

  • The tenure ranges from 6 months to 120 months
  • The minimum deposit required for opening an account is Rs. 1000
  • Loan facility of up to 90% available of the deposit amount
  • Nomination facility available

Vardhan – Deposit of Senior Citizens

Vardhan is a specially designed scheme for senior citizens of India. Any individual who has completed 60 years of age is treated as Senior Citizen for the purpose of opening the account under the Vardhan scheme. Some of the features are:

  • Tenure ranges from 15 days to 120 months
  • The minimum deposit amount needed to open the account is Rs. 5000
  • 0.50% extra interest rate for senior citizens
  • Premature withdrawal is available
  • Loan facility is available

Tax Saver Scheme

As the name suggests, this scheme is specially designed to fulfill tax saving purposes under Section 80C of the Income Tax Act, 1961. Some of the features are:

  • The tenure ranges from 5 years to 10 years
  • Minimum deposit amount needed is Rs. 10000
  • The IOB FD Interest in this scheme is compounded quarterly
  • Senior citizens can avail an extra interest rate of 0.50% over the regular rates
  • Premature withdrawal and loan facilities are not available

Indian Overseas Bank FD Calculator

IOB FD calculator helps to determine the interest amount on maturity. It can be found online and all you have to do is enter the basic details pertaining to your FD scheme like principal amount, tenure and rate of interest.

Indian Overseas Bank FD Rates Amidst Coronavirus

Due to the repo rate cut by RBI by 75 bps during coronavirus lockdown, IOB Bank may reduce the FD interest rates in the coming days. This can affect the interest of fixed depositors adversely.

Indian Overseas Bank FD Interest Rates – FAQs

What is the highest rate of interest provided on IOB FD?

A maximum of 6.35% interest rate is provided by IOB on FD.

Who all are eligible to open IOB FD?

All resident individuals, HUFS, NRIs and even minors with guardianship can apply.

What is the minimum amount needed to open an FD account in IOB?

The minimum amount with which you can book an FD is Rs. 1000.

What are the current interest rates provided by IOB on FD?

The current interest rates for general citizens range from 4.50% to 6.35%. For senior citizens, it is between 5.25% to 7.10%.

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