Indian Overseas Bank FD Interest Rates

IOB FD Interest Rates for August 2026

Indian Overseas Bank FD interest rates on deposits less than ₹3 crore. 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.

IOB FD rates w.e.f 15 May 2026.

Currently, the highest interest rate on IOB FD is 6.60% p.a. for the general depositors and 7.10% p.a. for senior citizens, available for a tenure of 444 Days.

How Are IOB FD Interest Rates Decided?

The Indian Overseas Bank (IOB) sets its FD rates depending on the current interest-rate environment, the period of the deposit, the type of depositor, the type of deposit and the funding needs of the bank. Being a state sector bank, its retail FD rates are determined in the wider banking market with the rate and interest payout also varying depending on the type of FD being chosen. The major factors are.

• RBI and market interest rates: The adjustments in the policy rate and the overall market interest rates can affect the rates charged by banks on deposits. When market and funding conditions change, IOB can update its deposit rates.
• Deposit tenure: IOB has varying interest rates on deposits. Thus, the rate charged on an FD is based on the tenure chosen and not a unified rate on all deposits.
• Senior citizen benefit: Senior citizens aged 60 years and above, and super senior citizens aged 80 years and above receive an extra 0.50% p.a. and 0.75% p.a. respectively over the applicable rate, subject to the terms of IOB.
• Deposit size and category: IOB's deposit rates can also differ based on the type and size of the deposit. As an example it publishes its rules separately covering bulk deposits and non-callable deposits, and thus the rate which applies cannot be determined solely by tenure.
• Cumulative vs. non-cumulative FD: In cumulative FD, interest is earned and paid along with the principal at maturity. In non-cumulative FD, the interest is paid at a regular time e.g. on a monthly or quarterly or half yearly or annual basis.
• Special deposit products: IOB also offers deposits that have a special rate structure. As an example, its Eighty Plus Term Deposit earns an extra 0.25% p.a. on top of the senior citizen rate, making the total extra rate 0.75% p.a. on top of the applicable regular rate with respect to qualified depositors.

Indian Overseas Bank FD Rates (₹3 Cr. and Above)

For bulk deposits of ₹3 crore and above, IOB offers different interest rates for callable and non-callable deposits across various tenures. The applicable rates are given below, with IOB FD rates w.e.f. 18 August 2026:

IOB FD rates w.e.f 18 August 2026.

Currently, the highest interest rate on IOB FD is 7.00% p.a. for the general depositors as well as for senior citizens, available for a tenure of 1 year.

IOB Tax Saver FD Scheme

Under Section 123 of the Income Tax Act 2025 (previously 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 NRI FD Rates (NRE / NRO / FCNR)

The rates of IOB NRI FDs differ depending on the deposit type and tenure. The Indian Overseas Bank NRE FD Rates apply to the eligible NRI depositors, and FCNR deposits are subject to different rate systems and eligibility criteria.

1. NRE Fixed Deposit

   IOB NRE FD rates are available to Non-Resident Indians (NRIs) and eligible persons of Indian origin for deposits maintained in Indian rupees, with IOB NRE FD rates w.e.f. 15 December 2025.

   Tenure	Interest Rate (p.a.)
   1 year	6.50%
   Above 1 Year to Less than 2 Years (Except 444 Days)	6.40%
   444 Days	6.60% (Highest)
   2 Years to Less than 3 Years	6.40%
   3 Years and Above	6.10%

   IOB NRE FD rates w.e.f 15 December 2025.

   Currently, the highest interest rate on IOB NRE FD is 6.60% p.a. for the general depositors, available for a tenure of 444 Days.

2. FCNR Fixed Deposit

   FCNR deposits are available to NRIs and eligible persons of Indian origin for holding fixed deposits in specified foreign currencies. Following are the IOB FCNR FD rates, with IOB FCNR FD rates w.e.f. 15 June 2026.

   Tenure	Rate of Interest (p.a.) (w.e.f. June 15, 2026)
   3 years to less than 4 years	6.50% (Highest)
   4 years to less than 5 years	6.50% (Highest)
   5 years	6.50% (Highest)

   IOB FCNR FD rates w.e.f 15 June 2026.

   Currently, the highest interest rate on IOB FCNR FD is 6.50% p.a. for the general depositors, available for the tenure of 3 years to 5 years.

Indian Overseas Bank Senior Citizen FD Rates

Indian Overseas Bank offers an additional 0.50% as senior citizen FD rates and 0.75% p.a. to super senior citizens (aged 80+) over the applicable regular FD rate. Based on the listed rates, senior citizen FD rates range from 3.40% p.a. to 7.10% p.a., while super senior citizen rates range from 3.65% p.a. to 7.35% p.a.

Indian Overseas Bank Special FD Schemes

In addition to the regular FDs, IOB provides specialised deposit schemes such as the 999-day Green Deposit Scheme, IOB Special Fixed Deposit (M/Q) with periodic interest payments and IOB Saral where the depositor can make a partial withdrawal whilst the deposit continues to grow at the contracted rate.

• IOB Green Deposit Scheme: It is offered with a tenure of 999 days with the retail rate of 6.50% p.a. and other rates of 0.50% p.a. and 0.75% p.a. on senior and super senior citizens respectively.
• IOB Special Fixed Deposit (M/Q): This is designed for depositors who would like to receive interest on their deposits every month or quarter, with a minimum deposit of ₹3000 and a period of 6 to 120 months.
• IOB Saral: Enables the depositors to withdraw a portion of their deposit leaving the rest invested at the rate agreed upon in the contract.

Key Features of IOB Fixed Deposit

Indian Overseas Bank fixed deposits are offered with different tenures, payouts and deposit schemes to suit various needs of the customers. The main features are:

• Flexible Tenure Options: IOB offers flexible 7-day to 10-year tenures to customers allowing them to select a suitable deposit period.
• Additional Interest for Senior Citizens: Senior citizens are given an extra interest on their FDs in addition to the usual interest rate on the regular citizen accounts. Under suitable schemes, super senior citizens are given a greater additional benefit.
• Multiple FD Schemes: IOB has a variety of deposit plans, such as reinvestment deposits, special fixed deposits, tax saver deposits, Green Deposits, Vardhan, IOB Saral and other specialised deposit plans.
• Flexible Interest Payout Options: Customers can choose the available interest payout depending on the deposit scheme where the payments can be made monthly, quarterly or maturity payments.
• Loan or Overdraft Against FD: Eligible deposits may be used to secure loans or any overdraft facility under the terms and conditions of the IOB deposit scheme applied.
• Premature Withdrawal Facility: Premature withdrawal is provided on several IOB FD schemes subject to terms and charges. However, there are deposits that are liable to lock-in, such as the Tax Saver FD.
• NRI Deposit Options: IOB also offers NRE, NRO and FCNR deposits to its eligible NRI customers and RFC deposits to its eligible returning NRIs.

IOB FD Interest Rate Calculator

The IOB FD Interest Rate Calculator assists in determining the interest received and maturity value in relation to the amount deposited, the tenure and the applicable interest rate. Estimates of returns are obtained by using the dedicated IOB FD Interest Rate Calculator.