Indian Overseas Bank (IOB) lets customers choose from a long list of deposit options and the rates of interest offered are competitive. The FD rates offered by IOB are higher for senior citizens when compared to regular individuals. The bank offers other benefits such as nomination facility, automatic renewal and a wide range of interest pay out options.
Indian Overseas Bank FD Rates
IOB offers a high interest rate of 6.25% p.a. on deposits that are held for 270 days to less than 1 year. This is the best FD rate offered by the bank for regular individuals. For senior citizens, the highest rate of interest is again for the same tenure (270 days to less than 1 year), for which the interest rate is 6.75% p.a. An IOB fixed deposit comes in different tenure ranges that a customer can choose from.
The revised interest rates per year for Regular & Senior Citizen with effect from 9 July 2020 is given below:
|Tenure||Interest rate for genral public (p.a.)||Interest rate for senior citizens (p.a.)|
|7 days to 45 days||3.50%||4.00%|
|46 days to 90 days||4.00%||4.50%|
|91 days to 179 days||4.50%||5.00%|
|180 days to less than 1 year||5.00%||5.50%|
|1 year to less than 2 years||5.40%||5.90%|
|444 days and above||5.45%||5.95%|
*The above interest rates are for investments less than Rs.2 crore.
IOB short-term fixed deposit rates
- There are a number of tenures when it comes to short-term fixed deposits offered by the IOB.
- The interest rates paid to general public for short-term term deposits ranges from 3.50% p.a. to 5.00% p.a.
- The tenure varies anywhere from a minimum of 7 days to 364 days.
- The highest rate of interest paid is 5.00% p.a. for 180 days to less than 1 year.
IOB medium-term fixed deposit rates
- Deposits with tenures ranging from 1 year to 2 years fall under medium-term fixed deposits.
- The interest rate paid for medium-term fixed deposits is higher when compared to short-term fixed deposits.
- The best FD interest rate paid is 5.40% p.a.
IOB long-term fixed deposit rates
- All long-term fixed deposits are for tenures above 2 years.
- The interest paid for long-term fixed deposits is 5.45% p.a.
- Those who want to apply for the IOB Tax-Saving Deposit scheme can also do so under this slab, for which, the rate of interest will be 5.45% p.a.
- Those who invest money in the IOB Tax Saving Deposit Scheme will get a tax exemption of up to Rs.1.5 lakh under Section 80C of the Income Tax Act.
IOB senior citizen fixed deposit rates
- All senior citizens investing in IOB fixed deposits are eligible to avail an additional 0.50% on all deposit schemes.
- Super senior citizens, aged 80 years and above, are provided an additional interest rate of 0.75% p.a.
- The interest rate that is paid for this age group starts from 4.00% p.a. and goes up to 5.95% p.a.
- The highest interest paid to senior citizens is 5.95% p.a. for a tenure above 444 days
- For 1 year to less than 2 years, the rate of interest paid is 5.90% p.a.
- For 180 days to less than 1 year, the rate of interest paid is 5.50% p.a.
- For an investment period of 91 days to 179 days, the rate of interest paid is 5.00% p.a.
Indian Overseas Bank NRE Term Deposit Rates*
|Tenure||Interest rate (p.a.)|
|1 year to 2 years||5.40%|
|2 years to 3 years||5.45%|
|3 years and above||5.45%|
*These rates are effective from 9 July 2020 and are for deposits below Rs.2 crore.
Know more about IOB fixed deposits
How to apply for IOB deposits: Apply for IOB fixed deposit online in a simple and easy process. This can be done with minimal documentation and in a very less span of time. Those who already have a savings bank account in the bank can open it through the bank’s net banking facility.
NRO and NRE deposits: There are a lot of deposit options that are also available for Non-Resident Indians (NRIs). This is available in the form of both NRE and NRO deposits. The bank offers attractive interest rates even on these schemes and they come with a wide range of benefits.
FCNR deposits: This is another option that gives NRIs an opportunity to invest money in the currency that they may be earning in. FCNR deposits can be held in some of the major currencies in the world and comes with a number of advantages.