IOB offers retail depositors attractive fixed-income savings solutions in the form of fixed-term deposits which are designed to cater to a variety of investment needs. The attractive and competitive rates of interest offered under the banks FD schemes ensure maximisation of returns on depositors' savings held with the bank. Flexibility in tenures and payout options allow for optimal trade-offs between liquidity and returns.
Indian Overseas Bank offers a variety of fixed deposit schemes which can be chosen by customers depending upon their preferences and needs. These are:
Listed below are some of the key differentiating features of fixed deposit schemes by Indian Overseas Bank:
This is a standard fixed deposit scheme which includes depositing a lump-sum deposit amount for a particular period of time and earning interest on the same. This interest can be cumulative or non-cumulative. The deposit period for this scheme ranges from 6 months to 120 months. The interest for these deposits is credited half-yearly. The minimum deposit amount for this scheme is ₹ 1000.
Top Bank FD
The Floating Rate Deposit scheme, as the name suggests, is a slight variation of the regular fixed deposit scheme wherein the interest rate offered is floating instead of fixed i.e., rates are reset every six months a year. The deposit period ranges from 3 years to 10 years. The minimum deposit amount accepted is Rs.1 lakh and thereby in multiples of Rs.10,000. There is, however, no upper limit to the maximum amount that can be deposited. Premature closure is chargeable.
This scheme is offered to those looking to save on tax by investing funds in a fixed deposit. This scheme features deposit periods of 5 years to 10 years and a maximum of Rs.1.5 lakhs is accepted as deposit from a single entity in one financial year. A special rate of 5.20% p.a. is offered on this scheme while senior citizens enjoy a rate of 5.70% per annum on the Tax Saver scheme.
Indian Overseas Bank offers attractive interest rates on tenures ranging from 7 days to 3 years and above. Senior citizens are offered 0.50% additional rate of interest. Effective from 9 November 2020, the IOB fd interest rates for deposits below Rs.2 crore range from 3.40% p.a. to 5.20% p.a.
To be eligible to hold funds under a fixed deposit scheme from Indian Overseas Bank, you need to be any of the following entities:
The minimum amount needed to open a fixed deposit with Indian Overseas Bank depends upon the deposit scheme being availed. However, the minimum amount for most schemes is Rs.1000.
Indian Overseas Bank has not put any limit to the maximum deposit amount for fixed deposit schemes. However, schemes like Tax Saver Scheme, accept only up to Rs.1,50,000 from a single entity in a particular financial year.
Indian Overseas Bank offers a minimum deposit tenure of 6 months and the maximum allowed deposit tenure is 120 months or 10 years for fixed deposit schemes offered by the bank.
Customers can open a FD account with IOB by visiting any of its branches. A duly filled application form along with the required KYC documents and cheque or demand draft for the amount to be deposited is required to be submitted.
Yes. Interest rates on IOBs fixed deposits are taxable under two categories i.e., where PAN details have been submitted and where PAN details have not been submitted.
Where interest earned in a financial year is equal to or more than Rs.5000 in a year, the bank will deduct TDS of 10% on the total interest. However, if PAN details have not been provided then TDS is deducted at 20% on total interest.
Yes. Loans can be availed against fixed deposits at IOB; these loans can be availed for a maximum amount of 90% of the fixed deposit amount.
Yes. Senior citizens are offered interest rates that are 0.50% higher than regular FD rates.
No. Currently, Indian Overseas Bank does not provide credit cards against fixed deposits.
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