4.50% - 6.50%
Interest rates
3 months - 10 years
Time Period
1 lakh - no limit
Min. - Max amount
QUARTERLY
Compounding
About Indian Overseas Bank FD
Indian Overseas Bank, a major public sector bank based out of Chennai, offers multiple FD options to its customers to park their money. The competitive Indian Overseas Bank FD rates help the customers to earn substantial returns on their investment. The rates differ depending on the amount of principal invested and the selected tenure. IOB provides comparatively higher interest rates to senior citizens than general citizens.
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| Started On | 1937 |
| Head Quarters | Chennai |
| CRISIL Rating | NA |
| CEO | Partha Pratim Sengupta |
| Listed on exchange as | Indian Overseas Bank |
| ICRA Rating | NA |
Indian Overseas Bank FD Rates 2024
| Tenure | Regular customers | Senior citizens |
|---|
Features and Benefits of IOB FD
- The IOB FD tenure ranges from 7 days to 10 years
- Nomination facility is available
- Loan facility up to 90% of the principal
- Interest against FD is provided on a half-yearly basis
- Senior citizens can avail of 0.50% extra interest rates
- The minimum deposit amount required to book an FD with IOB is Rs. 1000
- Competitive interest rates provided on short term deposits also
Types of IOB FD Schemes
Indian Overseas Regular Fixed Deposit Scheme
- Under this scheme of IOB, the depositor can make an investment into the deposit to earn higher returns with flexibility
- Deposit tenures ranging from 6 months to 120 months
- Nomination facility is available
- Interest is paid once in 6 months
- Loan facility up to 90% of the principal
- Resident Indians, public or private company, HUFs, trust, and partnership firm
Reinvestment Deposit
- Under this scheme, customers are allowed to reinvest the interest earned on their current fixed deposit.
- The minimum deposit amount needed for this scheme is Rs. 1000
- Interest on the deposit is earned every time it is compounded
- Premature withdrawal is available
- Senior citizens can avail of 0.50% extra interest rate
IOB Eighty Plus TD
- This type of deposit is specially designed for the super senior citizens of India (SSC) and hence the name Eighty place TD (Term Deposit).
- The tenure ranges from 6 months to 120 months
- The minimum deposit required for opening an account is Rs. 1000
- Loan facility of up to 90% available of the deposit amount
- Nomination facility available
Vardhan – Deposit of Senior Citizens
- Vardhan is a specially designed scheme for senior citizens of India. Any individual who has completed 60 years of age is treated as Senior Citizen for the purpose of opening the account under the Vardhan scheme.
- Tenure ranges from 15 days to 120 months
- The minimum deposit amount needed to open the account is Rs. 1 lakh
- 0.50% extra interest rate for senior citizens
- Premature withdrawal is available
- Loan facility is available
Tax Saver Scheme
- As the name suggests, this scheme is specially designed to fulfil tax saving purposes under Section 80C of the Income Tax Act, 1961.
- The tenure ranges from 5 years to 10 years
- Minimum deposit amount needed is Rs. 10000
- The IOB FD Interest in this scheme is compounded quarterly
- Senior citizens can avail an extra interest rate of 0.50% over the regular rates
- Premature withdrawal and loan facilities are not available
Term wise Indian Overseas Bank FD Rates
Short-term Deposits
For an IOB FD with tenure ranging from 7 days to 12 months, the interest rate offered is from 3.40% p.a. to 5.15% p.a. These deposits are known as short term deposits as they have a tenure less than 1 year.
Medium-term Deposits
Medium-term fixed deposits have their tenures ranging from more than 1 year to less than 5 years. The interest offered by the bank on these deposits is around 5.15% - 5.20%
Long-term Deposits
These deposits have their tenure ranging from 5 years to 10 years and offer an interest rate of 5.20%
Indian Overseas Bank vs Other Banks' FD Rates
| Name | Tenure | Interest rate |
|---|
How to invest in Indian Overseas Bank FD?
You can now invest in IOB FD through both online methods such as internet banking and mobile app and offline route as well.
1) Internet Banking
Follow the below-listed steps to open an IOB FD account via internet banking:
- Sign in to the IOB NetBanking account
- Under the ‘Deposit’ tab, choose the ‘Open Deposit’ option
- The page will redirect to the ‘New Deposit’ page. Click on ‘Go’ to proceed, and fill out all the necessary details along with nominee information.
- After verifying the details and click on ‘Confirm’ to book a new fixed deposit.
2) Mobile App - IOB App
Follow the below-listed steps to open an FD account through IOB Mobile App-
- Download the IOB App and sign in.
- Next, under the menu option, in the ‘Save’ tab, select the ‘Deposit’ option to proceed.
- Select the ‘Open Fixed Deposit’ option.
- Furnish all the personal and nominee information in the next step.
- Lastly, verify all the details and click on ‘Confirm’ to book a new fixed deposit.
3) Opening IOB FD Offline
For opening an IOB FD account offline, one needs to visit the nearest India Overseas Bank (IOB) branch. Next, fill out the IOB FD application form and submit all the necessary documents along with the deposit amount. On successful processing of the application, an FD receipt will be provided by the India Overseas Bank.
Eligibility to Open an IOB FD Account
Individuals or entities satisfying the following criteria can opt for a fixed deposit in IOB bank –
- Resident Indians.
- Minors, if they apply with a co-applicant above the age of 18.
- Hindu Undivided Families.
- Sole traders, partnership firms, and public and private limited companies.
Documents Required to Open Indian Overseas Bank FD
The following documents have to be furnished for opening an IOB FD –
- KYC documents for identification and address proof. You can submit any of the following documents for this purpose –
- Aadhaar card.
- Voter ID card.
- Driving License.
Additionally, utility bills and municipal tax receipts can be furnished as address proof.
- PAN card to fulfil taxation requirements.
- Passport-sized photographs.
Tax on Indian Overseas Bank Fixed Deposit
An investment in Indian Overseas Bank Tax Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Indian Overseas Bank FDs entitle to tax saving under Section 80C of the Income Tax Act.
Also, note that the interest income from the Indian Overseas Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Indian Overseas Bank FD exceeds Rs. 40,000 p.a.
For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
Loan Against Indian Overseas Bank FD
Indian Overseas Bank offers loans against their FDs. Investors can get up to 90% of the deposit amount as a loan against their Indian Overseas Bank Fixed Deposit investment. The rate of interest for the loan is usually 1-2% higher than the rate of Fixed Deposit. Note that Indian Overseas Bank does not offer loans against the tax-saving FD.
Premature Closure of Indian Overseas Bank FD
Indian Overseas Bank Fixed Deposits can be withdrawn prematurely, excluding the tax-saving Fixed Deposit. No penalty is levied for deposits below Rs 5 lakhs. And for deposits more than Rs 5 lakhs, the penalty is levied at 1%.
FAQs
What is the highest rate of interest provided on IOB FD?
A maximum of 7.10% interest rate is provided by IOB on FD.
Who all are eligible to open IOB FD?
All resident individuals, HUFS, NRIs and even minors with guardianship can apply.
What is the minimum amount needed to open an FD account in IOB?
The minimum amount with which you can book an FD is Rs. 1 lakh.
What are the current interest rates provided by IOB on FD?
The current interest rates for general citizens range from 4.00% to 7.10%. For senior citizens, it is between 4.50% to 7.60%.
Is premature withdrawal allowed in IOB FD?
Yes, Indian Overseas Bank FD account can be closed prematurely. However, Indian Overseas Bank charges a penalty of 1% for deposits above Rs. 5 lakh for premature withdrawal. Also, the penalty charges for premature withdrawal on Indian Overseas Bank FD are subject to change from time to time and also depends on deposit schemes.
