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IOB FD Interest Rates

IOB FD Rates 2020

Last Updated 10th Sep 2020

Indian Overseas Bank is one of most reliable FD providers amongst a number of FD providers in the market. Indian Overseas Bank FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on Indian Overseas Bank FD is 5.45%. Latest Indian Overseas Bank FD interest rate for senior citizens, on the other hand ranges between 4.25% to 6.20%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 45 days 3.50% 4.25%
46 days to 90 days 4.00% 4.75%
91 days to 120 days 4.50% 5.25%
121 days to 179 days 4.50% 5.25%
180 days to 269 days 5.00% 5.75%

IOB Fixed Deposit (FD)

Indian Overseas Bank FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of Indian Overseas Bank Fixed Deposit are:

  • Deposit Amount: Indian Overseas Bank FD can be opened with an amount as a low to up to No Limit.
  • FD Tenure: Ranges between 7 days to 10 years.
  • Interest Rate Range: 3.50% p.a. to 5.45% p.a.
  • Senior Citizens FD Rate: 4.25% to 6.20% p.a.
  • Highest Interest Rate: As per today’s rate, Indian Overseas Bank’s highest interest rate on FD is 5.45% offered for a tenure of 10 years.
  • Safety of Indian Overseas Bank Deposits: Indian Overseas Bank deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: Indian Overseas Bank provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes: Regular Fixed Deposit

Indian Overseas Bank Best FD Plan

We need to compare tenure wise latest FD rate of Indian Overseas Bank to choose the tenure at which it provides the highest interest rate. Indian Overseas Bank FD rates are best for the deposits with a tenure of 1 year 2 months 19 days to 10 years, wherein the current FD rate of interest is 5.45% p.a

If one is looking to invest in short term deposits with Indian Overseas Bank, FD interest rates range from 3.50% p.a. to 5.00% 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 4.25% to 5.75% p.a.

If one is looking to invest in long term deposits, Indian Overseas Bank FD interest rates with tenure of 5 years to 10 years are a good choice with interest rates on deposits with a tenure of 10 years at 5.45%. Senior citizens are offered special rates from bank with highest deposit rates of 6.20% p.a. on long term FDs.

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:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

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

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 4.5% to 6.45%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 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 ₹ 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 ₹ 90,000 availed for 1 month only. The amount he repays after 1 month is ₹ 90,744. So, the interest charged on the loan taken is ₹ 744.

FD Account Opening Process at Indian Overseas Bank

To open a Fixed Deposit account in Indian Overseas Bank, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the Indian Overseas Bank FD after reading the terms and conditions.

Nomination Facility on Indian Overseas Bank FD

Indian Overseas Bank offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a Indian Overseas Bank fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

Indian Overseas Bank Fixed Deposit Scheme

Regular Fixed Deposit

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

FAQs

What is the highest FD rate for Indian Overseas Bank?

You can earn a maximum interest of 5.45% 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 3.50% to 5.45%. Compared to this, the rate of senior citizens FD are in the range of 4.25% to 6.20%.

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 ₹ 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

What is the current interest rate on FD in Indian Overseas Bank?

Current interest for FD in Indian Overseas Bank ranges between 3.50% - 5.45%.

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 which includes filling an application process and submitting KYC documents.

In how many years FD will double in Indian Overseas Bank?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.45%. For Indian Overseas Bank FD the number of years in which your FD will get doubled is; 72/5.45 = 13


IOB News - Sep 2020
  • 2020-08-21 : Indian Overseas Bank reported Rs. 120.69 crore net profit in Q1FY21
    Indian Overseas Bank reported a net profit of Rs.120.69 crores for the period ended June 30, 2020, as against a net profit of Rs.143.79 crores for the period ended March 31, 2020. In addition to this, the bank posted a total income of Rs.5233.63 crores backed by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans. Total deposits which include Fixed and recurring deposits increased to Rs 2.26 lakh crore as on June 30, 2020, as against Rs 2.21 lakh crore by June last year.
  • 2020-05-14 : Indian Overseas Bank revised fixed deposits interest rate
    With effect from 7 May 2020, Indian Overseas Bank revised the FD interest rate. FD rates for 7 to 45 days is 4.50%, for 46 to 90 days is 4.60%, and 91 to 120 days is 4.85%. Further, the rate for 121 to 179 days stands at 5.10%, for 180 to 269 days stands at 5.35% and 270 days to less than one year stands at 5.60%. FD rates for one year to above three years is 5.70%. The fixed deposit interest rate for 444 days is 5.75%.
  • 2020-01-09 : Indian Overseas Bank revised fixed deposits interest rate
    With effect from 8 January 2020, Indian Overseas Bank revised the FD interest rate. FD rates for 7 to 45 days is 4.50%, for 46 to 90 days is 4.60%, and 91 to 120 days is 5.25%. Further, the rate for 121 to 179 days stands at 5.50%, for 180 to 269 days stands at 5.75% and 270 days to less than two years stands at 6.25%. The fixed deposit interest rate for more than 444 days is 6.40%.
  • 2019-10-16 : Revised FD rates for Indian Overseas Bank
    Indian Overseas Bank revised its interest rates on fixed deposits, with effect from October 10, 2019. Revised interest for a period of 7-45 days is 4.50%, for 46- 90 days the rate is 4.60%, the rate for 91-120 days is 5.25%, for 121 to 179 days it is 5.50%, for 180-269 days the rate is 5.75%, and for 270 days to 1 year the rate is 6.25%. For longer tenure of 1-2 years, the rate is 6.50%, and for two years and above, the rate is 6.40%.
  • 2018-07-30 : IOB posts net loss of Rs 919 crore
    Chennai-headquartered public sector lender Indian Overseas Bank (IOB) posted a net loss of Rs 919 crore against Rs 499 crore a year ago. Total deposits year on year basis rose by Rs 213168 crore for the June quarter against Rs 210748 crore in the previous year. CASA of the bank improved to 36.85% against 35.85% while total CASA has increased to Rs 78560 crore from against Rs 75561 crore a year ago.
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