IOB, short for Indian Overseas bank provides a recurring deposit scheme to its customers with attractive interest rates. One can save a substantial amount by putting aside a small number of your earnings with the help of great IOB recurring deposit interest rates offered by the bank. One can choose from tenures ranging from 6 months to 120 months (10 years). The interest rates of
IOB RD Interest Rates 2020
|Tenure||Regular Rates (p.a.)||Senior Citizen Rates (p.a.)|
|180 days to 269 days||5.75%||6.25%|
|270 days to 364 days||6.25%||6.75%|
|1 year to 1 year 364 days||6.60%||7.10%|
|2 years to 2 years 364 days||6.75%||7.25%|
|3 years to 10 years||6.80%||7.30%|
Indian Overseas Bank RD Interest Rates – Special Features
- IOB provides loan facility up to 90% of your RD amount
- The highest interest rates offered to general citizens is 6.80% whereas, for senior citizens, it is 7.30%
- The minimum deposit accepted by Indian Overseas Bank starts from as low as Rs. 50
- Nomination facility is provided by the bank so that you can nominate your family member or spouse to collect the final matured amount
- The deposit tenure ranges from 6 months to 120 months
- The minimum deposit amount can be deposited in the multiples of Rs. 5
- Any Indian resident, salaried individual, housewife, small trader,
- TDS deductions are subject to the existing income tax rules set at the time of opening account
Benefits of IOB RD Account
- One gets to enjoy attractive interest rates by IOB on recurring deposits
- Senior citizens get the privilege of earning 0.50% over the regular interest rates
- With great offers like loan and nomination facility, it becomes easier to save money in a convenient way
Premature Withdrawal of Indian Overseas Bank RD Amount
IOB allows premature withdrawal of your RD amount before the maturity date but charges a nominal penalty as per their norms. Also, partial withdrawals are not allowed.
IOB RD Interest Calculator
The RD maturity amount you receive is the sum of all the below-given parameters. Alternatively, one can also use IOB RD Interest calculator to check the interest earned on their deposit.
Deposit Amount: The initial amount deposited by a customer in their account. The minimum deposit amount for IOB RD starts from as low as Rs 50.
IOB RD Interest Rates: Indian Overseas Bank offers a higher rate of interest on recurring deposits with longer tenure and lowers interest rates for an account opened for a shorter period. The highest interest rate offered by the bank is 6.80% for the deposit amount.
Deposit Tenure: As mentioned in the previous point, low-interest rates are offered for short tenure RDs and vice-versa.
Documents Needed to Open RBL RD Account
- Voter ID card
- PAN card
- Driving License
- Government ID card
- Photo ration card
- Senior citizen ID card
- Telephone bill
- Electricity bill
- Bank statement with cheque
- Certificate /ID card issued by the post office
Penalty for Non Payment of Monthly Installments
Bank grants you a few days grace to clear the pending payment which you have missed owing to some reasons. However, in case you don’t pay your installment even after that grace period, the bank will charge a penalty as per their norms.
IOB RD Interest Rates – Frequently Asked Questions
What is the minimum deposit required to open an RD account in Indian Overseas Bank?
The minimum deposit required to start an RD account in IOB is Rs. 50.
What is the eligibility to open an IOB RD account?
Any individual who is an Indian resident and HUF (Hindu Undivided Families). Moreover, NRIs can also open an RD account through NRO and NRE accounts. Bank also provides an RD scheme for minors (less than 10 years of age) under the guardianship of parents to monitor their finances.
What are the documents required for IOB Recurring Deposit Scheme?
Any valid identity proof and address proof will suffice along with passport size photographs of the applicant and duly filled application IOB RD account.
Does IOB allow partial withdrawal of the RD account?
No, the bank doesn’t allow partial withdrawal of recurring deposits.
Is there any lock-in period on IOB RD account?
Yes, the minimum lock-in period is 3 months and if the account holder wishes to withdraw the amount before that, no interest is provided by the bank and the principal amount is refunded to the source.
Is Nomination Facility Allowed in IOB Recurring Deposit Scheme
Yes, Indian Overseas Bank provided the nomination facility.
How is the interest calculated on IOB RD Account
Interest in IOB account is compounded on a quarterly basis.