Indian Overseas Bank RD Interest Rates

What is an Indian Overseas Bank Recurring Deposit?

Indian Overseas Bank Recurring Deposit is a systematic savings plan where the customers deposit an amount of money monthly for a selected tenure and receive assured RD interest rates. It is suitable for customers who want stable growth without facing the risks of a fluctuating market. Interest is compounded quarterly, and features such as a loan against RD and premature withdrawal are available.

Indian Overseas Bank RD Interest Rates

Interest rates that are offered by Indian Overseas Bank RD on various tenures are as follows:

*ICICI Bank RD Interest Rates w.e.f. December 15th, 2025

Types of Indian Overseas Bank Recurring Deposit

Indian Overseas Bank offers two practical RD options based on deposit flexibility: Standard RD and Flexi RD. These differ primarily in how monthly contributions are structured and managed.

1. Standard Recurring Deposit

   The Standard RD encourages disciplined savings with a minimum monthly instalment of ₹50 in multiples of ₹5 thereafter, making it affordable to a large number of customers. The tenure will usually be between 6 months and 120 months, giving flexibility to short-term and long-term financial planning.

2. Flexi Recurring Deposit

   The Indian Overseas Bank Flexi RD offers the option of variable monthly deposits with a core commitment amount. It gives customers a lot of flexibility by allowing them to select a core monthly amount (minimum of ₹1,000) and deposit up to 10 times that amount per month.

   The number of deposits made per month is not limited like the Standard RD, but there is a limit of 10 times the core amount. The tenure is between 12 and 120 months, in 6-month multiples, and interest is compounded quarterly, just like other RD schemes.

Key Features of Indian Overseas Bank RD

The Indian Overseas Bank RD is a reliable savings choice with the following features:

• Loan Against RD: Customers are allowed to borrow up to 90% of the RD through Indian Overseas Bank loan against RD at a small interest margin by using the deposit without forfeiting the deposit.
• Premature Withdrawal Facility: Indian Overseas Bank RD premature withdrawal is subject to the applicable penalty (0.5% to 1%), and the interest will be recalculated based on the actual tenure held.
• Penalty for Missed Instalments: To ensure discipline, a nominal penalty is imposed for late instalment payments.
• Nomination Facility: Helps in the transfer of money to a nominee where it is required.
• Tax Deducted at Source (TDS): This interest earned is liable to tax Deduct at source (TDS) according to the existing rules of income tax regulations.

How to Open an Indian Overseas Bank Recurring Deposit

One can easily open an RD with the Indian Overseas Bank through both online and offline applications.

Online Method

Digital banking allows customers to open an RD in a convenient way:

• Log In: Log in to Indian Overseas Bank net banking or mobile banking.
• Navigate: Click on the deposits section.
• Select RD: Select “Open recurring deposit”.
• Enter Details: Enter the instalment amount and the tenure.
• Set Auto-Debit: Link your account to have automatic payments.
• Confirm: Review details and activate the RD

Offline Method

Customers can also open an RD by visiting a branch:

• Visit the Branch: Go to the nearest Indian Overseas Bank branch
• Request Form: Collect the RD application form
• Fill Details: Enter personal and deposit information
• Submit KYC: Provide required documents
• Choose Payment Mode: Select auto-debit or manual payment
• Make First Deposit: Pay the initial instalment

Eligibility Criteria for Indian Overseas Bank RD

The Indian Overseas Bank RD is a type of account meant to be utilized by individuals seeking to save a bit by bit in order to build a larger corpus over time:

• Salaried Individuals: It is suitable for customers with a regular income who would like to save systematically, monthly.
• Small Traders: Suitable for business owners with fluctuating incomes, and who desire to be disciplined in saving.
• Homemakers: Allows housewives to build frequent, small savings that can support their future financial needs.
• Students: Introduces students to the world of financial practices by having low monthly deposits.
• Rural Savers: Users in rural locations can also save by means of depositing a low instalment through available options.

Key Takeaways

Indian Overseas Bank RD interest rates range from 4.75% to 6.60% per annum for general customers and from 5.25% to 7.10% per annum for senior citizens. It has a flexible tenure period, a minimum instalment of ₹50, and other features such as a loan facility and online access, making it a reliable and disciplined saving option.