The Constitution of the Board of the Indian Overseas Bank is mainly governed by "The Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970”, which was formulated by the Central Government, post consultation with the Reserve Bank of India, “in exercise of the powers conferred by section 9” of "The Banking Companies (Acquisition and Transfer of Undertakings) Act 1970". Hence, this bank maintains to highest assurance of quality in terms of banking especially for Indian citizens. They are highly at par with other modern banks and offer the best of products such as the Tax Saver Scheme. In the Finance Act of 2006, the Section 80C of The Income Tax Act, 1961 was amended in order to include deposits that are placed with a scheduled bank qualifying for deduction under 80C. In terms of this amendment a deposit scheme had then been introduced with special value added features to benefit customers as the name suggests mainly to save tax.
The main eligibility criteria for this product includes:
|Account Type||Single and joint both permissible|
Min: Rs. 10,000
Max: Rs. 1,50,000 is accepted under the scheme from one individual / under one deposit account in year (Year means one year from 1st April to 31st March).
|Rate of Interest||Special rate for deposits of Rs.10,000 to Rs.1 lac: 7.75%. Senior Citizen deposits: 0.50% over and above the above rates. (As of: February 2016)|
Minimum: 5 years
Maximum: 10 years
|TDS||The single depositor or the first holder of joint deposit can claim exemption from Income Tax under section 80C for amount invested in the deposit along with all other approved investments under section 80C with a maximum of Rs.1.5 lakh.|
|Loan against IOB Tax Saving Scheme||Loan cannot be granted against the deposit nor can the deposit be accepted as collateral security.|
|Nomination (if any)||Nomination can be made for the deposits as per the existing rules for nomination. No nomination, however, can be accepted in the case of deposits held for and held by or on behalf of a minor as per the rules of the scheme.|
|Repayment of Deposit||Deposit is repayable on or after maturity date in the normal course. Premature closure is not permitted till the deposit completes 5 years from date of deposit.|
*Interest rates are linked to the bank’s base rate and are subject to change as per the bank’s discretion.
In such as case the nominee is entitled to claim the deposit amount, but before or after the maturity date. The claim from the nominee is to be settled based on the current guidelines in force for settlement of claim on death of depositors. In cases of deposits where the depositor has not stated any nomination, the deposit amount can be settled with the legal heirs.
Types of deposit that can be accepted include
The PAN number of the depositor as well as his signature will be displayed on the deposit receipt.
In such a case a duplicate receipt can be issued by simply furnishing an indemnity.
While transfer of deposit between branches of IOB is permitted, transfer between banks is not permitted. Branches, therefore, should not accept deposits transferred from another bank.
Useful Information on IOB Fixed Deposit