Overview of Indian Overseas Bank Fixed Deposit (FD)
IOB offers retail depositors attractive fixed-income savings solutions in the form of fixed-term deposits which are designed to cater to a variety of investment needs.
The attractive and competitive rates of interest offered under the banks FD schemes ensure maximisation of returns on depositors' savings held with the bank.
Flexibility in tenures and payout options allow for optimal trade-offs between liquidity and returns.
Types of Fixed Indian Overseas Bank Fixed Deposit Schemes
Indian Overseas Bank offers a variety of fixed deposit schemes which can be chosen by customers depending upon their preferences and needs. These are:
- Fixed Deposit
- Floating Rate Deposit
- Tax-Saver Scheme
General features of Indian Overseas Bank fixed deposits
Listed below are some of the key differentiating features of fixed deposit schemes by Indian Overseas Bank:
- Extremely attractive interest rates
- Nomination facility for deposit schemes
- Pre-closure available as per bank guidelines
- Loans can be availed against fixed deposit funds; up to 90% of the fixed deposit amount
- Floating rate of interest is available on certain deposits
- Replacement of stolen or destroyed deposit receipts
Features of IOB Fixed Deposit
This is a standard fixed deposit scheme which includes depositing a lump-sum deposit amount for a particular period of time and earning interest on the same. This interest can be cumulative or non-cumulative.
The deposit period for this scheme ranges from 6 months to 120 months. The interest for these deposits is credited half-yearly. The minimum deposit amount for this scheme is ₹ 1000.
Features of IOB Floating Rate Deposit
The Floating Rate Deposit scheme, as the name suggests, is a slight variation of the regular fixed deposit scheme wherein the interest rate offered is floating instead of fixed i.e., rates are reset every six months a year.
The deposit period ranges from 3 years to 10 years. The minimum deposit amount accepted is Rs.1 lakh and thereby in multiples of Rs.10,000. There is, however, no upper limit to the maximum amount that can be deposited. Premature closure is chargeable.
Features of IOB Tax Saver Scheme
This scheme is offered to those looking to save on tax by investing funds in a fixed deposit. This scheme features deposit periods of 5 years to 10 years and a maximum of Rs.1.5 lakhs is accepted as deposit from a single entity in one financial year.
A special rate of 5.20% p.a. is offered on this scheme while senior citizens enjoy a rate of 5.70% per annum on the Tax Saver scheme.
Indian Overseas Bank Term Deposit Interest Rates
Indian Overseas Bank offers attractive interest rates on tenures ranging from 7 days to 3 years and above. Senior citizens are offered 0.50% additional rate of interest. Effective from 9 November 2020, the IOB fd interest rates for deposits below Rs.2 crore range from 3.40% p.a. to 5.20% p.a.
Eligibility Criteria for Indian Overseas Bank Fixed Deposit Schemes
To be eligible to hold funds under a fixed deposit scheme from Indian Overseas Bank, you need to be any of the following entities:
- A salaried person
- Small trader
- Rural saver
- Professionals & Self-employed
Top Bank FD
- SBI Bank FD
- HDFC Bank FD
- Axis Bank FD
- Post Office FD
- Senior Citizen FD
- Canara Bank FD Rates
- Kotak Bank FD
- Yes Bank FD
- Standard Chartered Bank FD
- Bank of Baroda FD
- PNB FD
- IDFC Bank FD
- IDBI Bank FD
- Indian Bank FD
- Union Bank FD
- Bank of India FD
- Central Bank of India FD
- Shriram City FD
- LIC Housing FD
- Mahindra Finance FD
- Bandhan Bank FD
- KTDFC FD
- J & K Bank FD
- Federal Bank FD
- Bank of Maharashtra FD
FAQs on Indian Overseas Bank Fixed Deposit
- What is the minimum amount required to open an Indian Overseas Bank fixed deposit?
The minimum amount needed to open a fixed deposit with Indian Overseas Bank depends upon the deposit scheme being availed. However, the minimum amount for most schemes is Rs.1000.
- What is the maximum amount accepted in an FD account with Indian Overseas Bank?
Indian Overseas Bank has not put any limit to the maximum deposit amount for fixed deposit schemes. However, schemes like Tax Saver Scheme, accept only up to Rs.1,50,000 from a single entity in a particular financial year.
- What is the minimum and maximum deposit tenure offered by Indian Overseas Bank?
Indian Overseas Bank offers a minimum deposit tenure of 6 months and the maximum allowed deposit tenure is 120 months or 10 years for fixed deposit schemes offered by the bank.
- How do I open a fixed deposit account with Indian Overseas Bank?
Customers can open a FD account with IOB by visiting any of its branches. A duly filled application form along with the required KYC documents and cheque or demand draft for the amount to be deposited is required to be submitted.
- Are deposit schemes from Indian Overseas Bank taxable?
Yes. Interest rates on IOBs fixed deposits are taxable under two categories i.e., where PAN details have been submitted and where PAN details have not been submitted.
Where interest earned in a financial year is equal to or more than Rs.5000 in a year, the bank will deduct TDS of 10% on the total interest. However, if PAN details have not been provided then TDS is deducted at 20% on total interest.
- Can a loan be availed against fixed deposit funds that I hold with Indian Overseas Bank?
Yes. Loans can be availed against fixed deposits at IOB; these loans can be availed for a maximum amount of 90% of the fixed deposit amount.
- Does Indian Overseas Bank offer special rates to senior citizens?
Yes. Senior citizens are offered interest rates that are 0.50% higher than regular FD rates.
- Will IOB issue a credit card against my fixed deposit account?
No. Currently, Indian Overseas Bank does not provide credit cards against fixed deposits.
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