Indian Overseas Bank RD Interest Rates 2026
Save a fixed amount every month with a IOB recurring deposit. RD rates go up to 6.60% for regular customers and 7.10% for senior citizens, with instalments from ₹50. Public-sector bank headquartered in Chennai.
Checked 30 September 2026IOB recurring deposit at a glance
Have a lump sum instead? IOB FD rates go up to 6.60% →
IOB RD interest rates
| Tenure | General (p.a.) | Senior citizen (p.a.) |
|---|---|---|
| 180 – 269 days | 4.75% | 5.25% |
| 270 days – <1 year | 5.50% | 6.00% |
| 1 year | 6.50% | 7.00% |
| >1 year – <2 years | 6.40% | 6.90% |
| 444 days | 6.60% | 7.10% |
| 2 years – 3 years | 6.40% | 6.90% |
| Above 3 years – 10 years | 6.10% | 6.60% |
Source: www.policybazaar.com. Confirm with the bank before opening.
What your monthly savings will become
| Tenure | Rate (general / senior) | ₹2,000 / month | ₹5,000 / month | ₹10,000 / month |
|---|---|---|---|---|
| 1 year | 6.50% / 7.00% | ₹24,857 | ₹62,143 | ₹1,24,286 |
| 2 years | 6.40% / 6.90% | ₹51,316 | ₹1,28,291 | ₹2,56,582 |
| 3 years | 6.40% / 6.90% | ₹79,524 | ₹1,98,811 | ₹3,97,621 |
| 5 years | 6.10% / 6.60% | ₹1,40,496 | ₹3,51,239 | ₹7,02,478 |
General rate, quarterly compounding, before tax. “—” = no published slab for that exact tenure.
IOB RD calculator
Rules & charges
| Feature | Details |
|---|---|
| Minimum instalment | ₹50 |
| Tenure | 6 months to 120 months |
| Missed / late instalment | Nominal penalty for late instalments (rate not stated) |
| Premature closure | Allowed; 0.5%-1% penalty, interest recalculated for actual tenure |
| Loan against RD | Usually available up to 80%–90% of the balance |
| Nomination | Up to 4 nominees (from 1 Nov 2025) |
| Deposit insurance | DICGC up to ₹5 lakh per depositor (with other deposits at IOB) |
Tax on IOB RD
| Point | Rule |
|---|---|
| Taxability | Interest taxed at slab rate every year |
| TDS | 10% once FD + RD interest from IOB exceeds ₹50,000 a year (₹1 lakh for 60+); 20% without PAN |
| Avoid TDS | Submit Form 121 (earlier 15G/15H) if your tax is nil |
| Deduction | No 80C; seniors can claim up to ₹50,000 under 80TTB (old regime) |
How to open a IOB RD
- OnlineNet banking or mobile app → Deposits → Open Recurring Deposit. Choose instalment, tenure, debit date and nominee.
- BranchFill the RD form with KYC and give a standing instruction from your savings account.
- Set auto-debitSchedule the debit a day after salary credit to avoid missed instalments.
Documents
- PAN or Form 60
- Aadhaar / other address proof
- Age proof for senior citizen rate
Compare IOB with other banks
| Bank | Highest | 1 year | 5 years | Min. instalment |
|---|---|---|---|---|
| Bandhan Bank | 7.25% | 7.00% | 5.85% | Rs 100/month, multiples of Rs 1 |
| YES Bank | 7.00% | 6.65% | 6.75% | Rs 1,000/month |
| IndusInd Bank | 7.00% | 6.75% | 6.65% | ₹1,000 |
| Tamilnad Mercantile Bank | 7.00% | 6.80% | 6.70% | — |
| Dhanlaxmi Bank | 7.00% | 6.25% | 6.50% | Rs 1,000/month, multiples of Rs 500 |
| Saraswat Co-operative Bank | 7.00% | 6.60% | 7.00% | ₹500 |
| South Indian Bank | 6.80% | 6.25% | 5.70% | ₹100 |
| Federal Bank | 6.75% | 6.25% | 6.40% | Rs 50/month, multiples of Rs 10 |
| Indian Overseas Bank | 6.60% | 6.50% | 6.10% | ₹50 |
Frequently asked questions
What is the highest RD interest rate at Indian Overseas Bank?
IOB pays up to 6.60% on RDs (444 days) and up to 7.10% to senior citizens.
How much will ₹5,000 a month grow to in a IOB RD?
In 5 years at 6.10%, ₹3 lakh of instalments grow to about ₹3,51,239.
What is the minimum RD instalment at IOB?
The minimum monthly instalment is ₹50. Tenure: 6 months to 120 months.
What if I miss an instalment?
IOB: Nominal penalty for late instalments (rate not stated).
Can I close a IOB RD early?
IOB: Allowed; 0.5%-1% penalty, interest recalculated for actual tenure.
Is RD interest taxable?
Yes, at your slab rate. TDS of 10% applies when your total FD + RD interest from IOB exceeds ₹50,000 in a year (₹1 lakh for seniors).
Is my RD safe with IOB?
RDs are insured by DICGC up to ₹5 lakh per depositor per bank, including interest.
Rates compiled from the bank’s published RD / term-deposit rates for comparison only. FinancePortal is not affiliated with Indian Overseas Bank. Confirm current rates with the bank.