Indian Overseas Bank FD Interest Rates 2024

Indian Overseas Bank (IOB) was established on 10 February 1937, specialising in foreign exchange banking processes. The bank presently has a global presence with branches in countries like Malaysia, Burma, Penang and many more. IOB was one of the few banks that was nationalised in 1969. IOB is well-known for the different fixed deposits or term deposit schemes offered to Indian citizens as well as Non-Resident Indians (NRIs). IOB FD interest rates are also competitive in the market, making it a strong investment option for people wanting to deposit money in low-risk assets. 

Let us take a closer look at the IOB FD interest rates, along with the eligibility criteria, features and types of FD schemes.

IOB FD Interest Rates 2024

Features and Benefits of Indian Overseas Bank FD  

Here is a list of the benefits and features of Indian Overseas Bank’s fixed deposits.

1. All IOB fixed deposit accounts allow you to make premature withdrawals, except for the tax-saving FDs.
2. Senior and super senior citizens also get additional benefits on interest rates by 0.50% and 0.75%, respectively.
3. The bank allows investors to nominate beneficiaries for their fixed deposit accounts. Accurate information about the nominee must be submitted to avoid any discrepancies.
4. The Deposit Insurance Scheme of RBI secures all deposits of Indian Overseas Bank. This scheme covers up to ₹5,00,000 of the deposit amount, making it a safe place to invest your money.
5. With IOB FDs, you can opt for an auto-renewal facility. 
6. A tax deduction of up to ₹1,50,000 can be claimed under Section 80C for deposits made under the IOB Tax Saver scheme.

How to Book Indian Overseas Bank FD?

To book an FD with Indian Overseas Bank, you can either follow the online or offline method. Here’s a detailed discussion of both these methods:

Online Method

Here are the steps you can follow to apply for an FD using either the net banking portal or the IOB mobile application: 

1. Internet Banking

• Step 1: Visit the official website of Indian Overseas Bank and sign in to your Net Banking account with registered credentials.
• Step 2: Navigate to the ‘Deposit’ tab and select ‘Open Deposit’.
• Step 3: After getting redirected to the ‘New Deposit’ page, choose ‘Go’ to proceed and fill in your personal details along with nominee information.
• Step 4: Verify the entered details and select the ‘Confirm’ option to book your fixed deposit.

2. IOB Mobile Application

The steps to open an IOB FD account using the bank’s mobile application are given below.

• Step 1: Download the IOB app on your mobile and sign it with customer credentials.
• Step 2: Navigate to the ‘Menu’ option, and under the ‘Save’ tab, click on ‘Deposit’ to proceed with booking the account.
• Step 3: Click on the option ‘Open Fixed Deposit’.
• Step 4: Enter all your personal details with the information of your nominee.
• Step 5: Verify all the details you entered and select the ‘Confirm’ option to open your new fixed deposit account.

Offline Method

To open your Indian Overseas Bank fixed deposit account offline, visit the bank’s nearest branch. An employee will provide you with the FD application form. Fill it in with all your personal information, including details of the nominee.

Submit the application form with the required documents instructed by the bank personnel and deposit the amount. After your application is successfully verified and processed, the bank will give an FD receipt confirming the booking of your new FD account.

Documents Required to Book Indian Overseas Bank FD

You need to submit the following documents when applying for an Indian Overseas Bank fixed deposit account.

1. ID proof – Aadhaar card, voter ID card, Driving licence, etc. 
2. Address proof – Aadhaar card, Voter ID card, Municipal tax receipt, Utility bills, etc. 
3. Age proof – Ration card, voter ID card, Aadhaar card, etc. 
4. Identity proof – Aadhaar card, voter ID card, etc.  
5. PAN card or Form 60/61. 
6. 2 passport-size photographs
7. Bank account details – account number, IFSC code, and branch name. 

Eligibility to Open Indian Overseas Bank FD

There are a few eligibility criteria that must be fulfilled before you can apply for a fixed deposit account with IOB. You must remember that eligibility criteria may change according to the type of FD scheme you choose to open.

1. Type of Applicant: Indian residents, HUFs (Hindu Undivided Families), Partnership firms, sole proprietorship businesses, private and public limited companies, Trusts and Societies
2. Age of Applicant: Minimum 18 years. Any minor applying with a co-applicant above 18 years of age

Types of Indian Overseas Bank FD Schemes

IOB FD rates for different schemes are different, which primarily depends on the tenure and applicant type of FD. Moreover, some schemes are available for the NRIs, and some help you save tax on your earnings.

Let us now look at the various fixed deposit options that Indian Overseas Bank provides to its customers.

1. Reinvestment Deposit

This FD plan allows you to reinvest your earned interest in your fixed deposit. It helps you to earn interest on the interest you deposited, giving you higher returns. Loans are available in this scheme for up to 90% of the principal amount and the accrued interest. Premature closure of the account is also permissible, subject to a penalty.

• Minimum Amount: ₹1,000
• Maximum Amount: No maximum amount
• Tenure: 6 months to 120 months
• Interest Rate: 4.95% to 7.25%; Senior and Super Senior citizens get additional rates of 0.50% and 0.75% respectively.
• Eligibility: Individuals, self-employed and salaried individuals, and traders.

2. IOB Eighty Plus TD

Indian Overseas Bank has designed this fixed deposit scheme for super senior citizens, individuals above 80 years of age. You can take 90% of the deposit amount as a loan either jointly (spouse only) or individually. Moreover, the applicable interest is 0.75% more than a general citizen’s in this plan.

• Minimum Amount: ₹1,000
• Maximum Amount: Below ₹1 crore
• Tenure: 6 months to 120 months
• Interest Rate: 4.75% to 8.00%
• Eligibility: Citizens above 80 years old, with valid birth date proof.

3. Vardhan Scheme

Individuals aged 60 years and above can apply for this FD scheme with IOB. An additional IOB fixed deposit interest rate of 0.50% is applicable for this category of people. A few benefits that come with this scheme include free international debit cards and collection of outstation instruments of ₹10,000 / month, subject to two instruments each month.

• Minimum Amount: ₹5000
• Maximum Amount: No maximum amount
• Tenure: 15 days to 120 months
• Interest Rate: 4.50% to 7.75%
• Eligibility: Individuals above 60 years of age.

4. Special Fixed Deposit (M-Q)

This fixed deposit scheme is ideal for individuals wanting quarterly or monthly interest payments. The monthly interest on this scheme is payable at a discounted rate. Nomination and auto-renewal facility is available and is mostly suitable for senior and super senior citizens to invest.

• Minimum Amount: ₹3,000
• Maximum Amount: No maximum amount
• Tenure: 6 months to 120 months
• Interest Rate: 4.95% to 7.25%; Senior and Super Senior citizens get additional rates of 0.50% and 0.75% respectively.
• Eligibility: Indian residents

5. Multiple Deposit Plans I & II

According to this fixed deposit plan, the interest accrued on the sum is quarterly compounded and paid together at the time of maturity. Joint accounts with two or more individuals are permissible to start this plan. Also, the depositor has the option to make as many deposits as he/she wants. 

• Minimum Amount: ₹100 (for individuals such as salaried, professional or business people) and ₹10,000 (for joint account holders, traders, societies, companies and institutions).
• Maximum Amount: No maximum limit
• Tenure: 6 months to 120 months
• Interest Rate: 4.95% to 7.25%
• Eligibility: Indian residents

6. IOB Saral

This term deposit comes with the facility of withdrawing a part of the investment and continuing the balance as FD at the same interest rate applied while booking. The IOB Saral scheme is applicable for NBRIs and minors as well. 

• Minimum Amount: ₹10,000
• Maximum Amount: No maximum amount
• Tenure: 12 months to 120 months
• Interest Rate: 6.50% – 7.25%
• Eligibility: Indian residents, Non-Resident Indians (NRIs) and minors.

7. IOB Suvidha

In this scheme, you can open a Term Deposit that comes with a Cash Credit feature and a customised chequebook. An associated CC account will be auto-generated. After Term Deposit matures, funds will get exclusively transferred to the CC account. The credit limit and drawing power become zero, leading to CC account closure on the same day.

• Minimum Amount: ₹1 lakh
• Maximum Amount: No maximum amount
• Tenure: 15 months to 120 months
• Interest Rate: 6.50% – 6.80%; Senior and Super Senior citizens get additional rates of 0.50% and 0.75% respectively.
• Eligibility: Individuals (NRI/ NRO included)/ Corporates and Firms/ Trust/ HUF/ PSUs/ Societies.

8. Tax Saver Deposit Scheme

The Indian Overseas Bank Tax Saver Deposit plan offers tax advantages under Section 80C of the Income Tax Act of 1961. Under this arrangement, you can claim a deduction of up to Rs. 1,50,000 on the amount invested in the FD.

• Minimum Amount: ₹10,000
• Maximum Amount: ₹1,50,000 (per year)
• Tenure: 5 years to 10 years
• Interest Rate: 6.50%; Senior and Super Senior citizens get additional rates of 0.50% and 0.75%, respectively.
• Eligibility: Individuals/ HUF/ Minors

9. NRO Tax Saver Deposit Scheme

This tax saving scheme is applicable to Non-Resident Indians (NRIs) wanting to open a fixed deposit account with Indian Overseas Bank. You can avail a tax deduction of up to ₹1,50,000 under Section 80C of the Income Tax Act 1961. Moreover, the Indian Overseas bank interest rate for fixed deposits is 6.50%, but no additional benefits of interest are applicable for senior and super senior citizens.

• Minimum Amount: ₹10,000
• Maximum Amount: ₹1,50,000 (per year)
• Tenure:  5 years to 10 years
• Interest Rate: 6.50%
• Eligibility: NRIs

Overall, the application process for a fixed deposit account with Indian Overseas Bank is easy and hassle-free. The IOB FD interest rates are quite attractive for general, senior as well as super-senior citizens. FDs offer a guaranteed return on investment and act as tax-saving investment options. IOB FDs are highly suitable for individuals wanting to invest in a low-risk option.

However, before booking an FD, you must read the terms and conditions well and look for offers on FD to enhance your investing process.

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.