If you are looking for a fixed deposit scheme offered by a public sector bank, Indian Overseas Bank (IOB) is one option to consider. IOB is headquartered in Chennai and offers a range of fixed deposit products with different tenures and interest payout options. Let’s look at where its FD rates stand in October 2026.
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 IOB’s latest published rates, a regular customer can earn up to 6.60% p.a., while a senior citizen can earn up to 7.10% p.a. on select tenures. The rates below are for deposits below ₹3 crore and are effective from 15 May 2026, as listed by IOB on its latest rate page updated on 1 October 2026.
IOB FD Rates on Domestic/NRO/NRE Deposits of below Rs 3 crore (as of October 2026)
| Tenure | Interest Rates (% p.a.) | ||
| Regular Customers | 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:
- HDFC Bank Fixed Deposits (FDs) and Interest Rates for October 2026
- ₹2 Crore FD Interest Per Month in 2026: FD vs Bonds vs Debt Funds
- Premature FD Withdrawal: Penalties, Interest Calculation & Tax Impact
What is an IOB Special Fixed Deposit?
IOB offers special fixed deposit tenures from time to time. One such product is the 444-day Special Fixed Deposit, which currently offers a higher interest rate than several other standard IOB FD tenures. Before opening a special-tenure FD, check the applicable interest rate, tenure, premature withdrawal terms and other conditions.
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)
IOB currently offers a maximum FD interest rate of 6.60% p.a. to regular customers and 7.10% p.a. to senior citizens on the 444-day tenure for deposits below ₹3 crore.
Yes. IOB offers special fixed deposit tenures from time to time, including its 444-day Special Fixed Deposit. The applicable rate and other terms depend on the bank’s current conditions.
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. Eligible deposits, including fixed deposits, are covered under the DICGC deposit insurance scheme up to ₹5 lakh per depositor per bank, including principal and interest, subject to applicable rules.
Conclusion
IOB offers FD tenures with different interest rates and payout options, including a 444-day special fixed deposit that currently offers the bank’s highest retail rate of 6.60% p.a. Before opening an FD, compare the applicable interest rate, tenure, premature withdrawal terms, interest payout option, taxation and DICGC insurance coverage. Since FD rates can change, check IOB’s latest rate card before booking a deposit.
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
