Indian Overseas Banks comes with multiple fixed deposit options with varying interest rates for different tenures, ensuring attractive returns for investors. The interest rates on Indian Overseas Bank FD are higher than their savings accounts. One can easily invest in Indian Overseas Bank FD online and offline channels, with a minimal investment requirement of just INR 1,000. This article provides a detailed overview of IOB FDs, covering their types of schemes, features and interest rates.
Key Features of Indian Overseas Bank FD
- Tenure Options: The Indian overseas bank fixed deposit offers a wide range of tenure options, starting from as short as 7 days to as long as 10 years. This flexibility allows customers to choose a tenure that suits their financial goals and requirements.
- Nomination Facility: IOB provides a nomination facility, allowing customers to nominate a beneficiary for their FD account. This ensures that in the event of the account holder’s unfortunate demise, the nominated person can easily claim the funds without legal complexities.
- Loan Facility: IOB offers a loan facility against the FD account, wherein customers can avail up to 90% of the principal amount as a loan. This feature provides financial liquidity to the account holder without breaking the FD prematurely.
- Interest Payment Frequency: The Indian Overseas Bank FD interest is provided half-yearly. The account holder will receive the accrued interest every six months until the FD matures.
- Senior Citizen Benefit: Senior citizens are offered an additional benefit through higher Indian Overseas Bank FD rates. The highest Indian overseas bank senior citizen fixed deposit rate, which ispaid to them is 6.50% p.a. for a tenure of 1,000 days.
- Minimum Deposit Amount: The minimum deposit amount required to open an FD account with IOB is INR 1000. This low entry point makes it accessible to many customers, including those with modest savings.
- Competitive Interest Rates: Apart from offering attractive interest rates on long-term deposits, IOB also provides competitive rates on short-term deposits. This caters to customers who prefer short-term investments for their liquidity needs.
Various Indian Overseas Bank FD Schemes
|Scheme Name||Tenure||Minimum Deposit Amount||Maximum Deposit Amount||Interest Type||Loan against FD||Special Features|
|Reinvestment Deposit||Flexible||INR 1000||No maximum limit||Compounded||Not available||Reinvest interest; No penalty for closing FD|
|IOB 80 Plus Term Deposit||6 months to 120 months||INR 1,000||INR 1 crore||Compounded||Up to 90% of the deposit amount||For Super Senior Citizens (above 80 years); Extra 0.75% interest|
|Vardhan – Deposit for Senior Citizens||15 days to 120 months||INR 5,000||No maximum limit||Compounded||Available||Preferential interest for Senior Citizens (additional 0.50%)|
|Tax Saver Scheme||5 years to 10 years||INR 10,000||INR 1,50,000||Compounded quarterly||Not available||Tax benefits under section 80C of the Income Tax Act|
|Floating Rate Deposit||3 years to 10 years||INR 1,00,000||No maximum limit||Floating interest rates||Up to 90% of the deposit amount||Interest rates reset every six months|
|Special Fixed Deposit (M-Q)||6 months to 120 months||INR 3,000||No maximum limit||Monthly and quarterly interest||Not available||Suitable for senior citizens and pensioners|
|Multiple Deposit Plan I||6 months to 120 months||INR 100 (in multiples of INR 5)||No maximum limit||Quarterly compounding||Available||Eligible for individuals, professionals, and business people|
|Multiple Deposit Plan II||6 months to 120 months||INR 10,000 (in multiples of INR 1,000)||No maximum limit||Quarterly compounding||Available||Eligible for individuals, institutions, companies, etc.|
|IOB Saral||1 year to 10 years||INR 10,000||No maximum limit||Compounded||Not available||Withdraw part of the deposit amount and continue with the interest|
|IOB Suvidha||15 months to 10 years||INR 1,00,000||No maximum limit||Compounded||Not available||Comes with cash credit facility; Proceeds credited to CC account|
|IOB NRO Tax Saver||5 years to 10 years||INR 10,000||INR 1,50,000||Compounded||Not available||Tax exemption up to INR 1,50,000 under section 80C|
|IOB Unfixed Deposit||7 days to 179 days||INR 50 lakhs||No maximum limit||Simple interest||Not available||Short-term deposit option|
Eligibility Criteria for Availing an IOB FD
- Resident Individuals: Any individual who is a resident of India, including minors, can open an FD account with IOB. For minors, having an adult acting as a joint account holder is essential.
- Sole Proprietorship: Sole proprietorships are businesses owned and operated by a single individual and are eligible to open FD accounts with IOB.
- Partnership Firms: Partnership firms, which are businesses formed by two or more individuals as partners with a mutual understanding to share profits and losses, are eligible for opening FD accounts with IOB.
- Public and Private Companies: Both public and private companies registered under the Companies Act are eligible to open FD accounts with Indian Overseas Bank.
- HUFs: HUFs, a legal entity comprising members of the same family, are eligible to open FD accounts with IOB.
- Trusts, Associations, and Societies: Trusts, associations, and societies registered and recognized by relevant authorities are eligible for opening FD accounts with Indian Overseas Bank.
Documents Required to Open an IOB FD
- FD Application Form: The applicant must complete the Fixed Deposit application form provided by Indian Overseas Bank. This form will require personal details, contact information, and the desired terms of the FD account.
- PAN Card: A self-attested copy of the applicant’s Permanent Account Number (PAN) card is mandatory for all financial transactions in India, including opening an FD account.
- Two Photographs: The applicant should affix two recent passport-sized photographs on the application form.
- Identity Proof: The applicant must submit the following identity proofs (self-attested copies) as verification — PAN card, Aadhar card, passport, driving license.
- Address Proof: The applicant is required to provide any one of the following documents (self-attested copies) as proof of residential address — electricity bill, telephone bill, Aadhar card, bank statement.
- Additional Documents (if applicable): Depending on the type of account holder, additional documents may be required for sole proprietorship, partnership, companies, HUFs and trusts.
The Indian Overseas Bank’s 1-year FD scheme currently offers a competitive annual interest rate of 6.5%.
The Indian Overseas Bank FD scheme offers a competitive interest rate of 6.5% per annum for a 5-year fixed deposit.
Indian Overseas Bank FD interest rates for senior citizens vary from 4.5% to 7.75% per annum.
For regular citizens, the current highest FD interest rate offered by Indian Overseas Bank is 7.25% per annum. However, the bank provides a higher rate of 7.75% per annum for senior citizens.
Indian Overseas Bank provides a flexible tenure range for fixed deposits, starting from as short as 7 days up to an extended period of 9 years, 11 months and 27 days.