Indian Overseas Bank Fixed Deposit (FD) Interest Rates 2025
Indian Overseas Bank Fixed Deposit (FD) scheme offers attractive returns, flexible investment options and penalty-free withdrawals for deposits up to 5 lakhs. With interest rates ranging from 4.00% p.a. to 7.80% p.a., tenure ranging from 7 days to 10 years, and a minimum deposit of 1 lakh, it caters to short-term and long-term financial goals and is a reliable option for investors. Keep reading this blog to learn more about Indian Overseas Bank and its FD interest rates.
Highlights for 2025 Fixed Deposit Scheme of Indian Overseas Bank
Tenure | 5 months to 10 years. |
Senior Citizen Interest Rates | 4.50-7.80% p.a. |
Public Interest Rates | 4.00% to 7.10%. |
Highest Interest Rates for Public | 7.1% p.a. |
Highest Interest Rates for Senior Citizens | 7.80% p.a. |
Premature Withdrawal | There is no penalty for deposits up to Rs 5 lakhs. For deposits above Rs 5 lakhs, the penalty is 1% of the applicable IOB FD rate. |
Minimum Deposit Amount | Rs 1,00,000 |
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.
| Deposit Tenure | Interest Rate (% p.a.) for Regular Customers** | Interest Rate (% p.a.) for Senior Citizens** |
| 7-14 days* | 4.00 | 4.00 |
| 15-29 days | 4.50 | 4.50 |
| 30-45 days | 4.50 | 4.50 |
| 46-60 days | 4.50 | 4.50 |
| 61-90 days | 4.25 | 4.25 |
| 91-120 days | 4.75 | 4.75 |
| 121-179 days | 4.25 | 4.25 |
| 180-269 days | 5.75 | 5.75 |
| 270 days < 1 year | 5.75 | 5.75 |
| 1 year < 2 years(except 444 days) | 6.90 | 7.10 |
| 444 days | 7.30 | 7.30 |
| 2 years < 3 years | 6.80 | 6.80 |
| 3 years and above | 6.50 | 6.50 |
| IOB Tax Saver Deposit | 6.50 | 7.00 |
*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
Deposit Scheme | Tenure | Minimum Deposit | Interest Rate | Special Features |
Reinvestment Deposit | 6 months - 120 months | Rs.1,000 | Interest reinvested, earning compound interest | Renewals in any amount |
IOB Green Deposit Scheme | 999 days | Rs.1,000 | 6.80% p.a. | Funds used for green projects, conversion from other FDs not allowed |
IOB Eighty Plus TD | 6-12 months | Below Rs.1 crore | 0.75% extra for 80+ senior citizens | Loan facility up to 90% for self/spouse |
Vardhan | 15 days - 120 months (FD) 6 months - 120 months (RD)
| N/A | Extra 0.50% interest for senior citizens | Free international debit card |
Floating Rate Deposits | 3 - 10 years | N/A | Linked to Government Security rates; resets semi-annually | Interest fluctuates with market rates |
IOB MACAD | 36 - 120 months | N/A | Prevailing rates; fixed annuity payments | No loan or overdraft facility |
Special Fixed Deposit (M-Q) | 6 - 120 months | Rs.3,000 | Monthly/quarterly interest payout | Designed for pensioners & senior citizens |
Multiple Deposit Plan I & II | 6 - 120 months | Rs.100 - Rs.10,000 | Quarterly compounded interest | Two variants available |
IOB Saral | 12 months - 10 years | Rs.10,000 | Reinvestment deposit | Allows partial withdrawal while maintaining interest on remaining balance |
IOB Suvidha | 15 months - 10 years | Rs.1 lakh | Linked to cash credit | FD proceeds credited to CC account upon maturity |
Unfixed Deposit | 7 - 179 days | Rs.50 lakh | No prepayment penalty | No extra interest for staff members |
Term-wise Indian Overseas Bank FD Rates
Deposit Tenure | General Customers | Senior Citizens |
Short-Term Deposits | ||
7 days to 1 year | 4.00% - 5.75% | 4.00% - 5.75% |
Medium-Term Deposits | ||
1 - 3 years | 6.80% - 6.90% | 6.80% - 7.10% |
Long-Term Deposits | ||
3 -5 years | 6.50% | 6.50% |
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 Indian Overseas Bank FD
| Scheme | Eligibility Criteria |
| Reinvestment Deposit | The customer should have a deposit account that is about to reach the maturity date. |
| IOB Green Deposit Scheme | Resident individuals and non-individual |
| IOB Eighty Plus TD | All super senior citizens aged 80 years and above. |
| Vardhan | Individuals aged 60 years and above. |
| MACAD | Individuals, including minors through guardians, in the single name (based on court order). |
| Special Fixed Deposit (M-Q) | Senior citizens/ pensioners who want regular monthly or quarterly interest income. |
| Multiple Deposit Plan I & II | Individuals, including salaried people, professionals, business people, etc. Individuals singly or jointly with two or more persons, institutions, companies, firms, societies, traders, professionals, salaried individuals, etc. |
| NRO Tax Saver | Non-Residents of Indian Origin with income other than investment income (interest) and long-term capital gain. |
| IOB Saral | NRIs, Indian resident individuals, and minors |
| IOB Suvidha | Individuals (including NRIs/NROs), firms, corporates, PSUs, institutions, HUFs, trusts, and societies. Minor’s special deposits are not allowed under the scheme. |
| Unfixed Deposit | Individuals |
| Tax Saver Scheme | Individuals and Kartas of Hindu Undivided Families in single or joint names. |
Documents Required for Indian Overseas Bank FD
| Scheme | Documents Required |
| IOB Eighty Plus TD | Valid KYC documents containing age/ date of birth as per existing KYC policy. A birth certificate or any other valid proof containing age/ date of birth can also be accepted as proof of age. |
| Vardhan | One of the following documents: Pension payment order School leaving certificate Voters identity card LIC policy where age is admitted Birth certificate issued by a competent authority Passport Driving License |
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.
Indian Overseas Bank vs Other Banks' FD Rates
Bank Name | Regular Customers (% p.a.) | Senior Citizens (% p.a.) |
HDFC Bank | 3.00% – 7.35% | 3.50% – 7.85% |
Punjab National Bank | 4.55% – 7.30% | 5.05% – 7.80% |
Axis Bank | 3.00% – 7.20% | 3.50% – 7.70% |
City Union Bank | 5.00% – 7.50% | 5.00% – 8.00% |
Canara Bank | 4.00% – 7.25% | 4.00% – 7.75% |
Bank of Baroda | 4.25% – 7.25% | 4.75% – 7.75% |
ICICI Bank | 3.00% – 7.25% | 3.50% – 7.80% |
HSBC Bank | 2.85-7.50% p.a. | 3.35- 8.00% p.a. |
Citibank | 2.10% – 7.77% | 2.60% – 8.27% |
State Bank of India | 3.50% – 7.10% | 4.00% – 7.60% |
Indian Overseas Bank | 4.00% – 7.30% | 4.50% – 7.80% |
IDBI Bank | 3.00% – 7.00% | 3.50% – 7.50% |
Indian Bank | 2.80% – 7.25% | 3.30% – 7.75% |
IDFC First Bank | 3.00% – 7.75% | 3.50% – 8.25% |
Post Office FD | 6.90% – 7.50% | 6.90% – 7.50% |
Kotak Bank | 2.75% – 7.40% | 3.25% – 7.90% |
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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