Indian Overseas Bank Fixed Deposit

Public Sector

AA

-%

Interest for 3 years

Indian Overseas Bank Fixed Deposit Tax Saving FD Rates Based on Tenure Period

Historical FD Rates →
TenureNormal Citizen FD RateSenior Citizen FD Rate
7 days - 14 days3.4%3.9%
15 days - 29 days3.4%3.9%
1 months - 1 months3.4%3.9%
2 months - 2 months3.9%4.4%
2 months - 3 months3.9%4.4%
4 months - 6 months4.4%4.9%
9 months - 12 months4.9%5.4%
1 year - 1 year 4 days 5.15%5.65%
1 year 5 days - 1 year 5 days 5.2%5.7%
2 years - 2 years 4 days 5.2%5.7%

About Indian Overseas Bank Fixed Deposit

IOB provides a wide range of products and services such as saving bank accounts, current accounts, term deposit, retail loans, home loans and mortgages, depository services, gold investment products, debit and credit cards, multi city cheque facilities, insurance and mutual funds, and real time gross settlement services Indian Overseas Bank (IOB) was founded on February 10, 1937 by Shri. M.Ct.M. Chidambaram Chettyar, a pioneer in many fields. The Bank was founded by him with the main objective of specializing in foreign exchange business in banking to take the Bank across the globe The bank has a balance sheet size of Rs. 2.6 Lakh Crs as on 31st March 2020 The bank recorded a loss of Rs 8500 Crs in FY20

3.4% - 5.2%

FD Rate

3.9% - 5.7%

FD Rate for Seniors

-

Minimum Deposit

₹ 2 Crores

Maximum Deposit

0 days

Lock-in

-

FD Tenure

-

Loan against FD

AA

CRISIL Rating

Indian Overseas Bank Fixed Deposit Returns Based on Investment Amount

Investment AmountFor 3 years with interest of %For 5 years with interest of %
₹ 50,000₹ NaN₹ NaN
₹ 1 lakh₹ NaN₹ NaN
₹ 2 lakh₹ NaN₹ NaN
₹ 5 lakh₹ NaN₹ NaN
₹ 10 lakh₹ NaN₹ NaN

Compare Indian Overseas Bank Fixed Deposit Returns with Top Banks

Use FD calculator to change values and compare your returns from top banks.

vs

Pre Tax

Post Tax

Tax Rate
Maturity Amount₹ NaN₹  113300
Total Investment Amount₹ 100000₹ 100000
Total Interest Gained ₹ NaN₹  13300
Income Tax on Wealth Gained₹ 12898₹ 13092

Compare Indian Overseas Bank Fixed Deposit Rates with Top Banks

Bank NameFD Interest Rates
State Bank of India
5.4% - 6.2%
State Bank of India
5.3% - 5.8%
Axis Bank
5.4% - 5.9%
Bank of Baroda
5.1% - 5.6%
Bandhan Bank
5.5% - 6.25%
HDFC Bank
5.15% - 5.65%
IDFC First Bank
5.75% - 6.25%
ICICI Bank
4.3% - 4.3%
Indian Bank
5.25% - 6%
Punjab National Bank
5.2% - 5.7%
Union Bank of India
5.5% - 5.5%
IDBI Bank
5.1% - 5.6%

Calculate Indian Overseas Bank Fixed Deposit Returns

₹ 100000

Total Investment

₹ 0

Wealth Gained

₹ 100000

Maturity Amount

How to invest in Indian Overseas Bank Fixed Deposit?

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Indian Overseas Bank offers fixed deposits for regular, senior and super senior deposits. IOB FD interest rates are higher than their savings account interest rates. The bank provides additional interest to senior and super senior citizens. IOB fixed deposits allow premature withdrawal and also offer a loan against their deposits. In this article, we have covered about IOB fixed deposits in detail.

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IOB FD Rates 2021

TenureRegular FD Interest RatesSenior Citizen FD Interest Rates
7 days to 45 days3.40%3.90%
46 days to 90 days3.90%4.40%
91 days to 120 days4.40%4.90%
121 days to 179 days4.40%4.90%
180 days to 269 days4.90%5.40%
270 days to 364 days4.90%5.40%
444 days5.05%5.55%
1 year to 1 year 364 days5.15%5.65%
2 years to 2 years 364 days5.25%5.75%
3 years to 10 years5.20%5.70%
Note: IOB revises Fixed Deposit rates periodically

Indian Overseas Bank fixed deposit rate is higher than their savings account interest rate. The IOB FD rates range between 3.4% and 5.25% for regular citizens. Furthermore, for senior citizens, the interest rate is slightly higher by 0.5% and ranges between 3.9% and 5.75%. Also, for super senior citizens (aged above 80), the interest rate is higher by 0.75%.

The highest Indian Overseas Bank fixed deposit rate is 5.25% for a tenure of 2 years to 2 years 364 days. Also, for the same tenure, the senior citizens’ interest rate is 5.75%, which is the highest interest rate. Furthermore, one can estimate the returns from an FD investment using IOB fixed deposit calculator.

Key Features of IOB Fixed Deposit

IOB offers fixed deposits at attractive interest rates. Depositors can earn higher returns than a savings bank account. Following are key features of IOB Fixed Deposits:

Tenure

The fixed deposit tenure ranges between 7 days to 2 years 364 days. Once the FD tenure commences, one cannot change the tenure of the FD investment. However, one can opt for premature withdrawal and close the existing IOB FD and start a new FD with the desired tenure.

Minimum and Maximum Deposit Amount

The minimum amount that one requires to invest in IOB FDs depends on the type of fixed deposit. Following are the minimum investments for each of the types.

  • Reinvestment Deposit – INR 1,000
  • IOB 80 Plus TD – INR 1,000
  • Vardhan – INR 5,000
  • Tax saver scheme – INR 10,000
  • Floating rate deposit – INR 1 lakh

Indian Overseas Bank FD Interest Rate

Indian Overseas Bank FD Interest Rate ranges between 3.40% p.a to 5.25% p.a. Also, one can estimate their returns from IOB fixed deposits using a fixed deposit calculator.

Preferential Interest Rates

The Indian Overseas Bank offers preferential interest rates (additional 0.50%) to its senior citizen depositors. Also, the interest rates range between 3.90% to 5.75% for senior citizen depositors. Furthermore, the bank offers an additional 0.75% for Super Senior Citizens (above the age of 80 years).

Eligibility

To be able to open one an FD account with IOB, one has to be eligible. Following is the eligibility criteria for the same.

  • Resident individuals, including minors. Minors can invest in IOB FDs only when an adult is jointly opening an account with them.
  • Sole proprietorship
  • Partnership firms
  • Public and private companies
  • HUFs
  • Trusts, associations and societies

Documents Required

To open an FD account with IOB, one would need the following documents

  • FD application form
  • PAN Card
  • 2 photographs
  • Identity proof (PAN Card, Aadhar Card, Passport, or Driving license, etc.)
  • Address proof (Electricity bills, telephone bill, Aadhar card, bank statement)
  • And any other documents that are required by a sole proprietorship, partnership, companies, HUF and trusts.

Additional Payments

No, one cannot deposit any additional amount in an existing IOB fixed deposit. However, one can always invest in another IOB FD with an additional amount.

Tax and TDS

Investment in Tax Savings scheme of IOB Bank is eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Also, the interest income that one earns from IOB FDs is taxable at the individual’s income tax slab rates. For interest income above INR 40,000 per annum, TDS charge is levied at 10%. Additionally, for senior citizens, the TDS threshold limit is INR 50,000. This rate is applicable only if the PAN details are furnished to the bank. If not, the TDS rate is 20%.

To determine if the interest income from IOB FD is above or below the TDS threshold limit, one can use a Scripbox’s FD calculator available online. Also, one can use a free online Income Tax Calculator to estimate their tax liability. Scripbox’s online Income Tax Calculator helps in determining tax liability.

Safety

Under the Deposit Insurance Scheme of RBI, DICGC insures all IOB deposits up to INR 5,00,000.

Premature Withdrawal

Yes, IOB charges a penalty for early or premature withdrawal of FDs. Furthermore, for deposits above INR 5 lakhs, the penalty charged is 1% on the contracted interest rate. Also, early withdrawal is not available for tax saver deposits.

Nomination Facility

Depositors can nominate beneficiaries for their IOB fixed deposits.

Auto-Renewal

IOB also offers an auto-renewal facility for the deposits.

Convenience

Depositors can now easily open and also manage their IOB FD investments through the bank’s online portal.

Loan against FD

IOB offers loans against their fixed deposits. Investors can get up to 90% of the deposit amount as loan. Also, the loan tenure is limited to the tenure of the FD. Furthermore, the interest on a loan is 1-2% above the FD interest rate. Moreover, loan facility is not available for tax saver deposits.

Investors can take any loan such as loans against property (home loan), business loans, education loans, etc., against their FD investments. Also, to loan EMI, they can use the loan EMI calculator. The loan EMI calculator works as a personal loan EMI calculator, home loan calculator, and as well as a car loan calculator. Furthermore, an individual can use the EMI calculator in multiple scenarios by changing the variables –  personal loan interest rate, home loan interest rate, and car loan interest rate.

PAN Card

A PAN card isn’t mandatory to invest in IOB FD. However, there are a few implications if one doesn’t submit PAN details.

As per the regulations of Section 206AA, the bank will cut TDS at 20%, instead of 10% if the interest income exceeds INR 40,000 (INR 50,000 for senior citizens). Also, IOB will not issue any TDS certificate. Moreover, form 15G, 15H and all other exemption certificates will be invalid.

Requirement of Savings account

It is essential to have a savings account with IOB to invest in their fixed deposit.

Types of Fixed Deposit Schemes offered by IOB

Following are the types of FD schemes offered by IOB:

Reinvestment Deposit

IOB 80 Plus Term Deposit

Vardhan – Deposit for Senior Citizens

Tax Saver Scheme

Floating Rate Deposit

Types of Fixed Deposit Schemes: In Detail

Reinvestment Deposit

IBO’s reinvestment deposit allows the depositors to reinvest the interest into the existing deposit. Furthermore, it helps in increasing the corpus. The interest on deposit also earns interest. In other words, the scheme works with a compounding effect. Following are the features of the scheme:

  • Minimum Deposits Amount: INR 1000
  • FD Clouse: Depositors can close the FD without any penalty
  • Renewal: The bank offers renewal of the deposit scheme

IOB 80 Plus Term Deposit

The scheme is specially designed for Super Senior Citizens (SSC) of India. IOB recognises citizens above the age of 80 years or more as SSC. Also, IOB offers higher rates for super senior citizens (extra 0.75%).Following are the features of the scheme:

  • Tenure: 6 months to 120 months
  • Minimum Deposit Amount: INR 1,000
  • Maximum Deposit Amount: INR 1 crore
  • Loan against FD: The depositors of the scheme an avail loan up to 90% of the deposit amount.
  • Nomination Facility: Available
  • Account holding type: Depositors can open a single or joint account with their spouse. Also, for a joint account, the primary account holder has to be a super senior citizen.

Vardhan – Deposit for Senior Citizens

The Vardhan scheme is a senior citizen fixed deposit scheme. The scheme offers preferential interest rates for the depositors. Additional 0.50% interest is applicable to these schemes. Furthermore, the additional interest is only for residents of India. Following are the features of the scheme:

  • Tenure: 15 days to 120 months
  • Minimum Deposit Amount: INR 5,000
  • Premature withdrawal or Premature Closure: Available
  • Loan against FD: Available
  • Account holding type: Depositors can open a single or joint account. Also, for a joint account, the primary account holder has to be a senior citizen.
  • Renewal: Available, and also depositors don’t need to submit age proofs.
  • International debit cards: The scheme provides the free international debit card to the depositors

Tax Saver Scheme

The scheme offers tax benefits on deposits for individuals residing in India. The tax savings scheme deposits qualify for tax deductions under Section 80C of the Income Tax Act. Following are the features of the scheme:

  • Tenure: 5 years to 10 years
  • Minimum Deposit Amount: INR 10,000
  • Maximum Deposit Amount: INR 1,50,000
  • Interest: Compounded quarterly and paid half yearly
  • Loan against FD: Not available
  • Premature withdrawal: Not available
  • Nomination Facility: Available

Floating Rate Deposit

Under the floating rate deposit scheme, the interest rates keep changing. The interest is computed on updated IOB FD rates, and not on the rate prevailing at the time of buying the FD. The interest rates are reset once every six months. For deposits maturing in:

3 to 5 years, the interest rate shall be the last six months daily average of 5 year G Sec rate.

5 to 10 years, the interest rate shall be the last six months daily average of 10 year G Sec rate.

Also, the bank gives an option to convert from existing fixed rate deposit to a floating rate deposit scheme. Following are the features of the scheme:

  • Tenure: 3 years to 10 years
  • Minimum Deposit Amount: INR 1,00,000
  • Interest: Floating interest rates
  • Loan against FD: The depositors of the scheme an avail loan up to 90% of the deposit amount.

Does IOB offer Recurring Deposits?

Yes, IOB offers recurring deposit schemes. The scheme is suitable for individuals with limited or stipulated income. Furthermore, individuals looking for small and regular savings can opt for the scheme. Also, depositors can avail loan up to 90% of their deposit amount.

TenureGeneral RatesSenior Citizen Rates
180 days to 269 days5.75%6.25%
270 days to 364 days6.25%6.75%
1 year to 1 year 364 days6.60%7.10%
2 years to 2 years 364 days6.75%7.25%
3 years to 10 years6.80%7.30%
Note: IOB revises RD interest rates periodically

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