Indian Overseas Bank FD Interest Rates 2025

What is an Indian Overseas Bank Fixed Deposit?

An Indian Overseas Bank (IOB) Fixed Deposit is a financial product where you can deposit a minimum of ₹1,000 for a fixed tenure. The interest rate is fixed at the time of booking and does not change during the deposit period. Interest can be received monthly, quarterly, annually or at maturity, depending on the chosen scheme. Premature closure is allowed (callable deposits) but may attract a penalty of up to 1%. The interest earned is taxable as per your income slab, and deposits up to ₹5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Key Features of Indian Overseas Bank Fixed Deposits

Here are some key features of IOB Fixed Deposits in 2025:

• Flexible Tenures: You can pick a tenure for your accommodation for just 7 days or rent it for as long as 10 years.
• Higher Interest for Senior Citizens: Senior Citizens can get another 0.50% per year over normal interest rates.
• Loan Against FD: A Loan Against FD allows you to borrow as much as 90% of your FD value in case of an urgent need. Interest rates on loans are lower than on personal loans.
• Tax Saving Option: You may use the IOB Tax Saving FD under Section 80C to help you save up to ₹1.5 lakhs in tax.
• Sweep-in/Sweep-out: IOB provides a sweep-in/sweep-out facility through specific accounts like the IOB Freedom Savings Account, where balances exceeding ₹50,000 are automatically transferred to a fixed deposit in multiples of ₹5,000. The funds are swept back as needed to maintain liquidity.
• Foreclosure Charges: Premature withdrawal of fixed deposits is permitted, but may attract charges depending on the deposit size:
  • Up to ₹15,000: No charge
    
    
  • ₹15,001 to ₹5 lakh: 0.50% penalty
    
    
  • Above ₹5 lakh and below ₹3 crore: 1.00% penalty
    
    
  • ₹3 crore and above (bulk deposits): 1.00% penalty

Indian Overseas Bank FD Interest Rates 2025

The following tables present the latest interest rates offered by Indian Overseas Bank (IOB) for Fixed Deposits across different deposit amounts, tenures, and schemes. 

1. IOB FD Interest Rates for Deposits Below ₹3 Crores (Callable)

   Maturity Period	General Public (% p.a.)	Senior Citizens (% p.a.)
   7 : 14 days	4.00	4.50
   15 : 29 days	4.50	5.00
   30 : 45 days	4.50	5.00
   46 : 60 days	4.50	5.00
   61 : 90 days	4.25	4.75
   91 : 120 days	4.75	5.25
   121 : 179 days	4.25	4.75
   180 : 269 days	5.75	6.25
   270 days to < 1 year	5.75	6.25
   1 year to < 2 years	6.90	7.40
   444 days (special)	7.10	7.60
   2 years to < 3 years	6.80	7.30
   3 years and above	6.50	7.00

   *Indian Overseas Bank FD interest rates w.e.f. May 13, 2025

   Note:

   • Senior Citizens get 0.50% extra; Super Senior Citizens (80+) get 0.75% extra
   

2. IOB FD Interest Rates for Deposits of ₹3 Crores and Above (Bulk Deposits)

   Maturity Period	Existing Rate (% p.a.)	Revised Rate (% p.a.)
   1 year to < 2 years	7.10	6.90
   444 days	7.30	7.10
   2 years to < 3 years	6.80	6.80
   3 years and above	6.50	6.50

   *Indian Overseas Bank FD interest rates w.e.f. May 13, 2025

   Note: Prior permission from the Treasury Department is required for deposits of ₹3 crore and above

    

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3. IOB Non-Callable FD Rates for Deposits Above ₹1 Crore

   Maturity Period	Non-Callable Rate (% p.a.)
   91 : 120 days	4.85
   121 : 179 days	4.35
   180 : 269 days	5.85
   270 days to < 1 year	5.85
   1 year to < 2 years	7.00

   *Indian Overseas Bank FD interest rates w.e.f. May 13, 2025

   Note: Non-callable FDs require a minimum deposit above ₹1 crore

How to Open an Indian Overseas Bank FD 

You can open an IOB FD either Mobile app or netbanking, or by visiting the nearest branch. Below are step-by-step procedures:

1. Online Method

   Net Banking:

   • Open your IOB NetBanking account by logging in.
   • Click on "Deposit" and then select Open Deposit.
   • Fill in the required details and nominee information on the "New Deposit" page.
   • Check all the necessary information and schedule your FD after confirmation.

   Mobile App (IOB App):

   • Go to the app store and download the IOB App.
   • Click on "Save" and then "Deposit".
   • Click on "Open Fixed Deposit".
   • Fill in personal and nominee details.
   • Go through all the details to confirm you want to book an FD.

2. Offline Process (For New or Existing Customers)

   • Go to the nearest IOB branch
   • Do KYC submission of identity and address proof
   • Download, print and fill out the Fixed Deposit Application Form.
   • Select a tenure and choose payout preference
   • Deposit the cheque or cash (as per RBI norms)
   • Get the FD receipt and acknowledgement

Required Documents for Opening an IOB FD

To open a Fixed Deposit (FD) with Indian Overseas Bank (IOB), customers need to submit a few essential documents. These include:

• Proof of Identity: Aadhaar Card, PAN Card, Passport, Voter ID, Driving Licence, as proof of Identity.
• Proof of Address: Aadhaar Card, Passport, Credit card, utility bill, or bank statement with a recent address.
• Passport-sized Photographs :Usually, two recent photos are required.
• PAN Card: For deposits above ₹50,000, the mandatory PAN Card is required (Permanent Account Number).
• Form 15G/15H: if the customer is eligible to be exempt from TDS.

These documents ensure KYC (Know Your Customer) compliance and also assist the bank in checking the ID and address of the depositor before opening the FD account.

Taxation on Indian Overseas Bank FD Interest

Interest earned on IOB Fixed Deposits is taxable under the Income Tax Act, 1961. It must be reported under “Income from Other Sources” in your income tax return. If the interest exceeds ₹50,000 in a year, IOB deducts 10% TDS for regular customers. For senior citizens, the limit is ₹1,00,000. If you don’t provide your PAN, TDS is cut at 20%. You can submit Form 15G (below 60 years) or Form 15H (60 years and above) to avoid TDS if your income is below the taxable limit. TDS is deducted when the interest is credited, not on FD maturity. Even if TDS is not deducted, you must still declare the interest and pay tax if required. If your total tax due is over ₹10,000 in a year, you also need to pay advance tax.

Key Takeaways

In 2025, Indian Overseas Bank Fixed Deposits offer interest rates of up to 7.10% for regular customers and up to 7.60% for senior citizens, depending on the chosen tenure. Tenure choices are available from 7 days up to 10 years, depending on your financial plans. It’s easy to start an FD, whether you do it online or offline, with just a small amount of paperwork. Older people can receive better rates, and Tax Saving FDs come with Section 80C benefits. Taking a loan or overdraft allowed on your FDs ensures you have money when you need it in an emergency. Customers can compare the best FD interest rates to make an informed decision.