Indian Overseas Bank Recurring Deposit scheme is a good savings option if you want to get into the habit of saving every month. The bank offers recurring deposit for different tenures. The interest rates range from 5.00% to 5.45%, while senior citizens get 0.50% additional interest rate.
Rate of Interest for deposits less than Rs.2 crore:
| Tenure | Rate of Interest |
|---|---|
| 180 days to 269 days | 5.00% |
| 270 days but less than a year | 5.00% |
| 1 year but less than 2 years (Except 444 days) | 5.40% |
| 444 days | 5.45% |
| 2 years but less than 3 years | 5.45% |
| Above 3 years | 5.45% |
Note: The interest rates mentioned in the table are effective as of 9 July 2020.
Know more about Recurring Deposit
Indian Overseas Bank Recurring Deposit Key Highlights
| Minimum Amount Deposit | Min: Rs.50 (for any higher amount, deposit in multiples of Rs.5) |
| Tenure | Min: 6 months Max: 10 years |
| Eligibility | Salaried individual, small trader, housewife, student or a rural saver |
| Additional Rate for Senior Citizens | 0.50% |
| Loan Availability | Up to 90% on the principal and also on the interest accrued |
| Premature Closure | Allowed |
Benefits of Indian Overseas Bank Recurring Deposits
- Attractive interest rates
- Additional rates for senior citizens
- Minors below 10 years of age can apply jointly with their guardians
- Loan against deposit facility available
Know more about IOB RD Calculator
How to Open an RD Account in Indian Overseas Bank
You can open a recurring deposit account with Indian Overseas Bank in two ways:
- By visiting the branch
- Through net banking
If you are an existing Indian Overseas Bank account holder, use your net banking username and password to log in to your online account and open an e-RD right away. If you are not an Indian Overseas account holder, you will have to open an account first. After your account is active, you can log in to net banking and open an e-RD.
You can invest your money in RD by Indian Overseas Bank and enjoy competitive rates. However, to enjoy better returns, look for other investment vehicles like mutual funds, fixed deposits, stocks, and bonds, among others.
Indian Overseas Bank Recurring Deposit FAQs
- Can I add nominees to the RD account?
Yes, you can add nominees to the RD account.
- Does IOB provide a partial withdrawal facility on its RD account?
No, IOB does not provide the partial withdrawal facility on its RD account.
- Will there be any charges levied in case of foreclosure?
Yes, a penalty will be levied in the case of foreclosure. Depending on when the account was opened, the penalty will vary.
- Can HUFs open an RD account?
Yes, HUFs can open an RD account.
- What is the minimum amount that must deposited in a month?
The minimum amount that must be deposited in a month is Rs.50.
RD Interest Rate Pages
- United Bank RD Interest Rates
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- Allahabad Bank RD Interest Rates
- Central Bank RD Interest Rates
- Federal Bank RD Interest Rates
- Indian Bank RD Interest Rates
- Andhra Bank RD Interest Rates
- Kotak Mahindra RD Interest Rates
- Syndicate Bank RD Interest Rates
- IOB RD Interest Rates
- City Union Bank RD Interest Rates
- Citybank RD Interest Rates
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