IOB FD interest rates today: 3.50% – 6.60% p.a. for regular, 4.00% – 7.10% p.a. for senior citizens; highest rate for 444 days.

Indian Overseas Bank FD interest rates currently range from 3.50% to 7.10% p.a., depending on the tenure, ranging from 7 days to 10 years and additional interest benefits for senior citizens and super senior citizens. 

The bank also provides special FD schemes such as the 444-day deposit offering relatively higher returns, along with facilities like overdrafts against FDs and multiple interest payout options. 

Continue reading for the latest Indian Overseas Bank FD rates, tenure-wise returns, premature withdrawal rules, tax implications, and FD calculator details before investing. 

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Term-Wise Indian Overseas Bank Fixed Deposit Rates

Short-Term IOB FD Interest Rates

IOB offers Short-term FD for tenures ranging from 7 days to less than 1 year. It offers an interest rate of 3.50% to 5.50% for regular citizens and  4.00% to 6.00% for senior citizens.

Medium-term IOB FD Rates

IOB medium-term FD ranges from 1 year to 3 years, offering interest rates from 6.40% to 6.60% for regular citizens. The Bank offers 6.90% to 7.10% interest rates to senior citizens. 

Long-term IOB FD Rates

IOB long-term FDs range from 3 to 10 years tenure with interest rates of 6.10% to general citizens and 6.60% to senior citizens.

IOB 444 Days FD Interest Rate

The IOB 444-day FD interest rate offered is a special tenure scheme designed to provide relatively higher returns compared to standard short-term FDs. As of 2026, this scheme typically offers interest rates around 6.60% p.a. for general investors, with higher rates available for senior and super senior citizens. 

It serves as a balanced investment option for those looking to lock in funds for a medium duration while earning better yields. Investors can choose from different payout options such as monthly, quarterly, or cumulative interest, depending on their income needs and financial goals.

IOB FD Interest Rates for Senior Citizens

Benefits of Indian Overseas Bank Fixed Deposit Rates

Indian Overseas Bank fixed deposits offer several other benefits with stable returns. Here are some of the key benefits of Indian Overseas Bank FD rates:

• Flexible Tenure Options: Indian Overseas Bank offers FD tenures starting from 7 days up to 10 years. It allows investors to choose short-term or long-term investment plans as per their requirements.
• Higher Interest Rates for Senior Citizens: Senior citizens receive additional interest benefits over regular FD rates offered to general citizens.
• Safe and Reliable Investment: Being a public sector bank, Indian Overseas Bank offers a secure investment option with predictable returns and low market risk.
• Multiple Deposit Schemes: The bank provides various FD options including Fixed Deposits, Recurring Deposits, Reinvestment Plans, Monthly Income Schemes, and Tax-Saving Deposits to suit different financial needs.
• Flexible Interest Payout Options: Investors can choose monthly, quarterly, annual, or cumulative interest payout options depending on their income requirements.
• Loan Facility Against FD: Customers can avail loans or overdraft facilities against their fixed deposits without breaking the investment before maturity.

Eligibility to Avail Indian Overseas Bank Fixed Deposit Rates

Indian Overseas Bank fixed deposits can be opened by a wide range of individuals and entities, making them accessible for different investment needs. The eligibility criteria for availing Indian Overseas Bank fixed deposit rates include:

• Individual residents opening an FD in their own name
• Joint account holders with “Either or Survivor” or similar operating mandates
• Minors through guardians, as well as minors above 10 years who can operate the account independently
• Hindu Undivided Families (HUFs)
• Partnership firms and proprietary businesses
• Limited companies and corporate entities
• Trusts, societies, clubs, and educational institutions
• Government departments, local bodies, and statutory authorities
• Senior citizens looking to earn additional FD interest benefits

Customers are also required to complete KYC formalities and submit valid identity and address proof while opening the fixed deposit account.

Documents Required to Avail Indian Overseas Bank Fixed Deposit Rates

Opening an Indian Overseas Bank fixed deposit account requires submitting some basic KYC and identity documents. The bank may also ask for additional documents depending on the type of depositor, such as individuals, companies, trusts, or partnership firms. 

Some of the commonly required documents are mentioned below-

• PAN Card or Form 60/61 (if PAN is not available)
• Aadhaar Card
• Passport-size photographs
• Address proof such as Electricity Bill, Telephone Bill, Passport, Voter ID, or Driving Licence
• Identity proof approved by the bank
• Filled out the FD account opening form and nomination form

Additional documents may be required for entities such as partnership firms, companies, trusts, HUFs, societies, or institutions. Customers opening a fixed deposit with Indian Overseas Bank for the first time may also need to complete KYC verification and submit a Customer Profile Record form as per RBI guidelines.

Premature Withdrawal of Indian Overseas Bank Fixed Deposit

Indian Overseas Bank allows customers to withdraw their fixed deposits before maturity, subject to certain conditions and penalty charges. Premature withdrawal requests must be submitted in writing, and for joint accounts, all deposit holders are required to provide consent.

Here are the important premature withdrawal rules for Indian Overseas Bank fixed deposits:

• No interest is payable if deposits below ₹15 lakh are withdrawn before completing 15 days from the deposit or renewal date or deposit of ₹15 lakh and above if withdrawn before 7 days.
• For deposits up to ₹5 lakh that complete the minimum required period, the bank pays the applicable interest rate for the actual tenure completed without any foreclosure charges. However, additional senior citizen interest benefits are not applicable in case of premature closure.
• For deposits above ₹5 lakh, the bank charges a penalty of 1% on the applicable interest rate for the actual period the FD remained with the bank. Additional interest offered on senior citizen and bulk deposits is also not payable on premature withdrawal.

Investors should compare the penalty charges and revised returns carefully, as early withdrawal before prematurely withdrawing an Indian Overseas Bank FD may reduce the overall interest earnings.

IOB Overdraft Against Fixed Deposits

Indian Overseas Bank (IOB) allows customers to avail overdraft facility against their fixed deposits without prematurely closing the deposit account. Depositors can use their term deposits as collateral security to obtain overdrafts from the branch where the deposit is maintained. This helps customers meet urgent financial needs while continuing to earn interest on their fixed deposits.

Customers should contact the nearest IOB branch to understand the latest overdraft eligibility and applicable charges before applying.

Tax on Indian Overseas Bank Fixed Deposit Interest

Tax on FD interest earned from fixed deposits is subject to taxation if the total interest income in a financial year exceeds ₹1,00,000 for a senior citizen (₹50,000 for regular citizens).

The interest earned on Indian Overseas Bank fixed deposits is taxable as per the depositor’s applicable income tax slab. Under Section 194A of the Income Tax Act, the bank deducts TDS (Tax Deducted at Source) on FD interest once the total interest earned crosses the prescribed limit during a financial year.

If the depositor has submitted a valid PAN card, 10% TDS and if not updated 20% will be deducted. Depositors whose total taxable income falls below the taxable threshold can avoid TDS deduction by submitting Form 15G or Form 15H to the bank, subject to eligibility conditions.

Example 1: Regular citizen with ₹1 lakh at 6.60% – how much annual interest and TDS?

• Deposit amount: ₹1,00,000
• Interest rate: 6.6% per annum

Annual Interest Earned: ₹6,600

TDS applies only if the total FD interest is more than ₹50,000 in a financial year for regular citizens (Section 194A). Since 6600 is less than ₹50000, TDS will not be deducted.

Example 2: Senior citizen with ₹20 lakh at 7.1% – when does TDS actually apply?

• Deposit amount: ₹20,00,000
• Interest rate: 7.1% per annum

Annual Interest Earned: ₹1,42,000

10% TDS will be deducted as the amount exceeds the exempted limit of 1,00,000.

TDS: 1,42,000 * 10%= 14200

Deposits such as Reinvestment Deposit Plans (RDP), Cash Certificates, Multiple Deposit Accounts, and Multiple Investment Schemes, TDS may be deducted on accrued interest during the financial year, even if the interest is not withdrawn immediately. The bank also issues Form 16A as proof of TDS deduction for income tax filing purposes.

Comparison Between FD Rates of IOB and Other Banks

Indian Overseas Bank FD Calculator

Calculate returns on your Indian Overseas Bank fixed deposit using the IOB FD Calculator below:

Why Should You Book FD with Stable Money?

Booking a fixed deposit with Stable Money’s partner banks and NBFCs does not mandate opening a savings account. Moreover, you can earn higher interest rates up to 8.30% to increase your interest income from fixed deposits. 

Once the FD booking is completed, you will receive a certificate of fixed deposit from the partner bank. Plus, all your fixed deposits will be insured under DICGC (Deposit Insurance Credit Guarantee Corporation) up to ₹5 lakh as per Reserve Bank of India guidelines.

Download the Stable Money App to book an FD at a higher rate now