Indian Overseas Bank (IOB) revises FD rates, promising up to 7.25% return on 444 days tenure effective from 10th April
2 min read . Updated: 08 Apr 2023, 02:38 PM IST
Premium- Indian Overseas Bank (IOB), a public sector lender, has modified the interest rates on fixed deposits under ₹2 crore.
Indian Overseas Bank (IOB), a public sector lender, has modified the interest rates on fixed deposits under ₹2 crore. This announcement by the bank is in line with the Reserve Bank of India (RBI) decision to keep the repo unchanged at 6.5% in its bi-monthly monetary policy meeting held on April 06, 2023. After the adjustment, Indian Overseas Bank (IOB) reduced interest rates on a variety of tenors by up to 50 bps and increased interest rates on a few tenors by up to 40 bps. Deposits that mature in 444 days now earn a maximum interest rate of 7.25% instead of the previous rate of 7%. The latest FD rates of IOB will be in force from 10th April 2023.
IOB FD Rates
IOB reduced interest rates by 50 basis points (bps), from 4.5% to 4.00%, for deposits maturing in 7 to 29 days, and by 25 bps, from 4.5% to 4.25%, for deposits maturing between 30 to 45 days. The bank reduced interest rates on deposits maturing in 46 to 90 days by 50 basis points (bps), from 4.75% to 4.25%, but increased interest rates on deposits maturing in 91 to 179 days by 30 bps, from 4.2% to 4.50%.
Deposits with maturities between 180 and 269 days will now earn an interest rate of 4.95%, up 10 basis points from 4.85%, while deposits with maturities between 270 and 1 year will now earn an interest rate of 5.35%, up 10 basis points from 5.25%.
Deposits maturing in 1 to 2 years (except from 444 days) will now earn an interest rate of 6.50%, up 10 basis points from 6.4%, while deposits maturing in 444 days will now earn an interest rate of 7.25%, up 25 basis points from 7%. IOB increased its interest rate by 40 basis points, from 6.4% to 6.80%, while those maturing in 3 years and above would still get a 6.50% interest rate.
IOB Tax Saver Deposit interest will continue to accrue at a rate of 6.50%. The single depositor or the primary holder of a joint deposit on an IOB Tax Saver FD can claim a deduction from income tax for the amount deposited in the deposit as well as all other authorised investments under Section 80C up to a maximum of Rs. 1.50 lacs.
“For Senior Citizens Additional Rate of 0.50% and for Super Senior Citizens (aged 80 years and above) Additional Rate of0.75% continues,"Indian Overseas Bank (IOB) has mentioned on its website.