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Indian Overseas Bank Fixed Deposit

Updated 06 Dec 2023

Indian Overseas Bank (IOB) was established on February 10, 1937, by Shri. M.Ct.M. Chidambaram Chettyar, a trailblazer in multiple fields. IOB was founded with the primary aim of specialising in foreign exchange business to expand the bank's operations globally. 

 

The bank commenced operations simultaneously in Karaikudi, Chennai, and Rangoon in Burma (now Myanmar), followed by a branch in Penang, Malaysia. IOB was among the 14 major banks that were nationalised in 1969, which had a significant impact on the banking sector in India. Just before nationalisation in 1969, IOB had 195 branches in India, with aggregate deposits and advances of ₹ 67.70 Crores and ₹ 44.90 Crores, respectively.

Presently, the bank has a strong overseas presence in four countries, namely Singapore, Hong Kong, Thailand, and Sri Lanka.

Types of IOB Bank Fixed Deposits

  • Reinvestment Deposit
  • IOB 80 Plus Term Deposit
  • Vardhan – Deposit for Senior Citizens
  • Tax Saver Scheme
  • Floating Rate Deposit
  • Special Fixed Deposit (M-Q)
  • Multiple Deposit Plan I
  • Multiple Deposit Plan II
  • IOB Saral
  • IOB Suvidha
  • NRO Tax Saver
  • Unfixed Deposit

Benefits of IOB Bank Fixed Deposit Schemes

1. Convenient: Having a savings account in an IOB bank allows you to open fixed deposits easily, and they can be liquidated whenever required.

 


2. Minimum Amount: FD of less than ₹1,000 can be opened with IOB bank.

 


3. Guaranteed Returns: Returns are guaranteed because, unlike in the case of equity and mutual funds, they are not based on market highs and lows.

 


4. Liberal Payouts: IOB bank provides options for monthly or quarterly interest payouts on FD. This is beneficial for people who wish for regular income.

 


5. Tax Benefits: Under section 80C of the I-T Act, taxpayers can invest in tax-saving FD plans to reduce their tax liability.
Penalty on premature withdrawal: No penalty fees are levied on premature withdrawal of ₹5,00,000 FD.

 

6. Penalty on Premature Withdrawal: No penalty fees are levied on premature withdrawal of ₹5,00,000 FD.

Features of IOB Reinvestment Deposit

  • IOB offers a reinvestment deposit scheme that allows depositors to reinvest their interest earnings into the existing deposit, which can help increase the overall corpus.
     
  • The scheme operates with a compounding effect, as the interest on the deposit also earns interest.
     
  • The scheme has a minimum deposit amount of ₹ 1000, making it accessible to a wide range of customers. 
     
  • Depositors have the flexibility to close the FD without any penalty, which can be beneficial in case of any unforeseen circumstances.
    The scheme also offers a renewal option, allowing depositors to continue investing and growing their deposits over time.

Features of IOB 80 Plus Term Deposit

  • IOB has introduced a special scheme for Super Senior Citizens (SSC) of India, offering higher interest rates, with an additional 0.75% interest rate.
     
  • The scheme allows deposits for a flexible tenure ranging from 6 to 120 months, with a minimum deposit amount of ₹ 1,000 and a maximum deposit amount of ₹ 1 crore.
     
  • Depositors can also avail themselves of a loan against the FD of up to 90% of the deposit amount.
     
  • The scheme also provides a nomination facility for the beneficiary to receive the deposit amount in case of any unforeseen circumstances.
     
  • This scheme seems to be an ideal choice for SSCs looking to maximise their savings and financial security.

Features of IOB Vardhan – Deposit for Senior Citizens

  • IOB's Vardhan scheme is a senior citizen fixed deposit scheme that offers preferential interest rates with an additional 0.50% interest for Indian residents.
     
  • The scheme offers a flexible tenure ranging from 15 days to 120 months, with a minimum deposit amount of ₹ 5,000.
     
  • Depositors can withdraw or close the FD prematurely and also avail of a loan against the FD.
     
  • The scheme allows for single or joint account holdings, with the primary account holder being a senior citizen in case of a joint account.
     
  • Renewals are available without submitting age proofs, and depositors can also receive a free international debit card. 

Features of IOB Tax Saver Scheme

  • IOB's Tax Savings Scheme offers tax benefits for Indian residents under Section 80C of the Income-tax Act,1961. 
     
  • With flexible tenure ranging from 5 to 10 years, the scheme requires a minimum deposit of INR 10,000 and a maximum deposit of ₹1,50,000.
     
  • Interest on deposits is compounded quarterly and paid half-yearly.
    Loans against FDs and premature withdrawal options are not available. 
     
  • The scheme also includes a nomination facility for beneficiaries.
    IOB's Tax Savings Scheme is an excellent choice for individuals looking to save on taxes while securing their savings.

Features of IOB Floating Rate Deposit

  • IOB's floating rate deposit scheme offers depositors the flexibility to earn interest rates that change as per IOB's updated FD rates, reset once every six months.
     
  • The interest rates for deposits maturing between 3 to 5 years and 5 to 10 years are determined based on the last six months' daily average of the 5-year and 10-year G-Sec rates, respectively.
     
  • The scheme allows conversion from an existing fixed-rate deposit to a floating-rate deposit.
     
  • The scheme has a minimum deposit amount of ₹ 1,00,000 and offers loan facilities up to 90% of the deposit amount.
     

Features of IOB Special Fixed Deposit (M-Q)

  • IOB's monthly and quarterly interest income fixed deposit scheme is ideal for senior citizens and pensioners seeking a steady income. 
     
  • The minimum deposit amount for this scheme is ₹ 3,000, with a tenure ranging from 6 to 120 months.
     
  • Interest is paid out monthly or quarterly, making it a convenient option for those in need of regular income.

Features of IOB Multiple Deposit Plan I

  • The IOB Fixed Deposit scheme is open to a wide range of individuals, including salaried people, professionals, business people, and more. 
     
  • The scheme requires a minimum deposit amount of just ₹ 100 and in multiples of ₹ 5, making it accessible to everyone.
     
  • The investment period ranges from 6 to 120 months, giving depositors the flexibility to choose the tenure that suits them best.
     
  • The interest is paid quarterly and compounded, providing a good return on investment, and paid out at the time of maturity.

Features of IOB Multiple Deposit Plan II

  • The fixed deposit scheme is open to various types of individuals, institutions, and companies
     
  • The minimum investment amount is ₹ 10,000, and multiples of ₹ 1,000.
     
  • The investment period ranges from 6 to 120 months, with quarterly compounding of interest and payment at maturity.

Features of IOB Saral

  • IOB Saral scheme allows partial withdrawal of the deposit amount while continuing the scheme with the contracted interest rate.
     
  • With a minimum deposit of ₹ 10,000, the scheme offers a flexible tenure ranging from 1 year to 10 years.
     
  • There is no maximum limit on the deposit amount.

Features of IOB Suvidha

  • IOB Suvidha scheme provides a Cash Credit Facility as a CC account is automatically opened along with the deposit.
     
  • On maturity, the proceeds are credited only to the CC account.
     
  • The deposit amount ranges from ₹ 1,00,000 with no maximum limit
     
  • The investment can be made for a tenure between 15 months to 10 years.

Features of IOB NRO Tax Saver Scheme

  • Non-resident Indians with non-investment income and long-term capital gain are eligible for IOB's tax savings scheme.
     
  • The scheme has a minimum lock-in period of 5 years and a flexible tenure ranging from 5 to 10 years.
     
  • Depositors can invest a minimum of ₹ 10,000 and a maximum of INR 1,50,000 and qualify for tax exemption of up to ₹ 1,50,000 under section 80C of the Income-tax Act, 1961.

Features of IOB Unfixed Deposit

  • The deposit scheme has a short tenure of 7 to 179 days.
     
  • The minimum deposit amount is ₹ 50 lakhs.

Eligibility Criteria

The following are the eligibility criteria to open FD in IOB:

 

 

  • Resident individuals, including minors. Minors can invest in IOB FDs only when an adult is jointly opening an account with them.
     
  • Sole proprietorship
     
  • Partnership firms
     
  • Public and private companies
     
  • HUFs
     
  • Trusts, associations and societies

Documents Required

To open an FD account with IOB, one would need the following documents:

 

  • FD application form(for offline mode)
     
  • PAN Card
     
  • Two photographs
     
  • Identity proof (PAN Card, Aadhar Card, Passport, Driving licence, etc.)
     
  • Address proof (Electricity bills, telephone bills, Aadhar cards, bank statements)

 

Any other documents required for a sole proprietorship, partnership, companies, HUF, and trusts.

How to Open IOB Fixed Deposit Account

Fixed deposit accounts can be opened in both online and offline ways-

 

Open IOB Fixed Deposit Account Through Mobile App

 


Step 1: Download the IOB mobile application from the app store or play store and log in.
Step 2: Select the menu option under the ‘Save’ tab, and select the ‘Deposit’ option to proceed.
Step 3: Select the ‘Open Fixed Deposit’ option.
Step 4: Enter all the personal details and also enter the nominee details.
Step 5: Verify all the details and Click confirm to book a new deposit.

 

Open IOB Fixed Deposit Account Offline

 


Step 1: Visit the bank branch.
Step 2: Take the FD application form. 
Step 3: Fill in the required details and submit the necessary documents. 
Step 4: Submit the form to the branch. 
Step 5: On successfully processing the application, IOB will provide an FD receipt.

 

 

Open IOB Fixed Deposit Account Through Internet Banking

 


Step 1: Login to the IOB NetBanking account.
Step 2: Under the ‘Deposit’ tab, select the ‘Open Deposit’ option.
Step 3: The page redirects to the ‘New Deposit’ page. Click on ‘Go’ to continue, and fill in all the relevant details along with the nominee details.  
Step 4: Verify all the details and click on ‘Confirm’ to book a new fixed deposit.

How to Close IOB Fixed Deposit Account

If you have an FD with Indian Overseas Bank and you want to close it then the following are the steps to follow:

 

 

  • Visit your bank branch and get an FD account closure form from your branch and complete it accurately. After filling out the form, you must sign it and submit it to the branch manager or officer in charge. It's crucial to note that if there are joint holders on the account, all of them must sign the FD account closure form.
     
  • All account holders are required to attach a copy of their KYC documents, including a copy of their PAN, which serves as proof of identity and address, to the FD closure form. Additionally, account holders may be requested to self-attest these documents. Kindly ensure that all necessary documents are attached to the form to avoid any delay in processing your FD closure request.
     
  • Submit the FD certificate or FD receipt, the banker will verify all the documents, he/ she finds all the things are correct, then you are asked to withdraw the balance amount in your account. You may either take cash withdrawal or the bank issues a cheque/ DD in your favour, or the amount can be transferred to another account.
     

IOB Fixed Deposit Scheme Premature Withdrawal Terms and Conditions

IOB FDs can be withdrawn prematurely except for the tax-saving FD, and there is no penalty for deposits below ₹ 5 lakhs. Deposits greater than ₹ 5 lakhs incur a penalty of 1% upon premature withdrawal.

FAQs

Is the nomination facility available on IOB bank FD?

Yes, banks offer nomination facilities to FD investors keeping unforeseen circumstances in mind.

How many FDs can be opened in IOB?

There is no limit on the number of FDs, you can open as many FDs as you want.

Indian Overseas Bank FD tenure ranges from 7 days to 9 years 11 months 25 days.

What are the available FD tenures in Indian Overseas Bank?

What are senior citizen fixed deposit interest rates in Indian Overseas Bank?

The senior citizen fixed deposit interest rates in Indian Overseas Bank range between 4.8% to 7.5% p.a. for an available minimum and maximum investment duration.

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Indian Overseas Bank

Calculate Indian Overseas Bank FD Returns

₹1,00,000
6%
365
days
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Maturity Amount₹1,06,000

Understanding Fixed Deposit

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