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In case you are on the lookout for a fixed deposit scheme offered by a reputable public sector bank, you may want to consider Indian Overseas Bank (IOB). IOB is based in Chennai, and this bank has a large customer base across India, especially in Tamil Nadu. Indian Overseas Bank has a variety of fixed deposit plans with varying tenures, high interest rates, and different options for paying interest.
If you plan to invest your money in a fixed deposit scheme for a few months or even for several years, knowledge about Indian Overseas Bank Fixed Deposit Interest Rates and the features of IOB FD Schemes will help you make the right decision.
Disclaimer: This post is meant only for educational purposes and not to be construed as investment advice in any way. The interest rate of the Indian Overseas Bank FD Scheme can vary from time to time as per the bank’s policies. For more details, please refer to the IOB website.
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IOB Fixed Deposit Interest Rates in 2026
The Indian Overseas Bank has FD schemes that have terms from seven days up to ten years. According to the latest published interest rate, a general customer can earn an interest rate of up to 6.60% per annum, whereas a senior citizen can earn up to 7.10% per annum.
Some of the commonly offered rates are shown below:
| Tenure | General Citizens | Senior Citizens |
| 1 Year | 6.50% p.a. | 7.00% p.a. |
| 444 Days (Special Tenure) | 6.60% p.a. | 7.10% p.a. |
| Above 1 Year to Below 2 Years | 6.40% p.a. | 6.90% p.a. |
| 3 Years & Above | 6.10% p.a. | 6.60% p.a. |
IOB FD Rates on Domestic/NRO/NRE Deposits of below Rs 3 crore w.e.f. 15 June 2026
| Tenure | Interest Rates (% p.a.) | ||
| Regular Citizens | Senior Citizens | Super Senior Citizens | |
| 7-14 days * | 3.5 | 4 | 4.25 |
| 15-29 days | 3.5 | 4 | 4.25 |
| 30-45 days | 3.5 | 4 | 4.25 |
| 46-60 days | 4 | 4.5 | 4.75 |
| 61-90 days | 3 | 3.5 | 3.75 |
| 91-120 days | 3.5 | 4 | 4.25 |
| 121-179 days | 2.9 | 3.4 | 3.65 |
| 180-269 days | 4.5 | 5 | 5.15 |
| 270 days to less than 1 year | 5.5 | 6 | 6.25 |
| 1 year | 6.5 | 7 | 7.25 |
| Above 1 year to less than 2 years (except 444 days) | 6.4 | 6.9 | 7.15 |
| 444 days | 6.6 | 7.1 | 7.35 |
| 2 years to less than 3 years | 6.4 | 6.9 | 7.15 |
| 3 years and above | 6.1 | 6.6 | 6.85 |
Rates are indicative and may change periodically. Please refer to the bank’s latest rate card before investing.
Key Features of Indian Overseas Bank Fixed Deposits
Fixed Deposits by IOB serve to fulfill both short-term as well as long-term savings requirements. The customers have an option to select from among different tenure options and can go for cumulative and non-cumulative deposits based on their interest payout requirements.
There is also an option of getting some additional interest from the bank for eligible senior citizens and super senior citizens, as per the policy of the bank. The fixed deposit can usually be made either by visiting the branch or online using the net banking facilities offered by the bank.
Latest Fixed Deposit Updates:
- IOB Fixed Deposit Interest Rates July 2026: Indian Overseas Bank FD Complete Guide
- 5-Year Fixed Deposit Interest Rates 2026: Best Banks for Long-Term FDs
- DBS Bank Fixed Deposit Interest Rates 2026: Is DBS Bank FD Worth It in India?
What is an IOB Special Fixed Deposit?
From time to time, the Indian Overseas Bank comes up with special fixed deposit tenures like a 444-day FD that gives a better rate of interest than the normal FD tenures. Such special schemes are launched by the bank at its discretion.
However, before investing in such a scheme, one must get acquainted with the interest rate, tenure, early withdrawal facility, and other related conditions.
Should You Use an IOB FD Calculator?
The IOB FD calculator can aid you in calculating the maturity amount based on your deposit amount, tenure, rate of interest, and compounding. The IOB FD calculator gives you an estimate of the maturity amount, but the real maturity amount will depend on the interest rate prevailing when you book your fixed deposit.
It can be used to calculate the maturity amount on the basis of various tenures and how it differs.
Points to Keep in Mind While Opening an IOB Fixed Deposit
Selecting a fixed deposit is not only about choosing one that offers the maximum interest rate. You should also look into certain other aspects before making the choice.
These include considering your financial needs, liquidity requirements, tenure, and taxes.
| Factor | Why It Matters |
| Interest Rate | Determines the return on your deposit. |
| Tenure | Should match your financial goal. |
| Premature Withdrawal | May involve reduced interest or penalties. |
| Interest Payout | Choose cumulative or periodic payouts based on your needs. |
| Deposit Insurance | Eligible deposits are covered under DICGC limits as applicable. |
Frequently Asked Questions (FAQs)
As per the latest available interest rates, IOB provides 6.60% p.a. and 7.10% p.a. for select tenures for general and senior citizens, respectively.
Yes. IOB has, from time to time, launched some special fixed deposit tenures like 444-day FD with different interest rates than the usual fixed deposits. It depends on the terms and conditions of the bank.
Yes. Eligible customers can apply for fixed deposits through IOB’s internet banking facility and digital banking services, in addition to branch-based FD accounts.
IOB is a public sector bank that follows the regulations of the Reserve Bank of India (RBI). Eligible fixed deposits of Indian Overseas Bank are insured by the DICGC insurance scheme up to the limit as prescribed.
Conclusion
The Indian Overseas Bank still remains a popular investment option for many people who seek the safety of a government-sponsored bank but have flexibility in their fixed deposits. The flexible tenures offered by IOB FDs that range from just a few days to many years, coupled with attractive interest rates, make it an ideal solution for various needs. Prior to investing in a fixed deposit, one should analyze all the tenures available and check the current interest rates on the bank’s website.
Disclaimer
Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and/or default in payment. Read all the offer-related documents carefully. This blog/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products/services of/on GoldenPi or any products/services of its third-party client(s). For a detailed calculation of YTM, visit our website. T&C’s Apply.
