Indian Overseas Bank (IOB) FD Rate

With various financial services and products, Indian Overseas Bank niches in several kinds of term deposits. One of their prime products, IOB FD rates, are offered at attractive prices, making the scheme a lucrative income-generating option for many. IOB FD Interest rates are subject to change now and then and currently are being offered at a range of 3.25% to 5.85%. They have flexible tenure options for its customers as well. Get an extensive idea of how the Indian Overseas Bank Fixed Deposit rates are offered and how you can benefit from the same.

Indian Overseas Bank FD Rate Highlights

The IOB FD rate as presented by the bank’s official website suggests that they have an FD interest rate policy that ranging between 3% to 5.70%. This has also been revised for the latest applicable IOB FD rate, which ranges from 3.25% to 5.85%. This shows that the bank is creating a more convenient and revenue-generating investment plan for its customers. These IOB FD rates have been shown for an investment amount below INR 2 crores. The maximum return is possible on an investment with a maturity period longer than three years. If customers want to generate the maximum revenue, they should be prepared to keep their monetary capital parked with the bank for at least three years. The IOB fixed deposit rate for three years and above tenure is 5.85% currently. Furthermore, as the bank allows premature withdrawal, customers will have to incur certain closure charges. This can be explained as follows.

• There is no penalty for any retail term deposit, which amounts to INR 15,000. 
• In case the amount lies between INR 15,000 to INR 5 Lakhs, a 0.50% charge will be involved. 
• Furthermore, for any amount ranging from INR 5 Lakh to less than INR 2 crore, the user will have to incur a penalty of 1% of the total amount. 
• Lastly, any investment above INR 2 crore still will be a 1% cut. 

Types of Indian Overseas Bank Fix Deposit 

IOB FD scheme is a great investment tool for creating extra income for the future. Now, various customers come with an array of needs and financial dispositions. This makes them need an ideal plan to make the most of the scheme. IOB FD comes with various scheme types that suit the users in their way. Users have the provision to pick the ones that adhere to their needs in the best possible way. Here is a list of all the FD schemes offered by IOB.

• Reinvestment Deposit – Here, the customers have the provision to put the interest earned back in the deposit pool for a larger return expectation.
• Recurring Deposit – If anyone needs to make a monthly recurring contribution of their monetary capital can opt for the recurring deposit scheme. Here the IOB FD rates for the scheme are also attractive and competitive. This is ideal for salaried individuals who can make a monthly deposit without a miss.
• IOB Eightly Plus Term Deposit – IOB has devised a scheme that will benefit old-age citizens. This IOB FD plan is suitable for customers who are 80 years and above. They get specialised IOB FD rates as well.
• Education Deposit – Contribute to higher education or college tuition fees. The IOB FD rates for the education deposits are also lucrative, allowing savings for education.
• Vardhan – Just like the eighty-plus scheme, this Vardhar IOB FD scheme aims to target customers above 60.
• Tax Saver Scheme – Claim tax benefits under section 80C of the income tax act 1961 with the tax saver scheme. There will be a lock-in period of 5 years.
• Floating Rate Deposit – The IOB FD rates for floating rate deposits will be changeable and will be affected as per the applicable market rates. Here one can join the account solely or in joint with any eligible individual.
• Special Fixed Deposit M-Q – This plan offers customers a regular monthly or quarterly interest revenue. This scheme is open to all kinds of customers in terms of age group.
• Multiple Deposit Plan I & II – The multiple deposits are ideal for anyone with a regular income. To be eligible for this scheme, one has to be a salaried employee, professional, or business associate.
• NRO Tax Saver – Similar to a regular tax saver scheme, an NRO tax saver deposit aims to generate income for NRI investors while giving them tax benefits under section 80C of the Income Tax Act 1961.
• IOB Saral – This can be opted by any NRI individual or any minors jointly with their guardians.
• IOB Suvidha – This is a peculiar term deposit scheme where you can get a cash credit facility and chequebook facility. Customers will get a cash credit account set up when they opt for the IOB Suvidha.
• Unfixed Deposit – This fixed deposit account is created for individuals only. Users have the provision to pick their duration ranging from 7 days to 179 days. The minimum balance requirement will be INR 50 Lakhs.
• Flexi RD – The Flexi recurring deposit scheme is available for individuals, companies, firms, and an array of entities to which they can contribute a certain amount monthly.
• Short Deposit – Any short-term duration deposit can be set up with the help of a short-deposit plan. 

Features and Benefits of Indian Overseas Bank FDs

With a massive array of fixed deposit schemes, Indian Overseas Bank has managed to design plans that suit the needs of various investors. There is something for everyone, from the short deposit plans to the NRO tax saver plan.

Some of the recurring patterns with the IOB FD schemes are as follows:

• Loan facilities on investment collateral 
• 90% overdraft facility available with the investment
• Easy premature withdrawal facility available with the deposit scheme. There will be penalties ranging from 0.50% to 1%. 
• Senior citizens also get a specialised deposit facility with attractive IOB FD rates. There are separate products for citizens aged above 80 and citizens between 60 years to 80 years of age.
• Joint account facilities available with the IOB FD scheme. 
• Lucrative minimum deposit plans available with the IOB FD rates.
• Tax benefitting plans are also available with the IOB FD scheme. With this, customers have the provision to claim their returns up to INR 1,50,000, which is explained under the Income Tax Act of 1961. 
• Interest is compounded quarterly with the provision to choose a tenure ranging from 7 days to more than three years. The minimum and maximum tenure depend on the scheme applied. 
• Lastly, some schemes are specifically designed to meet needs, such as education loans, senior citizen funds, government-backed schemes, and much more. 

Eligibility Criteria for Indian Overseas Bank FD

Given the fact that there are many plans offered by the Indian Overseas Bank, they have a range of eligibility criteria to deliver their products and services to the right kind of customers. With that established, not only are the IOB FD rates lucrative, but they also require parameters that customers must adhere to. Here are some eligibility criteria for applying to an Indian Overseas Bank FD scheme.

• The applicant should be a citizen of India. In the case of non-residents, they must possess valid documents to support their Indian origin. 
• Individuals, companies, HUFs, partnerships firms, and other legal entities can apply for the IOB FD scheme, given they provide valid documentation to uphold their claim.
• Salaried individuals, professionals, business people, homemakers, and students can apply for the IOB fixed deposit plan. 
• In the case of the senior citizen FD scheme, the customer must meet age requirement criteria. 
• For tax savings plans, the benefits will be provided for the primary account holder in case of a joint account. 
• In the case of a minor applying the scheme, a parent or guardian must be involved to take ownership of the account.

How is the interest rate calculated on Indian overseas bank Fixed Deposit? 

Indian Overseas Bank FD rates are set by the bank’s authorities while considering the prevailing market price and the rates set by other banks. This makes the IOB FD rates both competitive and attractive for the customers. Furthermore, the customers opting for the IOB FD scheme can use the online Fixed Deposit Calculator tool to know how much they can earn from the scheme. Speaking of the calculation of the IOB FD Interest Rates, basic mathematical formulas are used. There are two ways to do this calculation. First is the simple interest calculation method. The other way is to calculate the compound interest.

For the simple interest calculation, one can use the following formula:

P x R x T / 100

This formula translates to principal multiplied by the rate of interest multiplied by duration.

For the compound interest calculation, one can use the following formula. 

A = P (1 + r / n ) n t

This translates as Amount, equivalent to the principal amount multiplied by the sum of 1 and the interest rate upon the number of compounding periods. This figure will be multiplied by the number of compounding periods and tenure. 

Tax on Indian Overseas Bank FD

The interest earned on the IOB FD rates is taxable by law. The bank is liable to deduct the appropriate tax amount from the source. However, there are ways to claim tax benefits. This can be done by converting the IOB Bank FD rates into a tax savings scheme. This way, one can legally claim a tax benefit of up to INR 1,50,000, which is applicable under Section 80C of the Income Tax Act 1961.

Indian Overseas Bank FD Minimum/ Maximum Deposit Amount

IOB FD schemes have varied minimum and maximum limits. These are as listed below:

Scheme Name	Minimum Deposit	Comments
Reinvestment Deposit	INR 1000	Can increase the investment to multiples of INR 100.
Recurring Deposit Scheme	INR 50	Can increase the investment amount by multiples of INR 5.
Vardhan scheme	INR 5000	Can increase the investment amount by multiples of INR 100 per month.
Tax Saver scheme	INR 10,000	Can invest up to INR 1,50,000 in a financial year.
A floating rate deposit	of INR 1,00,000	Can increase the investment amount to multiples of INR 10,000.
Motor Accident Claim Annuity Term Deposit	INR 1,000	There is no upper limit set
For Special Fixed Deposit M-Q	INR 3,000.	There is no specification of an upper limit.
Multiple Deposit Plan I	INR 100	Can increase the investment amount to multiples of INR 5.
Multiple Deposit Plan II	INR 10,000	Can increase the investment amount to multiples of INR 1000.
NRO tax saver account	INR 10,000	Maximum limit of INR 1,50,000
IOB Saral	INR 10,000	No upper limit set
IOB Suvidha	INR 1,00,000	No upper limit
Unfixed deposit	INR 50,00,000	—
Flexi Recurring Deposit	INR 1,000	Maximum limit of INR 1,00,000 per month

Compare Indian overseas bank Fixed Deposit Returns with Top Banks

It will be beneficial for the applicants to acquaint themselves with the prevailing market rates across some of the top banks. This comparison with the IOB Bank FD rates with other banks provides clarity on how interest rates are competitive. Customers can use an FD Calculator to compare the results based on the bank’s respective interest rates. The table below showcases the comparison of IOB Bank interest rates with some top banks, namely SBI, HDFC, IDBI, Kotak, etc.

Name of Bank	General Citizens	Senior Citizens
State Bank of India FD	2.90% to 5.65%	3.40% to 6.45%
HDFC Bank FD	2.75% to 6.10%	3.25% to 6.60%
IDBI Bank FD	2.70% to 5.75%	3.20% to 6.50%
Kotak Mahindra Bank FD	2.50% to 5.90%	3.00% to 6.40%
Punjab National Bank FD	3.00% to 6.10%	3.50% to 6.60%
Canara Bank FD	2.90% to 6.00%	2.90% to 6.50%
Axis Bank FD	2.50% to 6.05%	2.50% to 6.80%
Bank of Baroda FD	3.00% to 5.50%	3.50% to 6.50%
IDFC First Bank FD	3.50% to 6.90%	4.00% to 7.40%

How to Open an Indian overseas Bank FD Account

Indian Overseas Bank has become a highly reputed financial institution for its various financial products and services. Customers can now apply for the fixed deposit scheme offered by the bank through online means. Here is how one can apply for an IOB FD rate online.

• Go to the official website of IOB, where you can access the Internet banking portal.
• Register if you haven’t already done so. This will require you to give your basic details and register your phone number. 
• Once the account is created, log on to the portal by entering your credentials. 
• From the dashboard, you can access the Deposit section 
• Click on the open deposit option from the portal. 
• Select the type of deposit that applies to you. 
• Click on the request new deposit page option.
  Provide the details required by the portal. 
• Click on confirm. You will receive notifications from the banking site pertaining to the deposit account opening request.