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 5.75% to 7.25%, while senior citizens get 0.50% additional interest rate.
Indian Overseas Bank Recurring Deposit Interest Rates
Tenure
General Public p.a.
Senior Citizens p.a.
180 days to 269 days
5.75%
6.25%
270 days to less than 1 year
6.25%
6.75%
1 year to less than 2 years
6.60%
7.25%
2 years to less than 3 years
6.75%
7.00%
3 years and above
6.80%
7.30%
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
Nomination facility available
Minors below 10 years of age can apply jointly with their guardians
Loan against deposit facility available
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.
Revised Indian Overseas Bank Recurring Deposit Rates
The updated interest rates on Recurring Deposit (RD) accounts from Indian Overseas Bank are as follows:
Concerning the base tenure of 6 months to 269 days, the rate remains constant at the existing 5.75% p.a. Similarly, for the tenure ranging from 270 days to less than a year, the rate is unchanged at 6.25% p.a. Also, rate for senior citizens stays constant at 6.25% p.a (6 months- 269 days) and 6.75% p.a (270 days- 1 year).
For tenure ranging from 1 year to less than 2 years, the applicable interest rate has been lowered to 7.30% p.a from the earlier 7.50% p.a. Rate for senior citizens changes from the earlier 8.00% p.a to 7.80% p.a.
For RD deposits with tenures ranging from 2 years to 3 years, the rate has been lowered from the earlier 7.25% p.a to 7.00% p.a. The same interest rate also applies for tenures ranging from 3 years to less than 5 years, and 5 years or more. In each case, the earlier interest rate stood at 7.25% p.a. For each of these three tenure ranges, the interest rate applicable for senior citizens is 7.50% p.a.
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Since my wife is working in Indian Overseas Bank, i have invested my money in that bank. I have been investing the money of Rs. 3000. I'm satisfied with the interest rate. I'm not sure about the tenure period. The received services are fine with Indian Overseas Bank.
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0
ALAGU MUTHU DURAI RAJ
, tiruchirapalli
Reviewed on Jan 09, 2019
I had recurring deposit with Indian overseas bank and the interest rate is good one for me. Simple savings account is enough to open a recurring deposit account with them, also the minimum lock in period is around fifteen days of time.
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5
HARI S KRISHNAN
, chennai
Reviewed on May 28, 2016
IOB is offering 10% interest rate for the recurring deposit with the minimum lock in period of four years. They take the activation charge of Rs.900. The minimum amount to start the plan is nearly Rs.1000. In case we liquid the cash in between the lock in period there is no extra charges.
For five years of tenure I got the recurring deposit and I have selected Indian Overseas bank because it is in my home town. Interest rate in IOB is 9% and this is same across all the banks. Excellent customer service and response was awesome. I am comfortable with this bank.
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0
ROHIT PRATAP SINGH
, panaji
Reviewed on Oct 17, 2015
I have the recurring deposit account with the Indian Overseas Bank. I can manage this account by netbanking. The rate of interest is around 10% and the minimum lock in period is 10 months of time. The services are good with them and I dint faced any netbanking issues. The ATM service is very poor and they are not having several ATM's in delhi.
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2
MANOJ KUMAR JHA
, new delhi
Reviewed on Oct 15, 2015
I have newly opened recurring deposit online in IOB. In that instruction it was clearly mentioned the installment amount will be debited automatically on 10th of every month. When i check the statement on 20th the amount was not debited hence i contacted to customer care they told to make the payment manually!! I lose the interest for 13 days because of false information..
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9
Midhunseelan OS
, chennai
Reviewed on Mar 25, 2015
I am holding a recurring deposit from Indian Overseas Bank. It is for 6 years and the rate of interest offered by the Bank is pretty good compared to other banks. I do stranding instructions and it gets deducted from my account automatically on every month. After the maturity period I will be getting the amount along with the interest amount.
IOB is not charing anything extra and rate of interest on Recurring Deposit is 9.5%. Response is very good while visiting branch for any assistance and also satisfied with employees. I opted IOB for RD is for saving purpose as my salary account is also with them.
I am holding a Recurring deposit with IOB. Customer service offered by them was awesome. Their online banking is great, as I hold an account with them already, it was very easy for me to place a request for RD Online. They did not charge me anything extra for the same. No documents required it hardly took 5 minutes time for me to open this account and the interest rate offered by them was 8.25% for 6 months and more than 6 months it was 8.75%.
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2
PRAKASH RAMAMOORTHY
, chennai
Reviewed on Dec 06, 2014
Absolutely fantastic service from Indian bank of India. They will debit the account first in recurring deposit. Scheme we have to choose on monthly basis after the tenure period they will return the amount with interest rate . Since I have experienced with Indian bank of India I am saying . They are having proper 121 conversation services.
