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Indian Overseas Bank Recurring Deposit Interest Rates 2021

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.

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

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

  1. Can I add nominees to the RD account?

    Yes, you can add nominees to the RD account.

  2. Does IOB provide a partial withdrawal facility on its RD account?

    No, IOB does not provide the partial withdrawal facility on its RD account.

  3. 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.

  4. Can HUFs open an RD account?

    Yes, HUFs can open an RD account.

  5. What is the minimum amount that must deposited in a month?

    The minimum amount that must be deposited in a month is Rs.50.

News About Indian Overseas Bank Recurring Deposit

  • 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.

    6 April 2016

Recurring Deposit - Sitemap

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