Indian Overseas is a major Indian Bank headquartered in Chennai and has branches in India as well as overseas. The bank has a whopping 3350 domestic branches including 1150 in the state of Tamil Nadu itself. The bank was set up in the year 1937 to promote overseas banking and boost foreign exchange operations.
Today, the bank deals in a variety of financial products and services that include private banking, corporate banking, retail banking, asset management and so on. Indian Overseas Bank has been one of the first few banks to have implemented Core Banking Solutions as part of their system so as to provide a robust and integrated platform to the customers.
Indian Overseas Bank Fixed Deposits
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.
Who is eligible to hold fixed deposits with Indian Overseas Bank?
To be eligible to hold funds under a fixed deposit scheme from Indian Overseas Bank, you need to be any of the following entities:
What fixed deposit schemes does Indian Overseas Bank offer?
Indian Overseas Bank offers a variety of fixed deposit schemes which can be chosen by customers depending upon their preferences and needs.
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.
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 ₹ 1 lac and thereby in multiples of ₹ 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 ₹ 1.5 lakhs is accepted as deposit from a single entity in one financial year. A special rate of 9% is offered on this scheme while senior citizens enjoy a rate of 9.5% per annum on the Tax Saver scheme.
What is the minimum amount required to open an Indian Overseas Bank fixed deposit?
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 ₹ 1000.
What is the maximum amount accepted in an FD account with Indian Overseas Bank?
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 ₹ 1,50,000 from a single entity in a particular financial year.
What is the minimum and maximum deposit tenure offered by Indian Overseas Bank?
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.
How do I open a fixed deposit account with Indian Overseas 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.
What are the interest rates offered by Indian Overseas Bank on its fixed deposits?
The rates offered on fixed deposits of Indian Overseas Bank vary with respect to the deposit tenure. The lowest fixed deposit rate being offered by the bank is 5% per annum for short-term deposits while the highest rate on offer is 8.75% per annum.
Does Indian Overseas Bank offer tax-saver fixed deposit?
Yes. Fixed Deposits which have a lock-in period of minimum 5 years and maximum 10 years are eligible for income tax rebates under section 80C of the Income Tax Act. These deposits also fetch a higher rate of interest from the bank.
Are deposit schemes from Indian Overseas Bank taxable?
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 ₹ 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.
What are some of the most significant features of Indian Overseas Bank deposits?
Listed below are some of the key differentiating features of fixed deposit schemes by Indian Overseas Bank
Can a loan be availed against fixed deposit funds that I hold with Indian Overseas Bank?
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.
Does Indian Overseas Bank offer special rates to senior citizens?
Yes. Senior citizens are offered interest rates that are 0.50% higher than regular FD rates.
Will IOB issue a credit card against my fixed deposit account?
No. Currently, Indian Overseas Bank does not provide credit cards against fixed deposits.