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  • Indian Overseas Bank Recurring Deposit

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    Overview of Indian Overseas Bank

    Indian Overseas Bank is a leading Indian bank that provides consumer and commercial banking products and services. It has its headquarters in Chennai and a global presence with offices in Singapore, Hong Kong, Colombo, Seoul and Bangkok. It has representative offices in Guangzhou, Vietnam, and Dubai. IOB has a wide network of approximately 3,350 domestic branches, which includes 1,150 branches in Tamil Nadu, 3 extension counters as well as eight branches and offices overseas. IOB also ensures easy accessibility of cash with its strong network of more than 3,300 ATMs across the nation. IOB has also initiated a joint-venture and is the part-owner of a bank in Malaysia.

    Recurring Deposit from IOB

    Indian Overseas Bank offers its Recurring Deposit scheme to those customers who have limited or stipulated income and cannot invest a large amount of money at one go but have high financial requirements and can only save small amounts every month to meet these financial needs. IOB puts forward attractive rates of interest for its customers with additional benefits and facilities aimed at increasing efficiency and convenience.


    • Interest on RD is compounded every quarter.
    • Flexible deposit periods ranging from a minimum of 6 months up to a maximum of 120 months.
    • Loan facility is available with a loan up to 90% on the principal and also on the interest accrued.
    • Premature closure of deposit enabled without any difficulty.


    Recurring Deposits from IOB is ideal for salaried individuals, small traders, housewife, student or rural saver. Term deposit accounts can be opened by:

    • A person in his/her own name.
    • Two or more persons jointly.
    • A natural guardian on behalf of a minor.
    • A club, association, society, educational institution and other such bodies.
    • Trustees/Administrators/Courts.
    • Proprietary concerns, Partnership firms and Limited Companies.
    • Government Departments/ Corporations/ Organizations, Local Bodies and statutory authorities, Quasi Government Bodies, etc.
    • Members of Staff or Ex-staff of Indian Overseas Bank.

    How to open an RD

    Those who are interested in opening a Recurring Deposit account with IOB, must visit the Bank and there they will be furnished with a copy of the rules pertaining to holding an RD account and an application form to open an account. The application form is to be duly filled in and signed as per the requirements mentioned within.

    Interest rates offered on IOB Recurring Deposits.

    Based on the term of the deposit and the principal amount, the interest rates differ. Interest ranges from 5% up to 8% according to the tenure. Senior citizens get additional benefits and 0.50% more interest on deposit made. The interest earned on the principal amount is reinvested quarterly to yield a compounded rate and this lump sum amount is paid to the depositor on maturity.


    1. What is the minimum and maximum period of deposit?
    2. Term deposits can be made for periods ranging from a minimum period of 6 months up to a maximum period of 120 months.
    3. What is the minimum amount of deposit for RD?
    4. The minimum deposit is Rs. 50/- per month and later the amount can be further increased in multiples of Rs. 5/-.
    5. Do Senior citizens get any extra benefit on Recurring Deposits?
    6. For resident senior citizens, additional interest rate on RD will be 0.50% over the regular rates for the general public. For Special Deposits exceeding Rs.25 lakhs, the usual interest rates will apply, without the benefit of additional interest rate.
    7. Are there any pre-closure charges?
    8. Pre - Closure charges of 1%(interest accrued) on premature withdrawal of RD is applicable.
    9. Is TDS applicable on RD?
    10. No. As per Income Tax Act 1961, income tax would not be deducted at source from the interest on RD.
    11. Can depositors avail loan against the RD?
    12. Depositors can avail loans/cash credit accounts/ advances against deposits from the branch where the deposit account has been opened by them. Deposit accounts will be considered as collateral to advances availed by the depositors from the bank. If required, depositors may also request for rollover of the loan account as well as the deposit account.

    Know the Current Recurring Deposit Rates

    Recurring Deposit - Sitemap
    Recurring Deposit by Banks
    Recurring Deposit by other Institutions

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