Indian Overseas Bank (IOB) FD Rate
Indian Overseas Bank offers a number of fixed deposit schemes. The FDs can be of tenure ranging from min 7 Days to 5 Year 1 Months 7 Days . The roi for different schemes starts from 4.00% to 7.10 % for the general public and 4.50% to 7.60 % for senior citizens. The min amount required to open an Fixed Deposit with Indian Overseas Bank is Rs.1,000
Types Of Indian Overseas Bank Fixed Deposit Schemes
Indian Overseas Bank is offering a different kinds of fixed deposits to its customers. These are :
Indian Overseas Bank Domestic Term Deposits FDView Scheme
Given below are the latest Indian Overseas Bank Domestic Term Deposits FD, ranging from 7 Days to 3 Year as of August, 2022.
Interest Rates for Public (p.a.)
Interest Rates for Senior Citizens (p.a)
|7 Days Upto 14 Days
|15 Days Upto 29 Days
|1 Months Upto 1 Months 15 Days
|1 Months 16 Days Upto 2 Months
|2 Months 1 Days Upto 3 Months
|3 Months 1 Days Upto 4 Months
|4 Months 1 Days Upto 5 Months 29 Days
|6 Months Upto 8 Months 29 Days
|9 Months Upto 1 Year
|1 Year 1 Days Upto 1 Year 2 Months 19 Days
|2 Year Upto 3 Year
|3 Year Upto
|Upto 1 Year 2 Months 19 Days
Indian Overseas Bank NRE FDView Scheme
Given below are the latest Indian Overseas Bank NRE FD, ranging from 1 Year to 3 Year 1 Days as of August, 2022.
Interest Rates for Public (p.a.)
|1 Year Upto 2 Year
|2 Year Upto 3 Year
|Upto 1 Year 2 Months 19 Days
|Upto 3 Year 1 Days
Indian Overseas Bank Tax saving FDView Scheme
Given below are the latest Indian Overseas Bank Tax saving FD, ranging from to 5 Year 1 Months 7 Days as of August, 2022.
Interest Rates for Public (p.a.)
Interest Rates for Senior Citizens (p.a)
|Upto 5 Year 1 Months 7 Days
With various financial services and products, Indian Overseas Bank niches in several kinds of term deposits. One of their prime products, IOB FD rates, are offered at attractive prices, making the scheme a lucrative income-generating option for many. IOB FD Interest rates are subject to change now and then and currently are being offered at a range of 3.25% to 5.85%. They have flexible tenure options for its customers as well. Get an extensive idea of how the Indian Overseas Bank Fixed Deposit rates are offered and how you can benefit from the same.
Indian Overseas Bank FD Rate Highlights
The IOB FD rate as presented by the bank’s official website suggests that they have an FD interest rate policy that ranging between 3% to 5.70%. This has also been revised for the latest applicable IOB FD rate, which ranges from 3.25% to 5.85%. This shows that the bank is creating a more convenient and revenue-generating investment plan for its customers. These IOB FD rates have been shown for an investment amount below INR 2 crores. The maximum return is possible on an investment with a maturity period longer than three years. If customers want to generate the maximum revenue, they should be prepared to keep their monetary capital parked with the bank for at least three years. The IOB fixed deposit rate for three years and above tenure is 5.85% currently. Furthermore, as the bank allows premature withdrawal, customers will have to incur certain closure charges. This can be explained as follows.
- There is no penalty for any retail term deposit, which amounts to INR 15,000.
- In case the amount lies between INR 15,000 to INR 5 Lakhs, a 0.50% charge will be involved.
- Furthermore, for any amount ranging from INR 5 Lakh to less than INR 2 crore, the user will have to incur a penalty of 1% of the total amount.
- Lastly, any investment above INR 2 crore still will be a 1% cut.
Types of Indian Overseas Bank Fix Deposit
IOB FD scheme is a great investment tool for creating extra income for the future. Now, various customers come with an array of needs and financial dispositions. This makes them need an ideal plan to make the most of the scheme. IOB FD comes with various scheme types that suit the users in their way. Users have the provision to pick the ones that adhere to their needs in the best possible way. Here is a list of all the FD schemes offered by IOB.
- Reinvestment Deposit - Here, the customers have the provision to put the interest earned back in the deposit pool for a larger return expectation.
- Recurring Deposit - If anyone needs to make a monthly recurring contribution of their monetary capital can opt for the recurring deposit scheme. Here the IOB FD rates for the scheme are also attractive and competitive. This is ideal for salaried individuals who can make a monthly deposit without a miss.
- IOB Eightly Plus Term Deposit - IOB has devised a scheme that will benefit old-age citizens. This IOB FD plan is suitable for customers who are 80 years and above. They get specialised IOB FD rates as well.
- Education Deposit - Contribute to higher education or college tuition fees. The IOB FD rates for the education deposits are also lucrative, allowing savings for education.
- Vardhan - Just like the eighty-plus scheme, this Vardhar IOB FD scheme aims to target customers above 60.
- Tax Saver Scheme - Claim tax benefits under section 80C of the income tax act 1961 with the tax saver scheme. There will be a lock-in period of 5 years.
- Floating Rate Deposit - The IOB FD rates for floating rate deposits will be changeable and will be affected as per the applicable market rates. Here one can join the account solely or in joint with any eligible individual.
- Special Fixed Deposit M-Q - This plan offers customers a regular monthly or quarterly interest revenue. This scheme is open to all kinds of customers in terms of age group.
- Multiple Deposit Plan I & II - The multiple deposits are ideal for anyone with a regular income. To be eligible for this scheme, one has to be a salaried employee, professional, or business associate.
- NRO Tax Saver - Similar to a regular tax saver scheme, an NRO tax saver deposit aims to generate income for NRI investors while giving them tax benefits under section 80C of the Income Tax Act 1961.
- IOB Saral - This can be opted by any NRI individual or any minors jointly with their guardians.
- IOB Suvidha - This is a peculiar term deposit scheme where you can get a cash credit facility and chequebook facility. Customers will get a cash credit account set up when they opt for the IOB Suvidha.
- Unfixed Deposit - This fixed deposit account is created for individuals only. Users have the provision to pick their duration ranging from 7 days to 179 days. The minimum balance requirement will be INR 50 Lakhs.
- Flexi RD - The Flexi recurring deposit scheme is available for individuals, companies, firms, and an array of entities to which they can contribute a certain amount monthly.
- Short Deposit - Any short-term duration deposit can be set up with the help of a short-deposit plan.
Features and Benefits of Indian Overseas Bank FDs
With a massive array of fixed deposit schemes, Indian Overseas Bank has managed to design plans that suit the needs of various investors. There is something for everyone, from the short deposit plans to the NRO tax saver plan.Some of the recurring patterns with the IOB FD schemes are as follows:
- Loan facilities on investment collateral
- 90% overdraft facility available with the investment
- Easy premature withdrawal facility available with the deposit scheme. There will be penalties ranging from 0.50% to 1%.
- Senior citizens also get a specialised deposit facility with attractive IOB FD rates. There are separate products for citizens aged above 80 and citizens between 60 years to 80 years of age.
- Joint account facilities available with the IOB FD scheme.
- Lucrative minimum deposit plans available with the IOB FD rates.
- Tax benefitting plans are also available with the IOB FD scheme. With this, customers have the provision to claim their returns up to INR 1,50,000, which is explained under the Income Tax Act of 1961.
- Interest is compounded quarterly with the provision to choose a tenure ranging from 7 days to more than three years. The minimum and maximum tenure depend on the scheme applied.
- Lastly, some schemes are specifically designed to meet needs, such as education loans, senior citizen funds, government-backed schemes, and much more.
Eligibility Criteria for Indian Overseas Bank FD
Given the fact that there are many plans offered by the Indian Overseas Bank, they have a range of eligibility criteria to deliver their products and services to the right kind of customers. With that established, not only are the IOB FD rates lucrative, but they also require parameters that customers must adhere to. Here are some eligibility criteria for applying to an Indian Overseas Bank FD scheme.
- The applicant should be a citizen of India. In the case of non-residents, they must possess valid documents to support their Indian origin.
- Individuals, companies, HUFs, partnerships firms, and other legal entities can apply for the IOB FD scheme, given they provide valid documentation to uphold their claim.
- Salaried individuals, professionals, business people, homemakers, and students can apply for the IOB fixed deposit plan.
- In the case of the senior citizen FD scheme, the customer must meet age requirement criteria.
- For tax savings plans, the benefits will be provided for the primary account holder in case of a joint account.
- In the case of a minor applying the scheme, a parent or guardian must be involved to take ownership of the account.
How is the interest rate calculated on Indian overseas bank Fixed Deposit?
Indian Overseas Bank FD rates are set by the bank’s authorities while considering the prevailing market price and the rates set by other banks. This makes the IOB FD rates both competitive and attractive for the customers. Furthermore, the customers opting for the IOB FD scheme can use the online Fixed Deposit Calculator tool to know how much they can earn from the scheme. Speaking of the calculation of the IOB FD Interest Rates, basic mathematical formulas are used. There are two ways to do this calculation. First is the simple interest calculation method. The other way is to calculate the compound interest.
For the simple interest calculation, one can use the following formula:
P x R x T / 100
This formula translates to principal multiplied by the rate of interest multiplied by duration.
For the compound interest calculation, one can use the following formula.A = P (1 + r / n ) n t
This translates as Amount, equivalent to the principal amount multiplied by the sum of 1 and the interest rate upon the number of compounding periods. This figure will be multiplied by the number of compounding periods and tenure.
Tax on Indian Overseas Bank FD
The interest earned on the IOB FD rates is taxable by law. The bank is liable to deduct the appropriate tax amount from the source. However, there are ways to claim tax benefits. This can be done by converting the IOB Bank FD rates into a tax savings scheme. This way, one can legally claim a tax benefit of up to INR 1,50,000, which is applicable under Section 80C of the Income Tax Act 1961.
Indian Overseas Bank FD Minimum/ Maximum Deposit Amount
IOB FD schemes have varied minimum and maximum limits. These are as listed below:
|Can increase the investment to multiples of INR 100.
|Recurring Deposit Scheme
|Can increase the investment amount by multiples of INR 5.
|Can increase the investment amount by multiples of INR 100 per month.
|Tax Saver scheme
|Can invest up to INR 1,50,000 in a financial year.
|A floating rate deposit
|of INR 1,00,000
|Can increase the investment amount to multiples of INR 10,000.
|Motor Accident Claim Annuity Term Deposit
|There is no upper limit set
|For Special Fixed Deposit M-Q
|There is no specification of an upper limit.
|Multiple Deposit Plan I
|Can increase the investment amount to multiples of INR 5.
|Multiple Deposit Plan II
|Can increase the investment amount to multiples of INR 1000.
|NRO tax saver account
|Maximum limit of INR 1,50,000
|No upper limit set
|No upper limit
|Flexi Recurring Deposit
|Maximum limit of INR 1,00,000 per month
Compare Indian overseas bank Fixed Deposit Returns with Top Banks
It will be beneficial for the applicants to acquaint themselves with the prevailing market rates across some of the top banks. This comparison with the IOB Bank FD rates with other banks provides clarity on how interest rates are competitive. Customers can use an FD Calculator to compare the results based on the bank’s respective interest rates. The table below showcases the comparison of IOB Bank interest rates with some top banks, namely SBI, HDFC, IDBI, Kotak, etc.
|Name of Bank
|State Bank of India FD
|2.90% to 5.65%
|3.40% to 6.45%
|HDFC Bank FD
|2.75% to 6.10%
|3.25% to 6.60%
|IDBI Bank FD
|2.70% to 5.75%
|3.20% to 6.50%
|Kotak Mahindra Bank FD
|2.50% to 5.90%
|3.00% to 6.40%
|Punjab National Bank FD
|3.00% to 6.10%
|3.50% to 6.60%
|Canara Bank FD
|2.90% to 6.00%
|2.90% to 6.50%
|Axis Bank FD
|2.50% to 6.05%
|2.50% to 6.80%
|Bank of Baroda FD
|3.00% to 5.50%
|3.50% to 6.50%
|IDFC First Bank FD
|3.50% to 6.90%
|4.00% to 7.40%
How to Open an Indian overseas Bank FD Account
Indian Overseas Bank has become a highly reputed financial institution for its various financial products and services. Customers can now apply for the fixed deposit scheme offered by the bank through online means. Here is how one can apply for an IOB FD rate online.
- Go to the official website of IOB, where you can access the Internet banking portal.
- Register if you haven’t already done so. This will require you to give your basic details and register your phone number.
- Once the account is created, log on to the portal by entering your credentials.
- From the dashboard, you can access the Deposit section
- Click on the open deposit option from the portal.
- Select the type of deposit that applies to you.
- Click on the request new deposit page option. Provide the details required by the portal.
- Click on confirm. You will receive notifications from the banking site pertaining to the deposit account opening request.
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Frequently Asked Questions (FAQs)
What is the FD interest rate in Indian overseas bank Fixed Deposit?
The IOB FD rates that are prevailing currently are set in the range of 3.25% to 5.85%.
What is the interest of 1 lakh in an Indian overseas bank Fixed Deposit?
The computed interest rate on an investment of INR 1,00,000 will be about INR 3,250. Here the interest rate assumed is 3.25% for a tenure of 3 months. Since the interest rate compounds quarterly, the amount of the IOB FD rate will change accordingly.
Does Indian overseas bank Fixed Deposit provide additional FD rates to senior citizens?
There is a provision for senior citizens to enjoy higher interest rates as compared to traditional fixed deposit schemes. The IOB FD rates for senior citizens have a hike of 0.50%.
How to get a fixed deposit receipt online Indian overseas bank Fixed Deposit?
Users can download slips from their IOB internet banking dashboard by logging in to their profiles. If they need further assistance, they can also contact customer service directly.
Does Indian overseas bank Fixed Deposit Charge for Premature Withdrawal of FDs?
IOB FD rates also come with premature withdrawal penalties ranging from 0.50% to 1%. The penalty rates vary for the amount of investment.
Does Indian overseas bank Fixed Deposit allow joint fixed Deposit accounts?
There is a provision for the customers to use the joint account facility. They can tag along other users as well. However, in the case of tax saver funds, the primary account holder will get the taxable benefits.
Does Indian overseas bank Fixed Deposit allow pre-closure of fixed deposit accounts?
Preclosure of funds is allowed for customers with IOB FD accounts. There will be penalties applicable as well.
What is the penalty for breaking FD in Indian overseas bank Fixed Deposit?
The applicable penalty for breaking a Fixed Deposit account in Indian Overseas Bank is within the range of 0.50% and 1% of the investment amount.
What is the Minimum/Maximum amount required to open an FD account with an Indian overseas bank Fixed Deposit?
The minimum deposit required is INR 50, only applicable for the recurring deposit scheme, whereas the maximum limit is not set. Users have the provision to increase their deposit depending on the scheme chosen.
Who are eligible to open an Indian overseas bank Fixed Deposit account?
Any individual of Indian origin is eligible for opening an IOB FD account. Other than that, companies, firms, HUFs, and so on can apply for the scheme. They will be required to produce valid identity documents and residence proof.