Indian Overseas Bank Fixed Deposit (FD) Interest Rates 2025

Indian Overseas Bank (IOB), one of the oldest banks of India, offers a range of retail banking products and services to customers. One such banking product with a capital guarantee and fixed interest rate is a fixed deposit (FD) account. 

There are several types of FD schemes offered by the bank. Customers can choose the right type of FD scheme that suits their requirements.

Highlights for 2025 Fixed Deposit Scheme of Indian Overseas Bank

FD Interest Rates of Indian Overseas Bank 2025

The FD interest rates offered on a deposit below Rs.3 crore are given in the table below. The rates provided are effective from 15 July 2024.

*You can choose a deposit tenure of 7-14 days only with a minimum deposit amount of Rs.1 lakh.

**Interest rates are subject to change from time to time.

Different Types of IOB FD Schemes

1. Reinvestment Deposit

A Reinvestment deposit account allows customers to reinvest the interest earned on the deposit. That means the interest and your deposit will earn interest. This option is available when your deposit account has completed one cycle. The minimum deposit amount is Rs.1,000 and in multiples of Rs.100 thereafter.  Renewals can be done in any amount.

2. IOB Green Deposit Scheme

All deposits under the IOB Green Deposit Scheme will be utilised to finance green activities and projects and develop a green finance ecosystem in the country. The Green Deposit Scheme can be opened with a minimum amount of Rs.1,000 for retail deposits less than Rs.2 crore. The period of deposit is 999 days and it will earn an interest of 6.80% p.a. However, it is not allowed to convert the existing term deposit to the Green Term Deposit and vice-versa. 

3. IOB Eighty Plus TD

The scheme is designed for super senior citizens of the age of 80 years and above. The tenure of the deposit can range from 6 months up to 12 months. An additional interest rate of 0.75% over and above the normal FD interest rates will be applicable for the deposits under this scheme. The maximum amount of deposit must be below Rs.1 crore. A loan facility is available of up to 90% for self or jointly with a spouse only is available. 

4. Vardhan

Senior citizens above 60 years can park their funds in this account. The account can be opened either in the fixed deposit form or in the recurring deposit form. The fixed deposit tenure can range from 15 days to 120 months and from 6 months to 120 months if it is in recurring deposit form. An additional 0.50% is applicable on the card rates. A free international debit card will also be issued for this account.

5. Floating Rate Deposits

As the name suggests, a floating interest rate will be applied to the deposit. The deposit tenure for such accounts can range from 3 years up to 10 years. The five-year G Sec rate will be applied to deposits with a tenure of 3-5 years, and a 10-year G Sec rate will be applied to deposits with a tenure of 5-10 years.

6. IOB MACAD

A Motor Accident Claims Annuity (Term) Deposit Account (MACAD) is a lump sum amount placed in a term deposit account arising due to a motor accident as decided by the Court/ Tribunal. The period of deposit can range from 36 months up to 120 months. Loan or overdraft facilities will not be available.

7. Special Fixed Deposit (M-Q)

The deposit scheme targets pensioners and senior citizens and provides monthly or quarterly interest income. The minimum deposit amount is Rs.3,000, and the tenure can range from 6 months up to 120 months. The monthly interest is payable at discounted rates.

8. Multiple Deposit Plan I & II

There are two different types of accounts available under this scheme. The minimum deposit amount can range from Rs.100 to Rs.10,000 based on the variant you select. The tenure can be from 6 months up to 120 months. The interest will be compounded quarterly and will be paid out at the time of maturity.

9. IOB Saral

This reinvestment deposit scheme comes with a facility to withdraw part of the deposit and continue the balance with the contracted interest rate. A minimum sum of Rs.10,000 can be deposited without an upper limit. The minimum period of account is 12 months, and the maximum can be 10 years. 

10. IOB Suvidha

This term deposit account comes with a cash credit facility and a personalised chequebook. That is, a cash credit account will be opened alongside the term deposit account. Upon maturity of the term deposit account, the proceeds will be credited to the CC account. The minimum deposit for this account is Rs.1 lakh. The tenure can be within 15 months and 10 years.

11. Unfixed Deposit 

The tenure for this account is from 7 days up to 179 days. The minimum deposit is Rs.50 lakh. A prepayment penalty is not applicable. An additional interest rate is not applicable for staff members under this scheme.

IOB FD Special Features and Benefits

• Customers have the freedom to choose the deposit amount and tenure.
• Senior citizens can earn an additional 0.5% interest on the regular interest rates applicable to their deposits.
• Super senior citizens (aged 80 years and above) can earn an additional 0.75% on the regular interest rates applicable to their deposits.
• Competitive interest rates are offered on FD schemes.
• A separate tax-saver FD scheme is designed for NROs.
• Individuals and non-individuals have various FD scheme options.
• Interest payout and reinvestment options are available.
• Resident individuals can save income tax by investing in the Tax Saver scheme.
• Premature withdrawal and partial withdrawal facilities are available on certain schemes.
• You can take a loan against the deposit account instead of premature withdrawal for emergencies.

Basic Eligibility Criteria for IOB FD

Documents Required

Tax Benefits on IOB Fixed Deposit

Tax Saver Scheme

Resident individuals and Karta of a Hindu Undivided Family (HUF) can deposit a sum of Rs.10,000 up to Rs.1.5 lakh in this account and get income tax deductions under Section 80C of the Income Tax Act, 1961. The deposit period can be from 5 years up to 10 years. You can choose from options, such as reinvestment deposit, fixed deposit, and special fixed deposit. Interest is paid half-yearly, quarterly or monthly. Senior citizens get an additional 0.5% interest above the regular rates.

NRO Tax Saver

The scheme is designed for Non-Resident of Indian Origin (NRO). A minimum of Rs.10,000 and a maximum of Rs.1.5 lakh can be deposited in this scheme. The account includes a lock-in period of 5 years and a maximum tenure of 10 years. Customers can get an income tax exemption of up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961.

FD Interest Rate Calculator

Get a glimpse of the possible maturity amount and interest you can earn after investing a certain amount in a term deposit account using ClearTax FD Calculator.

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