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Indian Overseas Bank FD Interest Rates
Indian Overseas Bank FD interest rates range from 3.50% to 6.60% p.a. and 3.50% to 7.10% p.a. for senior citizens, effective from 15th May, 2026. The tenure on deposits below ₹3 crore ranges from 7 days to 10 years.
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Maximum returns offered by:
7.4%*
(Tax-Free)
Guaranteed Plan
(By Insurance companies)4.6%*
(After Tax)
Fixed Deposit
(Offered by Banks)4.0%*
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FD Interest Rates
- Indian Overseas Bank FD Rates
IOB FD Interest Rates (Below ₹3 Crore)
The highest Indian Overseas Bank FD interest rate is 6.60% p.a. for general depositors and 7.10% p.a. for senior citizens, available on a 444-day tenure. The standard rates applicable to regular, senior and super senior citizens are given in the table below, with IOB FD rates w.e.f. 15 May 2026:
| Tenure | General Rate (p.a.) | Senior Citizen Rate (p.a.) |
| 7 - 14 days | 3.50% | 4.00% |
| 15 - 29 days | 3.50% | 4.00% |
| 30 - 45 days | 3.50% | 4.00% |
| 46 - 60 days | 4.00% | 4.50% |
| 61 - 90 days | 3.00% | 3.50% |
| 91 - 120 days | 3.50% | 4.00% |
| 121 - 179 days | 2.90% | 3.40% |
| 180 - 269 days | 4.50% | 5.00% |
| 270 Days to less than 1 Year | 5.50% | 6.00% |
| 1 Year | 6.50% | 7.00% |
| 1 Year to less than 2 Years (Except 444 Days) |
6.40% | 6.90% |
| 444 Days | 6.60% (Highest) | 7.10% (Highest) |
| 2 Years to less than 3 Years | 6.40% | 6.90% |
| 3 Years and above | 6.10% | 6.60% |
*Indian Overseas Bank FD rates w.e.f.15 May 2026*
Additional Benefits For IOB FD Rates
- Senior Citizens (Aged 60–79): Eligible for an additional 0.50% p.a. over general rates.
- Super Senior Citizens (Aged 80+): Eligible for an extra 0.75% p.a. over general rates (or +0.25% p.a. over regular senior citizen rates).
Indian Overseas Bank FD Rates (₹3 Cr. and Above)
For bulk deposits of ₹3 crore and above, IOB offers the highest rate of 6.60% p.a. for callable deposits and 6.90% p.a. for non- callable deposits on the tenure of 1 year. The applicable rates are effective from 25th September 2026:
| Tenure | Callable (p.a.) | Non-Callable (p.a) |
| 7–14 days | 4.50% | NA |
| 15–29 days | 4.50% | NA |
| 30–45 days | 4.50% | NA |
| 46–60 days | 4.50% | 5.00% |
| 61–90 days | 4.50% | 5.00% |
| 91–120 days | 5.00% | 5.50% |
| 121–179 days | 5.00% | 5.50% |
| 180–269 days | 5.00% | 5.50% |
| 270 days to less than 1 year | 5.00% | 5.55% |
| 1 year | 6.60% (Highest) | 6.90% (Highest) |
| Above 1 year to less than 2 years | 6.30% | 6.60% |
| 2–3 years | 5.80% | 6.50% |
| 3 years and above | 5.25% | NA |
*IOB FD rates w.e.f 18 August 2026.
IOB Tax Saver FD Scheme
Under Section 123 of the Income Tax Act 2025 (previously Section 80C), the IOB Tax Saver Scheme permits eligible deposits to receive a deduction of up to ₹1.50 lakh. The deposit is between ₹10,000 and ₹1.5 lakh, with a minimum duration of five years. Premature closure is not allowed until the end of the fifth year, with exceptions in certain cases.
Indian Overseas Bank Senior Citizen FD Rates
Indian Overseas Bank senior citizen FD rates range from 3.40% to 7.10% p.a., offering an extra 0.50% interest over standard accounts for depositors aged 60 to 79 years. For super senior citizens aged 80 and above, the bank provides an additional 0.75%, bringing their total rates between 3.65% and 7.35% p.a. depending on the chosen tenure.
FAQs
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1. What is the IOB 444 days FD scheme?
Ans: The IOB 444 Days FD is a special-tenure Fixed Deposit with a maturity period of 444 days. In the case of deposits less than ₹3 crore, the prevailing rate is 6.60% p.a. for general citizens, and eligible senior citizens receive an extra 0.50% p.a. -
2. Can I take a loan against an IOB fixed deposit?
Ans: Yes, eligible fixed deposits can be used as security for an IOB loan against FD or overdraft facility. The maximum loan value is 90% of the FD value of deposits with a maturity period of less than 4 years and 85% of deposits with a maturity period of 4 years or above. -
3. Does IOB have tax-saving fixed deposits?
Ans: Yes, there is the IOB Tax Saver Deposit Scheme, which has a minimum tenure of five years. Under Section 123 (Section 80C previously), eligible investors are entitled to a deduction of up to ₹1.5 lakh as per the applicable income tax regulations. The deposit is locked in for a period of five years. -
4. Does IOB offer special FD rates for seniors?
Ans: Yes, IOB offers extra interest to eligible senior citizens above the applicable regular FD rate. Senior citizens receive an additional 0.50% p.a., and super senior citizens receive an additional 0.75% p.a., with terms and conditions. -
5. How much interest for ₹1 lakh in IOB Bank?
Ans: In the case of a ₹1 lakh IOB FD, the interest rate varies between 2.90% p.a. and 6.60% p.a. for general citizens, or 3.40% p.a. and 7.10% p.a. for senior citizens, based on the tenure chosen. The highest rates of 6.60% p.a. and 7.10% p.a. apply to the 444-day FD. -
6. What are the IOB fixed deposit interest rates for 2026?
Ans: Indian Overseas Bank FD interest rates start from 3.50% p.a. to 6.60% p.a. for the general public and from 4.00% p.a. to 7.10% p.a. for senior citizens, effective from
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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar Insurance Brokers Private Limited does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
* The Guaranteed Returns are dependent on the policy term and premium term availed, along with the other variable factors. The 7.4% rate of return is for an 18-year-old, healthy male for a policy term of 20 years and premium term of 10 years with a Rs . 20,000 monthly instalment premium. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year, and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
** The Life Cover amount varies as per plan specifications. Please read the policy document for details.
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
##The Guaranteed Returns are dependent on the policy term and premium term availed along with other variable factors. 7.4% rate of return is for an 18-year-old, healthy male for a policy term of 20 years and a premium term of 10 years with ₹5,00,000 annually installment premium. All plans listed here are from insurance companies’ funds.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ