Interest Rates
3.50% – 6.75%
Time Period
7 days to 10 years
Min - Max Amount
1,000 - No upper limit
Compounding
Quarterly
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Indian Overseas Bank (IOB), a venerable public sector institution, traces its origins to February 10, 1937, when it was founded by the visionary entrepreneur M. Ct. M. Chidambaram Chettiar in Chennai, Tamil Nadu. Established with a capital of ₹50 lakh and an initial focus on overseas banking, the bank aimed to facilitate international trade and remittances, particularly for the burgeoning Indian diaspora.
The bank's trajectory took a significant turn during India's post-independence era. Nationalised in 1969 under the Banking Companies (Acquisition and Transfer of Undertakings) Act, IOB became one of the 14 major banks brought under government control to bolster financial inclusion and economic development. This shift propelled its growth, with branches multiplying across India and abroad.
The bank has invested heavily in technology, launching initiatives like IOB e-FDR for electronic fixed deposit receipts and mobile banking apps that enable seamless transactions. Its commitment to sustainability is evident in schemes like the IOB Green Deposit, which funds eco-friendly projects.
IOB's ethos revolves around trust, innovation, and customer-centricity, encapsulated in its mission to be "a bank of the people, by the people, for the people." It plays a pivotal role in government schemes like Pradhan Mantri Jan Dhan Yojana, empowering underserved communities.
Tenure | Regular Rate (p.a.) | Senior Citizen Rate (p.a.) |
7 days to 14 days | 3.50% | 4.00% |
15 days to 29 days | 4.00% | 4.50% |
30 days to 45 days | 4.25% | 4.75% |
46 days to 90 days | 4.50% | 5.00% |
91 days to 180 days | 4.75% | 5.25% |
181 days to less than 1 year | 5.50% | 6.00% |
1 year to 389 days | 6.00% | 6.50% |
390 days to 444 days | 6.50% | 7.00% |
445 days to 999 days | 6.60% | 7.10% |
1,000 days | 6.70% | 7.20% |
1,001 days to 3 years | 6.50% | 7.00% |
Above 3 years to 5 years | 6.25% | 6.75% |
Above 5 years to 10 years | 6.00% | 6.50% |
Note: The data is as of August 29, 2025.
Tenure | Regular Rate (p.a.) | Senior Citizen Rate (p.a.) |
7 days to 14 days | 3.50% | 4.00% |
15 days to 29 days | 4.00% | 4.50% |
30 days to 45 days | 4.25% | 4.75% |
46 days to 90 days | 4.50% | 5.00% |
91 days to 180 days | 4.75% | 5.25% |
181 days to less than 1 year | 5.50% | 6.00% |
1 year to 389 days | 6.00% | 6.50% |
390 days to 444 days | 6.50% | 7.00% |
445 days to 999 days | 6.60% | 7.10% |
1,000 days | 6.70% | 7.20% |
1,001 days to 3 years | 6.50% | 7.00% |
Above 3 years to 5 years | 6.25% | 6.75% |
Above 5 years to 10 years | 6.00% | 6.50% |
Note: The data is as of August 29, 2025.
Indian Overseas Bank Fixed Deposits (FDs) stand out for their reliability and flexibility, offering depositors a secure avenue to grow savings with guaranteed returns. Key features include quarterly compounding of interest, which maximises earnings through reinvestment, and flexible tenures ranging from a mere 7 days to 10 years, accommodating both short-term liquidity needs and long-term wealth accumulation.
Benefits are equally compelling: senior citizens receive an additional 0.50% interest rate, with super senior citizens (80+) eligible for 0.75% extra under the IOB 80 Plus scheme, enhancing retirement planning. Loan facilities against FDs, up to 90% of the deposit value, provide emergency liquidity without breaking the deposit.
The cornerstone is the Regular Fixed Deposit (Term Deposit), a straightforward option for individuals and entities. With tenures from 7 days to 10 years, it allows quarterly interest payout or reinvestment for compounding benefits. Minimum deposit is ₹1,000, and it supports nomination and joint accounts. This scheme is ideal for conservative investors prioritising capital preservation, with rates up to 6.75% p.a. for general depositors.
For those seeking higher yields, the Special Fixed Deposit Schemes include tenure-specific variants. The 444-Day Special Deposit, for instance, locks in the highest rate of 6.75% p.a. (7.25% for seniors), perfect for mid-term parking of funds. Similarly, the 1,000-Day Deposit offers 6.70% p.a., appealing to long-haul planners. These are non-callable for the full term, ensuring disciplined saving.
The Tax Saver Deposit Scheme is a boon for tax-efficient investing under Section 80C of the Income Tax Act, allowing deductions up to ₹1.5 lakh annually. Locked for 5 years with a minimum ₹1,000 deposit (maximum ₹1.5 lakh), it mirrors regular FD rates—6.20% p.a. for general and 6.70% for seniors as of August 2025. Premature closure is prohibited, but the tax shield makes it worthwhile for salaried individuals aiming to reduce taxable income.
Senior citizens are catered to via the Vardhan Scheme, granting an extra 0.50% over base rates for tenures of 15 days to 120 months. Minimum ₹5,000, it supports monthly interest credits for pension-like income. Complementing this is the IOB 80 Plus Term Deposit for super seniors (80+), adding 0.75% premium, with flexible tenures up to 120 months and a ₹1,000 minimum. These schemes underscore IOB's focus on elderly financial security, often bundled with health insurance tie-ups.
NRIs have dedicated options like NRE (Non-Resident External) Fixed Deposits, repatriable with tax-free interest, and NRO (Non-Resident Ordinary) Deposits for Indian income sources, both in major currencies (USD, GBP, EUR, etc.). Rates align with domestic but offer FCNR variants with hedging against forex risks.
The innovative Floating Rate Deposit Scheme introduces dynamism, resetting rates semi-annually based on G-Sec yields (5-year for 3-5 year tenures; 10-year for longer). This shields against rate hikes, with minimum ₹10,000, suiting those anticipating economic shifts.
IOB Saral provides partial withdrawal flexibility—up to 25% after 6 months—while retaining the original rate on the balance, minimum ₹25,000. It's suited for semi-liquid needs, like education funding. IOB Suvidha integrates FD with overdraft facilities, allowing cheque book usage against the deposit, ideal for working capital without liquidation.
Indian Overseas Bank's term-wise FD rates are structured to reward longer commitments while offering entry-level options for short durations. As of August 29, 2025, short-term deposits (7-90 days) start at 3.50%-4.50% p.a. for general public, rising to 4.00%-5.00% for seniors, ideal for parking surplus cash briefly.
Medium-term (91 days-2 years) sees escalation to 4.75%-6.50% p.a., with the 444-day peak at 6.50% general/7.00% senior, balancing yield and accessibility.
Long-term (above 2 years) peaks at 6.70% for 1,000 days, tapering to 6.00% beyond 5 years, encouraging retirement corpus building. Seniors enjoy a consistent 0.50% uplift, with 0.75% for 80+, across all terms. Rates apply uniformly below ₹5 crore, with quarterly compounding enhancing effective yields, e.g., a 6.50% nominal becomes ~6.68% effective annually. This tiered approach aids laddering strategies, mitigating reinvestment risk in a falling rate environment.
| Tenure | Institution Name | Interest Rate (% p.a.) |
|---|---|---|
| 1,000 days | 6.70› |
 | 24 Months 1 Day to 36 Months | 7.10› |
 | 15 months to less than 2 years | 6.70› |
 | 12 months to less than 24 months | 7.75› |
 | 365 days/ One Year | 6.20› |
Note: The data is as of August 29, 2025
If you're an existing IOB customer with net banking access, log into the IOB portal using your user ID and password. Navigate to the "Deposits" section under "Retail Banking," then select "Fixed Deposits" and click "New Deposit." Enter details like deposit amount (minimum ₹1,000), tenure (7 days-10 years), interest payout option (monthly, quarterly, or at maturity), and nominee information. Choose the scheme, regular, tax saver, or senior-specific, and confirm the applicable rate. Download the IOB Mobile app from Google Play or App Store, log in, and follow similar steps under "Deposit Services." It supports biometric authentication for security and allows viewing maturity schedules.
Non-customers can approach any IOB branch with KYC documents (PAN, Aadhaar, address proof). Complete the FD application form, specifying amount, tenure, and mode. The branch executive will quote the rate, process the cash/cheque deposit, and issue a physical receipt. For NRIs, video KYC enables remote onboarding.
Eligibility for an IOB FD account is broad, encompassing Indian residents, NRIs, HUFs, firms, trusts, societies, and minors (via guardians). Individuals above 18 years qualify without restrictions, while seniors (60+) and super seniors (80+) access enhanced rates.
NRIs must hold valid visas; PIOs/OCIs are treated similarly. No income proof is needed for retail FDs, but bulk depositors (₹5 crore+) may require board resolutions for entities. Minors' accounts need guardian consent. Exclusions apply to politically exposed persons under AML norms, subject to enhanced due diligence. Overall, IOB's inclusive policy democratises access to secure savings.
Opening an IOB FD requires minimal documentation under simplified KYC. Identity proofs include PAN card, Aadhaar, passport, voter ID, or driving licence. Address verification accepts utility bills (gas/electricity/telephone <3 months old), bank statements, or ration cards.
For NRIs, add passport copies and visa/OCI card. Entities submit incorporation certificates, partnership deeds, or trust deeds, plus authorised signatory proofs. Seniors provide age proof (pension orders/birth certificates). Photographs (2 each) and PAN are mandatory for TDS compliance. Digital uploads suffice for online; branches accept originals for verification. This streamlined process ensures quick activation.
Interest from IOB FDs is taxable as "Income from Other Sources" under the Income Tax Act, added to total income and taxed per slab rates—up to 30% plus cess for high earners. No separate capital gains apply, but TDS kicks in if annual interest exceeds ₹40,000 (₹50,000 for seniors), deducted at 10% with PAN; 20% without.
Form 15G/H submission prevents TDS for those below exemption limits. Tax Saver FDs qualify for 80C deduction (up to ₹1.5 lakh), but interest remains taxable. NRIs face 30% TDS plus surcharge, with DTAA benefits for lower rates. Advance tax liability arises if TDS falls short. Use IOB's TDS certificate (Form 16A) for ITR filing; quarterly interest aids planning. This framework balances revenue generation with investor incentives, though consulting a CA is advisable for complex cases.
Premature closure of IOB FDs incurs no penalty for deposits below ₹5 lakh, preserving principal plus pro-rata interest. For larger amounts, a 1% deduction on applicable rate applies, except for tax saver schemes, which prohibit early withdrawal.
Apply via branch or net banking, with proceeds credited post-penalty. Notice period (7-14 days) may be required for flexi variants. This policy balances flexibility with discipline.
