Indian Overseas Bank Fixed Deposit (FD) Interest Rates 2025

Q: What is the new FD interest rate in IOB?

As per the latest interest rates (effective from 15 July 2025), IOB offers interest rates starting from 3.50% p.a. to 6.75% for general customers and 4.00% to 7.25% for senior citizens for FDs ranging from 7 days to 3 years and above.

Q: What is the IOB 444 days FD scheme?

IOB offers an FD scheme for 444 days. This scheme provides the highest interest rate of 6.75% per annum for the general public and 7.25% per annum for senior citizens.

Q: How is the foreclosure of term deposit accounts handled by the bank?

If you wish to close an FD (term deposit) account before its maturity date, the bank will levy foreclosure charges on the deposit account. The charges vary based on the deposit amount. Below are the details on the foreclosure charges based on the deposit amount:Retail term deposits up to Rs.15,000 - NILRetail term deposits between Rs.15,001 and Rs.5 lakh - 0.50%Retail term deposits above Rs.5 lakh and below Rs.3 crore - 1.00%Bulk deposits of Rs.3 crore and above - 1.00%

Q: Can the bank staff get any additional benefits in terms of interest rate on term deposits?

The retired bank staff will get an interest rate governed by the guidelines in force when opening the term deposit account.

By Mayashree Acharya

Updated on: Jul 24th, 2025

9 min read

Indian Overseas Bank Fixed Deposit (FD) scheme offers attractive returns with flexible investment options. With interest rates ranging from 3.50% p.a. to 6.75% 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 article to learn more about Indian Overseas Bank FD interest rates.

Highlights for 2025 Fixed Deposit Scheme of Indian Overseas Bank

Tenure	7 days to 10 years
Senior Citizen Interest Rates	4.00% to 7.25% p.a.
Public Interest Rates	3.50% to 6.75%.
Highest Interest Rates for Public	6.75% p.a. (444 days)
Highest Interest Rates for Senior Citizens	7.25% p.a. (444 days)
Minimum Deposit Amount	Rs. 1,000

FD Interest Rates of Indian Overseas Bank 2025

Below are the FD interest rates offered by the Indian Overseas Bank.

IOB FD Interest Rates for Deposits Below Rs. 3 Crore

Deposit Tenure	Interest Rate (% p.a.) for Regular Customers**	Interest Rate (% p.a.) for Senior Citizens**	Interest Rate (% p.a.) for Super Senior Citizens**
7-14 days*	3.50	4.00	4.25
15-29 days	3.50	4.00	4.25
30-45 days	3.50	4.00	4.25
46-60 days	4.00	4.50	4.75
61-90 days	3.50	4.00	4.25
91-120 days	4.00	4.50	4.75
121-179 days	4.00	4.50	4.75
180-269 days	5.00	5.50	5.75
270 days < 1 year	5.50	6.00	6.25
1 year < 2 years(except 444 days)	6.60	7.10	7.35
444 days	6.75	7.25	7.50
2 years < 3 years	6.60	7.10	7.35
3 years and above	6.30	6.80	7.05

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

**The interest rates are applicable from 15 July 2025.

IOB Tax Saver Deposit Interest Rate

Deposit Tenure	Interest Rate (% p.a.) for Regular Customers*	Interest Rate (% p.a.) for Senior Citizens*
5 years	6.30	6.80

*The interest rates are applicable from 15 July 2025.

IOB NRE Term Deposits Interest Rate for Below Rs. 3 Crore

Deposit Tenure	Interest Rates (% p.a.)*
1 year < 2 years (except 444 days)	6.60
444 days	6.75
2 years < 3 years	6.60
3 years and above	6.30

*The interest rates are applicable from 15 July 2025.

IOB FCNR Deposit Interest Rates 2025

Deposit Tenure	Interest Rate (%) for USD*	Interest Rate (%) for GBP*	Interest Rate (%) for EUR*	Interest Rate (%) for JPY*	Interest Rate (%) for CAD*	Interest Rate (%) for AUD*	Interest Rate (%) for CHF*	Interest Rate (%) for NZD*	Interest Rate (%) for SGD*
1 year < 2 years	5.50	4.75	2.50	0.03	0.50	0.70	0.00	1.00	0.42
2 years < 3 years	3.20	2.10	0.15	0.05	1.60	1.00	0.00	1.20	0.89
3 years < 4 years	3.15	2.15	0.15	0.05	1.80	1.25	0.02	1.40	1.09
4 years < 5 years	3.15	2.20	0.15	0.05	1.90	1.55	0.02	1.50	1.23
5 years	3.15	2.25	0.15	0.05	1.95	1.85	0.02	1.60	1.39

*The interest rates are applicable from 15 July 2025.

IOB RFC Deposit Interest Rates 2025

Deposit Tenure	Interest Rate (%) for USD*	Interest Rate (%) for GBP*	Interest Rate (%) for EUR*	Interest Rate (%) for JPY*	Interest Rate (%) for CAD*	Interest Rate (%) for AUD*
6 months < 1 year	1.30	0.85	0.00	0.00	0.15	0.05
1 year < 2 years	5.50	4.75	2.50	0.03	0.50	0.70
2 years < 3 years	3.20	2.10	0.15	0.05	1.60	1.00
3 years	3.15	2.15	0.15	0.05	1.80	1.25

*The interest rates are applicable from 15 July 2025.

Different Types of IOB FD Schemes

Reinvestment Deposit

This deposit allows customers to reinvest the interest earned on their deposit
The period of deposit is 6 months to 120 months with a minimum deposit of Rs.1,000
Interest is compounded quarterly for these deposits

IOB Green Deposit Scheme

Under this deposit scheme, funds are used for financing green projects and developing green finance ecosystem
The period of deposit is 999 days
The minimum deposit amount is Rs.1,000
The interest rate is 6.80% p.a.

IOB Eighty Plus - Term Deposit

This scheme is for all super senior citizens aged 80 years and above
The tenure of these deposits is 6 months to 120 months
Minimum Deposit - Below Rs.1 crore
The rate of interest is 0.75% extra over the interest rate for regular customers

Vardhan

This scheme is for senior citizens above 60 years
The tenure of deposits is 15 days to 120 months for FD and 6 months to 120 months for RD
The minimum deposit amount is Rs. 5,000 for FD and Rs. 100 per month for RD
The rate of interest is 0.50% extra over the interest rate for regular customers

Floating Rate Deposits

The interest rates for these depsoits are linked to Government Security (G-Sec) rates
The tenure is 3 years to 10 years
The minimum deposit amount under the scheme is Rs. 1 lakh

IOB MACAD - Motor Accident Claims Annuity Term Deposit Account

This is a lump sum deposit scheme, as decided by the Court or Tribunal based on a court order
The period of deposit is 36 months to 120 months
The minimum deposit is based on the minimum monthly annuity payout of Rs. 1,000 for the relevant period

Special Fixed Deposit (M-Q)

This is designed for pensioners and senior citizens
The period of deposit is 6 months to 120 months
The minimum deposit amount is Rs. 3,000
The interest payment is made monthly or quarterly basis

Multiple Deposit Plan I & II

Two variants available under this scheme
The minimum deposit amount for one variant is Rs. 100 and for the other variant is Rs. Rs. 10,000
The interest rate is compounded quarterly

IOB Saral

This scheme allows partial withdrawal while maintaining interest on the remaining balance
The tenure is 12 months to 10 years with a minimum deposit of Rs. 10,000
Individuals including NRIs and minors can open this scheme

IOB Suvidha

This is a term deposit scheme with Cash Credit (CC) facility and personalised cheque book
The FD proceeds credited to CC account upon maturity
The tenure of deposits is 15 months to 10 years
The minimum deposit amount is Rs. 1 lakh

Unfixed Deposit

The tenure of this deposit is 7 days to 179 days
The minimum deposit amount is Rs. 50 lakh
There is no prepayment penalty for this scheme and 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	3.50% - 6.60%	4.00% - 7.10%
Medium-Term Deposits
1 - 3 years	6.60% - 6.30%	7.10% - 6.80%
Long-Term Deposits
3 -5 years	6.30%	6.80%

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	Individuals, traders, Self - employed persons and salaried persons.
IOB Green Deposit Scheme	Resident individuals and non-individuals.
IOB Eighty Plus TD	All super senior citizens aged 80 years and above.
Vardhan	Individuals aged 60 years and above.
IOB 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, 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 (HUFs) in single or joint names.

Documents Required for Indian Overseas Bank FD

Below documents are required to open an FD at Indian Overseas Bank:

Proof of identity, such as:
- Aadhaar card
- PAN card
- Voter's ID
- Passport
Proof of address, such as:
- Gas bill
- Telephone bill
- Electricity bill
- Voter's ID
- Driving license
- Passport
Passport size photographs and specimen signature
Trust deed in case of trusts
Certificate of commencement of business in case of business account
Birth certificate in case of IOB Eighty Plus - Term Deposit scheme
Any one of the following documents, in case of Vardhan scheme:
- Pension payment order
- School leaving certificate
- Voter's ID
- 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 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.

Related Articles:

Frequently Asked Questions

What is the new FD interest rate in IOB?

As per the latest interest rates (effective from 15 July 2025), IOB offers interest rates starting from 3.50% p.a. to 6.75% for general customers and 4.00% to 7.25% for senior citizens for FDs ranging from 7 days to 3 years and above.

What is the IOB 444 days FD scheme?

IOB offers an FD scheme for 444 days. This scheme provides the highest interest rate of 6.75% per annum for the general public and 7.25% per annum for senior citizens.

How is the foreclosure of term deposit accounts handled by the bank?

If you wish to close an FD (term deposit) account before its maturity date, the bank will levy foreclosure charges on the deposit account. The charges vary based on the deposit amount. Below are the details on the foreclosure charges based on the deposit amount:

Retail term deposits up to Rs.15,000 - NIL
Retail term deposits between Rs.15,001 and Rs.5 lakh - 0.50%
Retail term deposits above Rs.5 lakh and below Rs.3 crore - 1.00%
Bulk deposits of Rs.3 crore and above - 1.00%

Can the bank staff get any additional benefits in terms of interest rate on term deposits?

The retired bank staff will get an interest rate governed by the guidelines in force when opening the term deposit account.

About the Author

Mayashree Acharya

Senior Content Writer

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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