Indian Overseas Bank FD Rate 2023

Before you open a Fixed Deposit (FD) account with the Indian Overseas Bank, you must first know about the IOB FD interest rates. As compared to other banks, IOB is known to offer higher interest rates on a fixed deposit. 

Indian Overseas Bank (IOB), is among the oldest banks of India. It renders a variety of retail products and services to its customers, such as Current Accounts, Savings Accounts, Recurring Deposits, etc. 

A Fixed Deposit Account is one such retail product of IOB that comes with a fixed interest rate and a capital guarantee. Even in fixed deposits, the bank offers a diverse range of FD schemes so that customers with different needs can opt as per their requirements. 

Let’s dig deeper and know about the IOB fixed deposit interest rates and discover every basic aspect related to the same. 

Indian Overseas Bank Fixed Deposit

Indian Overseas Bank fixed deposit is a scheme designed by the IOB that allows its customers to invest money in a lump sum for a pre-decided term at a fixed rate of interest. 

The IOB FD account presents several tenures of Fixed Deposit products at competitive interest rates. Additionally, the FD account renders various other benefits, including overdraft or loan facility against Fixed Deposit. 

Usually, it is observed that when people open an FD account with the bank, they close it only after maturity. By doing so, they can achieve the financial objectives for which the account was opened. 

However, if you close it before maturity, it won’t be considered a wise choice. It is so because you won’t be able to bear the financial loss if you opt for premature closure. 

Indian Overseas Bank Fixed Deposit Rates

The IOB FD rates were revised and came into effect from 9 February 2023 for various categories. The details of the same are given below: 

IOB Domestic FD Interest Rates – Below Rs 2 Crore

Indian Overseas Bank FD interest rates provided on a deposit below ₹ 2 Crores are mentioned in the table below: 

IOB Tax Saving FD Rates

Indian Overseas Bank FD rates for tax saver deposit scheme are as follows: 

Indian Overseas Bank NRI FD Rates

  for NRIs are as follows: 

Interest Rate for NRO Deposits of Less than Rs 2 Crore

Overseas Citizens of India and the Person of Indian Origin planning to open a Non-resident Ordinary FD Account with IOB will get different interest rates on different tenure. The interest rates for the same have been described in the table below:

Indian Overseas Bank Interest Rate for NRE Deposits

Indian Overseas Bank NRO FD Rates: Rs 2 Crore to Rs 10 Crore

The branch needs to obtain prior permission and interest rate from the Treasury Department, Central Office for Deposits of ₹ 2 Crores and above. 

Indian Overseas Bank Senior Citizen FD Rates

Senior citizens FD rates are subject to get additional benefits on the IOB FD rates. The details of the same are as follows:

Indian Overseas Bank FD Rates for Deposits Less than Rs 2 Crore

Indian Overseas Bank FD Rates for Deposits More than Rs 2 Crore

The branch needs to obtain prior permission and interest rate from the Treasury Department, Central Office for Deposits of ₹ 2 Crores and above. 

Features and Benefits of Indian Overseas Bank Fixed Deposit

People with fixed deposits in Indian Overseas Bank can enjoy the following benefits:

• They have the flexibility to choose the tenure and deposit amount.
• The minimum deposit amount of ₹ 1000 is required to open a fixed deposit account with Indian Overseas Bank. 
• The consumers will get competitive interest rates on Fixed Deposit Schemes. 
• Senior citizens can get an additional interest rate of 0.5% on the regular interest rates applicable on the deposits. 
• On the regular interest rates applicable to their deposits, super senior citizens, who are aged 80 years and above, can have an additional interest rate of 0.75%. 
• A plethora of FD scheme options are available for individuals and non-individuals. 
• IOB has designed a separate tax-saver scheme for NROs. 
• Certain IOB Fixed deposit schemes render the facility for premature withdrawal and partial withdrawal. 
• By investing in the Tax Saver Scheme, resident individuals can avoid paying income tax on the same. 
• Reinvestment and interest payout options also exist.
• Rather than making a premature withdrawal for emergencies, you can avail of a loan against fixed deposit account. 

Eligibility Criteria for Indian Overseas Bank Fixed Deposit

If you are planning to open an FD account with Indian Overseas Bank, then you must be eligible for it. Given below are the criteria for the same:

• You must be a salaried individual or a small trader, rural saver, or self-employed and professional
• Minors are also eligible if they are opening the account as a joint account with an adult. 
• Partnership firms
• Sole proprietorship
• Hindu Undivided Families (HUFs)
• Private and Public Limited Companies 
• Trust, Societies and Associations

Documents Required to Open an FD Account with Indian Overseas Bank

You will have to submit the following documents to open a Fixed Deposit Account with IOB: 

• PAN Card
• FD Application form
• Identify proof such as the Aadhaar Card, PAN Card, Driving license, Passport, etc.
• Two passport size photographs
• Address proof such as the Aadhaar Card, bank statement or utility bills (electricity bills, water bills, telephone bills)
• Other relevant documents are required to be submitted by a partnership firm, companies, sole proprietorship, HUF and trusts. 

How to Open an FD Deposit Account with Indian Overseas Bank?

There are two ways you can open a bank account with the IOB- either online or offline. Let us glance through both the processes:

Opening IOB FD Account Online

To open an FD account online with the IOB, you need to follow four simple steps as follows: 

Step 1: Visit the official website of Indian Overseas Bank and log in to internet banking by entering your username and password. 

Step 2: Navigate to the “Deposit” section and click on the “Open Deposit” option to create a new fixed deposit account. 

Step 3: You will be redirected to the “Request for New Deposit” page. Once you are redirected, click on the “Go” option. Then, furnish all the required details. 

Step 4: Before submitting the application, scrutinise your details properly, then click on the “Confirm” button. 

Opening IOB FD Account Offline

You need to visit the IOB’s nearest branch to open a fixed deposit account with the IOB offline. Approach the right person and ask for the application form for opening an FD. Furnish all the required details and attach all the necessary documents as demanded and submit them to the officials.      

Your account will be opened in just a few days. 

IOB Fixed Deposit Schemes

There are different types of IOB fixed deposit schemes. Some of them are as follows: 

IOB Reinvestment Deposit

As the name suggests, an IOB Reinvestment Deposit account permits its customers to reinvest the interest that is earned on the current fixed deposit. The option for Reinvestment Deposit is available only when your FD account has covered one cycle. 

₹1000 is the minimum amount that you can deposit and it should be in multiples of ₹ 100 thereafter. You can use any amount for the renewals. 

IOB 80 Plus Term Deposit

Such a scheme is specially framed for Super Senior Citizens who are 80 and above 80 years of age. The term of IOB 80 Term Deposit varies from 6 months to 12 months. If the applicant has a self or a joint account with just the spouse, then he/she is entitled to avail of a loan facility of up to 90%. 

IOB Vardhan – Deposit for Senior Citizens

If you are a senior citizen, then this is the right account to invest your hard-earned money. You can either opt for the recurring deposit form or the fixed deposit form to open your account in Vardhan Scheme. 

The term ranges from 15 days to 120 months for the Fixed Deposit Account, while for the recurring deposit account, it is from six months to twelve months. An extra interest rate of 0.50% is applicable to the card rates. 

Nevertheless, a non-resident senior citizen will not be able to enjoy the additional benefits.  

IOB Tax Saver Scheme

True to its name, the scheme is mainly designed to meet tax-saving goals under Section 80C of the Income Tax Act, 1961. The tenure for the IOB tax saver scheme mainly ranges from 5 years to 10 years. 

In this scheme, the minimum amount to be deposited is ₹ 10,000. Moreover, the interest rate in this scheme is compounded on a quarterly basis. Loan facility and premature withdrawal are not permitted in this kind of deposit. 

IOB Floating Rate Deposit

A floating interest rate is usually applied to the deposit. The deposit term for such an account varies from 3 years to 10 years. The five-year G Sec rate will be applicable to deposits having a term of 3 to 5 years. On the other hand, a 10-year G Sec rate will be applicable to deposits having a term of 5 to 10 years. 

How to Close Indian Overseas Bank FD?

There are two ways people often choose to close Indian Overseas Bank FD. When maturity is achieved while the other one is before maturity. 

Closing Your Indian Overseas Bank Fixed Deposit Account on Maturity

To close an FD Account with IOB on maturity, you need to follow the below-mentioned steps:

Step 1: Download the FD Account Closure application form from IOB’s official website. 

Step 2: Attach your “Know Your Customers (KYC)” documents such as your identity and address proof. These may include a copy of your PAN, Aadhaar, etc. 

Step 3: Submit the FD receipt or FD certificate that the bank offers you as the proof of deposit you furnish.     

Step 4: Once you have submitted all the documents along with the application form, the officials will scrutinise them. If they are satisfied with the form and documents, you will be asked to withdraw the fund and transfer it to your savings account. 

You can also opt for cash withdrawal, Demand Draft (DD) or a cheque in your favour by the bank. 

Closing Your Indian Overseas Bank Fixed Deposit Account Before Maturity

Although closing an FD Account before maturity is not recommended, you can still proceed by following the same procedure as above. Or you can also visit the branch directly, ask for the application form for FD account closure, fill it up, attach the documents and submit it.

If the information furnished and documents are valid, you will be asked to withdraw your cash. However, you won’t get the interest rates the same as you receive on the account closure on maturity. 

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