Indian Overseas Bank FD Interest Rates 2026
Indian Overseas Bank offers fixed deposits from 7 days to 10 years at 3.50% – 6.60% for regular customers and up to 7.10% for senior citizens. Public-sector bank headquartered in Chennai.
Rate card effective 15 May 2026 · Checked 30 September 2026IOB fixed deposit at a glance
IOB’s best rate for regular depositors is in the 444 days bucket. A plain 1-year FD earns 6.50% and a 5-year FD 6.10%, so longer is not better here — the bank pays less for 5 years than for 1 year.
IOB FD interest rates — full rate card
Domestic term deposits below ₹3 crore, effective 15 May 2026. Highlighted rows are the best-paying buckets.
| Tenure | General (p.a.) | Senior citizen (p.a.) | ₹1 lakh earns in 1 yr* |
|---|---|---|---|
| 7 – 14 days | 3.50% | 4.00% | ₹3,500 (simple) |
| 15 – 29 days | 3.50% | 4.00% | ₹3,500 (simple) |
| 30 – 45 days | 3.50% | 4.00% | ₹3,500 (simple) |
| 46 – 60 days | 4.00% | 4.50% | ₹4,000 (simple) |
| 61 – 90 days | 3.00% | 3.50% | ₹3,000 (simple) |
| 91 – 120 days | 3.50% | 4.00% | ₹3,500 (simple) |
| 121 – 179 days | 2.90% | 3.40% | ₹2,900 (simple) |
| 180 – 269 days | 4.50% | 5.00% | ₹4,500 (simple) |
| 270 days – <1 year | 5.50% | 6.00% | ₹5,614 |
| 1 year | 6.50% | 7.00% | ₹6,660 |
| 1 – 2 years (excl. 444 days) | 6.40% | 6.90% | ₹6,555 |
| 444 days | 6.60% | 7.10% | ₹6,765 |
| 2 – 3 years | 6.40% | 6.90% | ₹6,555 |
| 3 years & above | 6.10% | 6.60% | ₹6,241 |
* Interest for a full year at that rate with quarterly compounding (simple interest shown for buckets below 6 months). Source: www.policybazaar.com, compiled 27 September 2026. Always confirm on the bank’s website — rates can change without notice.
Special FD schemes
| Scheme | Tenure | General | Senior |
|---|---|---|---|
| 444 Days | 444 days | 6.60% | 7.10% |
| Green Deposit | 999 days | 6.50% | — |
How much will your money grow?
| Tenure | Rate (general / senior) | ₹1 lakh becomes | ₹5 lakh becomes | ₹5 lakh (senior) |
|---|---|---|---|---|
| 1 year | 6.50% / 7.00% | ₹1,06,660 | ₹5,33,301 | ₹5,35,930 |
| 2 years | 6.40% / 6.90% | ₹1,13,540 | ₹5,67,701 | ₹5,73,313 |
| 3 years | 6.10% / 6.60% | ₹1,19,916 | ₹5,99,578 | ₹6,08,497 |
| 5 years | 6.10% / 6.60% | ₹1,35,351 | ₹6,76,753 | ₹6,93,614 |
Cumulative FD, quarterly compounding, before tax. “—” means the published card has no slab for that exact tenure.
IOB FD calculator
Pre-filled with IOB’s best rate and tenure. Change the amount, rate or tenure, or pick another bank to compare.
IOB FD rates for senior citizens
Resident Indians aged 60 or more get 0.5% extra at the best tenure (444 days). Senior citizens also enjoy a ₹1 lakh TDS threshold and a deduction of up to ₹50,000 on deposit interest under Sec 80TTB (old regime).
| Tenure | Senior rate | Monthly income on ₹10 lakh | Quarterly income on ₹10 lakh |
|---|---|---|---|
| 1 year | 7.00% | ₹5,799 | ₹17,500 |
| 2 years | 6.90% | ₹5,717 | ₹17,250 |
| 3 years | 6.60% | ₹5,470 | ₹16,500 |
| 5 years | 6.60% | ₹5,470 | ₹16,500 |
Compare with SCSS (8.2%) and senior FD rates at other banks →
Rules, charges & services
| Feature | IOB FD |
|---|---|
| Minimum deposit | As per bank |
| Premature withdrawal | Charges apply as per scheme (% not stated) |
| Payout options | Cumulative (quarterly compounding, paid at maturity) or monthly / quarterly interest payout |
| Loan / overdraft against FD | Usually up to 90% of the deposit at FD rate + 1% to 2% (not on tax-saver FD) |
| Nomination | Up to 4 nominees — simultaneous or successive (from 1 Nov 2025) |
| On maturity | Auto-renew for the same tenure at the prevailing rate, or credit to savings; unclaimed matured deposits earn the lower of savings rate and contracted rate |
| Deposit insurance | DICGC up to ₹5 lakh per depositor across all IOB branches |
Tax on IOB FD interest
| Point | Rule |
|---|---|
| Taxability | Added to income, taxed at slab rate (“income from other sources”) |
| TDS | 10% once interest from IOB exceeds ₹50,000 in a year (₹1 lakh for 60+); 20% without PAN |
| Avoid TDS | Submit Form 121 (earlier 15G/15H) if your tax liability is nil |
| Tax-saver FD | 5-year lock-in; up to ₹1.5 lakh deductible (80C / Sec 123, old regime) |
| Cumulative FD | Interest accrues and is taxable every year, not only at maturity |
How to open a IOB FD
- Online (existing customers)Log in to IOB net banking or the mobile app → Deposits → Open Fixed Deposit. Choose amount, tenure, payout and nominee, then confirm with OTP.
- New customersOpen a savings account with video KYC or at a branch, then book the FD. Some banks allow an FD without a savings account at the branch.
- At a branchFill the term-deposit form, attach KYC and pay by cheque/transfer. You get an FD advice/receipt.
- Maturity instructionChoose auto-renewal or credit to account; update it any time before maturity.
Documents
- PAN (or Form 60) — mandatory to avoid 20% TDS
- Aadhaar or other officially valid document for address
- Recent photograph (branch); senior citizens: age proof for the higher rate
IOB vs other public sector banks
| Bank | Highest | 1 year | 3 years | 5 years | Senior (highest) |
|---|---|---|---|---|---|
| Bank of Baroda | 6.75% | 6.25% | 6.25% | 6.30% | 7.25% |
| Bank of India | 6.70% | 6.50% | 6.70% | 6.00% | 7.45% |
| Indian Bank | 6.65% | 6.10% | 6.15% | 6.00% | 7.15% |
| Punjab National Bank | 6.60% | 6.25% | 6.30% | 6.10% | 7.10% |
| Canara Bank | 6.60% | 6.25% | 6.25% | 6.25% | 7.10% |
| Indian Overseas Bank | 6.60% | 6.50% | 6.10% | 6.10% | 7.10% |
| Union Bank of India | 6.55% | 6.20% | 6.10% | 6.00% | 7.05% |
| Bank of Maharashtra | 6.55% | 6.20% | 5.25% | 5.00% | 7.05% |
| State Bank of India | 6.45% | 6.25% | 6.30% | 6.05% | 7.05% |
| Central Bank of India | 6.30% | 6.20% | 6.00% | 6.00% | 6.80% |
Frequently asked questions
What is the highest FD interest rate at Indian Overseas Bank?
Indian Overseas Bank pays up to 6.60% p.a. to regular depositors (444 days) and up to 7.10% to senior citizens (444 days), as per its rate card effective 15 May 2026.
What is IOB’s 1-year FD rate?
For exactly one year the rate is 6.50% for general customers and 7.00% for senior citizens. ₹1 lakh grows to about ₹1,06,660.
How much will ₹1 lakh earn in a 5-year IOB FD?
At 6.10% compounded quarterly, ₹1 lakh becomes about ₹1,35,351 in 5 years (senior: ₹1,38,723 at 6.60%), before tax.
What is the minimum amount for an FD at IOB?
The minimum deposit depends on the channel; check with the bank. Deposits of ₹3 crore and above are treated as bulk deposits with different rates.
What is the penalty for breaking an FD early?
IOB’s premature withdrawal penalty: Charges apply as per scheme (% not stated). Interest is paid at the rate applicable for the period the deposit actually ran, minus the penalty. Tax-saver FDs cannot be closed before 5 years.
Does IOB offer a tax-saver FD?
Yes, like all banks it offers a 5-year tax-saver FD; the rate usually equals its regular 5-year rate. The deduction is available only in the old regime.
Is my FD in Indian Overseas Bank safe?
Indian Overseas Bank is a public sector bank regulated by the RBI. Deposits are insured by DICGC up to ₹5 lakh per depositor (principal + interest, all branches combined).
Is TDS deducted on IOB FD interest?
Yes, 10% TDS applies when your total interest from IOB crosses ₹50,000 in a financial year (₹1 lakh for senior citizens). Submit Form 121 (earlier 15G/15H) if your tax liability is nil.
Rates are compiled from Indian Overseas Bank’s published rate card and reputable aggregators for information and comparison only. FinancePortal is not affiliated with the bank. Confirm the current rate with the bank before investing.