Indian Overseas Bank FD Interest Rates 2020
IOB Fixed Deposit Rates
| Tenure | FD Rates | Senior Citizen FD Rates |
|---|---|---|
| 7 days to 45 days | 4.50% | 5.25% |
| 46 days to 90 days | 4.60% | 5.35% |
| 91 days to 120 days | 5.25% | 6.00% |
| 121 days to 179 days | 5.50% | 6.25% |
| 180 days to 269 days | 5.75% | 6.50% |
| 270 days to 364 days | 6.25% | 7.00% |
| 444 days | 6.35% | 7.10% |
| 1 year 1 day to 1 year 364 days | 6.25% | 7.00% |
| 2 years to 2 years 364 days | 6.30% | 7.05% |
| 3 years to 10 years | 6.20% | 6.95% |
- The above rates are applicable for deposits of below Rs. 1 crore. Check FD rates of all banks in India
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Indian Overseas Bank FD
Indian Overseas Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of Indian Overseas Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Indian Overseas Bank are:
- Variable deposit periods ranging from 6 months to 120 months
- Nomination facility is available
- You get interest once in 6 months
- You can avail loans upto 90 per cent of the principal
Indian Overseas Bank Fixed Deposit Rates
FDs are attractive financial instruments for depositors looking for attractive returns and high safety. Indian Overseas Bank FD interest rates range from 4.50% p.a. to 6.25% p.a. for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Indian Overseas Bank FD rates for senior citizens range from 5.25% to 7.00% p.a.
Always, compare tenure wise FD rate of banks to choose the FD rate at which the bank offers the highest fixed deposit interest rate and if possible, opt for FD with highest interest rate. Indian Overseas Bank FD rates are the highest for the deposits with a tenure of 444 days to 444 days, wherein the FD rate of interest is 6.35% p.a
Indian Overseas Bank FD interest rates for long term deposits with tenure of 5 years to 10 years offer good returns. Indian Overseas Bank fixed deposit rates for deposits with a tenure of 10 years is 6.20%. Senior citizen are offered deposit rates of 6.95% p.a. for long termed FDs.
Important Factors of Indian Overseas Bank Fixed Deposit
Indian Overseas Bank offers best FD rate of 6.35% on term deposits for a tenure of 444 days to 444 days. The bank offers special interest rate on FD for senior citizens. Current Indian Overseas Bank FD rates for senior citizens range from 5.25% to 7.10%. Fixed Deposits rates of Indian Overseas Bank are a function of many factors such as monetary policies of RBI, economic growth rate, credit demand and liquidity position of the bank.
The factors affecting Fixed Deposit interest rates are as follows:
Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.
Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.
Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.
Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.
Indian Overseas Bank Fixed Deposit Scheme
Description:
- Under this scheme, the depositor is allowed to make investment into the deposit to earn attractive and higher returns along with a flexibility and security.
- Variable deposit periods ranging from 6 months to 120 months
- Nomination facility is available
- You get interest once in 6 months
- You can avail loans upto 90 per cent of the principal
Who is eligible?
- Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm
Indian Overseas Bank FD Calculator
Indian Overseas Bank fixed deposit calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. The amount of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.
- Deposit amount – This is the initial amount deposited by a customer in Indian Overseas Bank. Bank may allows higher interest rate on larger deposits. Indian Overseas Bank offers deposit amount in the range of Rs. 1,000 to No Limit.
- Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. Indian Overseas Bank offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits of less than a year. Highest interest rate offered by Indian Overseas Bank is 6.35% for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days .
- Period of deposit - Bank offers low interest rate for short tenure FDs and higher interest rate for long tenure FDs. Bank offers a rate of 4.50% for a 7 Days FD and a rate of 6.20% for a 10 Years FD.
- Interest Compounding Frequency - This determines the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half yearly or annual frequency.
Illustration: : Mr. A opens a FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 4.50 %. In this case, the maturity amount at the end of 7 Days will be Rs. 100,086 which includes the principal of Rs. 1 lakh and interest of Rs. 86 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.
Indian Overseas Bank calculates quarterly interest on its fixed deposits.
FD in Indian Overseas Bank – Premature Withdrawal
Premature closure of Term Deposit with Indian Overseas Bank is along with the lower interest rate of 1% for deposits above Rs. 5 lakh than the contracted rate. The penal provisions for premature closure on Indian Overseas Bank FD are subject to change from time to time and may also vary with deposit schemes.
Loan against Fixed Deposit Indian Overseas Bank
Indian Overseas Bank offers loan up to 90% against its own deposit. Note that Indian Overseas Bank will not give you loan against FD of any other bank. Indian Overseas Bank offers Loan against FD at the rate of 5.5% to 7.35%
Maximum loan tenure is restricted up to the maximum tenure of the FD.
Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in Indian Overseas Bank. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.
Documents required to open Fixed Deposit Account in Indian Overseas Bank
- PAN Card or declaration in Form No. 60 or 61 as per the Income Tax Act
Indian Overseas Bank Fixed Deposit during Coronavirus
RBI has announced a repo rate cut of 75 bps in response to coronavirus lockdown. In response to this rate cut, Indian Overseas Bank may reduce FD rates in the near future which could adversely impact the interests of fixed depositors.
FAQs on Indian Overseas Bank Fixed Deposit
You can earn a maximum interest of 6.35% on Indian Overseas Bank fixed deposit.
Are there any special rates for senior citizens FD of Indian Overseas Bank?Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 4.50% to 6.35%. Compared to this, the rate of senior citizens FD are in the range of 5.25% to 7.10%.
What is the tenure range for Indian Overseas Bank Fixed Deposit?The tenure for Indian Overseas Bank Fixed Deposit ranges from 7 days to 10 years.
Is there any minimum amount that I have to give for opening a Fixed Deposit with Indian Overseas Bank?The minimum deposit amount required to book an FD with Indian Overseas Bank is Rs. 1,000.
Can I deposit additional amount in my FD account?No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.
Who is eligible for opening an FD account in Indian Overseas Bank?All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.
What documents are required to open an FD account in Indian Overseas Bank ?The documents required to open an FD account in Indian Overseas Bank includes PAN Card or declaration in Form No. 60 or 61 as per the Income Tax Act.
Is it possible to change the tenure of my existing fixed deposit account with Indian Overseas Bank ?No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.
What are the implications of opening an FD bank account without having PAN?Following are the implications for the customers opening an FD account with Indian Overseas Bank without their PAN card
- TDS will be deducted at the rate of 20% as against 10% under section 206AA
- NO TDS credit from the Income Tax department
- NO TDS certificate will be issued
- Form 15G/H and other exemption certificates will be invalid and penal TDS will apply
Current interest for FD in Indian Overseas Bank ranges between 4.50% - 6.35%. For senior citizens the interest rates ranges bweteen 5.25% - 7.10%.
Can a customer open a FD account online in Indian Overseas Bank?Yes, you can submit your application for opening a FD account on the website of Indian Overseas Bank. After submitting the application, you will be contacted by the bank’s representative for further process.
What is cumulative FD and traditional FD?In cumulative FD the interest amount calculated each month is added with the principal balance to calculate the interest for next month. This means that each month’s interest amount becomes the part of the invested sum next month. However, in the case of traditional FD, the interest for each month is calculated on the originally invested sum, and it paid monthly as well.
