Indian Overseas Bank Fixed Deposit (FD) Interest Rates 2026 – Latest Rates & Features
Indian Overseas Bank (IOB) continues to be a trusted public sector bank offering safe and stable Fixed Deposit (FD) options in 2026. If you’re looking for guaranteed returns with flexible tenure options, IOB FDs can be a suitable choice.
Here’s a complete guide covering the latest Indian Overseas Bank FD interest rates, features, eligibility, and how to open an FD.
Indian Overseas Bank FD Interest Rates 2026 – Quick Overview
| Category | Interest Rate (Per Annum) |
|---|---|
| Regular Customers | Typically 6.00% – 7.75% |
| Senior Citizens | Up to 0.50% higher |
| Super Senior Citizens (if applicable) | Additional benefit as per the bank policy |
| Tenure | 7 days to 10 years |
| Minimum Deposit | ₹1,000 |
| Interest Payout | Monthly, Quarterly, Half-Yearly, Annually, or on Maturity |
Interest rates are subject to change. Always confirm through IOB Net Banking, mobile app, or branch before investing.
Indian Overseas Bank FD Interest Rates 2026 (Indicative – Tenure Wise)
| Tenure | Regular Rate | Senior Citizen Rate |
|---|---|---|
| 7 – 14 days | 6.00% | 6.50% |
| 15 – 29 days | 6.25% | 6.75% |
| 30 – 90 days | 6.50% | 7.00% |
| 91 – 180 days | 6.75% | 7.25% |
| 6 – 12 months | 7.00% | 7.50% |
| 1 – 2 years | 7.25% | 7.75% |
| 2 – 3 years | 7.50% | 8.00% |
| 3 – 5 years | 7.25% | 7.75% |
| 5 – 10 years | 6.75% | 7.25% |
Rates are indicative for 2026 and may vary depending on the deposit amount and scheme.
Example – FD Maturity Calculation
If you invest ₹1,00,000 for 2 years at 7.50% (cumulative option):
- Estimated Interest Earned: ₹15,000 – ₹16,000
- Total Maturity Amount: Around ₹1,15,000 – ₹1,16,000
Actual returns depend on compounding frequency (usually quarterly).
You can calculate exact returns using IOB’s FD calculator available in net banking.
Key Features of IOB Fixed Deposit
Flexible Tenure
Choose from 7 days up to 10 years based on your financial goals.
Senior Citizen Extra Interest
Customers aged 60+ years typically receive 0.50% additional interest.
Loan Against FD
Loan or overdraft facility available up to 75%–90% of the FD value (as per policy).
Premature Withdrawal
Allowed with applicable penalty charges.
Multiple Interest Payout Options
- Monthly
- Quarterly
- Half-Yearly
- Annual
- Cumulative (on maturity)
Types of FD Schemes Offered
Indian Overseas Bank may offer:
- Regular Fixed Deposit
- Senior Citizen FD
- Tax Saving FD (5-year lock-in under Section 80C)
- Cumulative FD
- Non-Cumulative FD
- Special tenure deposit schemes (limited-time offers)
Availability may vary in 2026.
Eligibility Criteria
Resident Indian individuals
Senior citizens
Joint account holders
HUF and institutions (subject to bank approval)
NRIs can check NRE/NRO FD schemes separately.
Documents Required
For existing customers with updated KYC:
- No additional documents are usually required.
For new customers:
- Aadhaar Card
- PAN Card (mandatory)
- Address Proof
- Passport-size photograph (for branch application)
How to Open an Indian Overseas Bank FD (Step-by-Step)
Method 1: Online via Net Banking (24×7)
- Log in to IOB Net Banking.
- Go to Deposits → Open FD.
- Enter the deposit amount and select the tenure.
- Choose payout option.
- Confirm nominee details.
- Submit using OTP authentication.
FD receipt is generated instantly.
Method 2: Through Mobile Banking App
- Open IOB Mobile Banking App.
- Select Open Fixed Deposit.
- Enter the required details and confirm.
Method 3: Visit Nearest Branch
- Fill the FD application form.
- Submit KYC documents.
- Deposit funds via cheque or transfer.
- Collect the FD receipt.
Branch timings may vary by location.
Taxation Rules (2026)
- Interest earned is taxable as per your income tax slab.
- TDS may apply if interest exceeds the prescribed limits.
- Tax Saving FD qualifies for a deduction under Section 80C (up to ₹1.5 lakh per financial year).
Is Indian Overseas Bank FD Safe?
Indian Overseas Bank is a public sector bank regulated by the RBI.
Deposits up to ₹5 lakh per depositor, per bank, are insured under DICGC.
Frequently Asked Questions (FAQs)
1. What is the highest FD rate in IOB in 2026?
A. Typically around 7.75% for regular customers, higher for senior citizens, depending on tenure.
2. What is the minimum FD amount?
A. Usually ₹1,000.
3. Can I withdraw FD before maturity?
A. Yes, premature withdrawal is allowed, but there is a penalty.
4. Is online FD booking available?
A. Yes, through net banking and mobile banking (24×7).
5. Is a loan against an FD available?
A. Yes, subject to bank rules.
Troubleshooting FD Issues
If your FD is not visible:
- Check the “Deposits” section in net banking.
- Refresh or log in again.
- Verify transaction status.
- Contact customer care or visit the branch if required.
Conclusion
Indian Overseas Bank FD Interest Rates 2026 offer stable, reliable returns with flexible tenures and senior-citizen benefits. Backed by public sector credibility and DICGC insurance coverage up to ₹5 lakh, IOB FDs remain a secure choice for conservative investors.
Before investing, always confirm the latest interest rates through official IOB channels for accurate details.
