Indian Overseas Bank - Fixed Deposit Rates

As of October 2026, Indian Overseas Bank offers a highest interest rate of 6.60% p.a. for general citizens and 7.10% p.a. for senior citizens on fixed deposits.

Yes, Indian Overseas Bank is a registered bank regulated by the RBI. Your deposits (up to ₹5 Lakhs per depositor) are insured by DICGC, which covers both principal and accrued interest.

The minimum tenure for a fixed deposit with Indian Overseas Bank starts from 7 Days. Longer tenures may offer higher interest rates.

Yes, Indian Overseas Bank offers an additional benefit of up to 0.50% p.a. over the general citizen rate for senior citizens (aged 60 and above).

These rates apply to domestic retail individuals making callable fixed deposits under ₹3 Crore (with premature withdrawal permitted). Deposits of ₹3 Crore and above are classified as bulk deposits and follow separate rate structures.

Yes, interest earned on fixed deposits is taxable as per your income tax slab. TDS is deducted at 10% if total interest exceeds ₹50,000 per year (₹1,00,000 for senior citizens). You can submit Form 121 (which replaced Form 15G/15H from April 2026) to avoid TDS if your total income is below the taxable limit.

Indian Overseas Bank (IOB) charges zero penalty for small deposits up to ₹15,000. Deposits between ₹15,001 and ₹5 lakh attract a 0.50% penalty, while deposits above ₹5 lakh attract a 1.00% penalty. Non-callable deposits cannot be closed prematurely.

As of October 2026, Indian Overseas Bank offers special FD rates for 444 days at 6.6% (7.1% for Seniors).