IOB Recurring Deposit Interest Rates 2025
Indian Overseas Bank offers a higher rate of interest on recurring deposits with longer tenure and lowers interest rates for an account opened for a shorter period. The highest interest rate offered by the bank is 6.80% for the deposit amount.
Indian Overseas Bank Recurring Deposit scheme is a good savings option if you want to get into the habit of saving every month. The bank offers recurring deposit for different tenures. The interest rates range from 5.75% p.a. to 7.30% p.a. while senior citizens get 0.50% additional interest rate.
Rate of Interest for Deposits Less Than Rs.2 crore
Tenure | Rate of Interest |
180 days to 269 days | 5.75% |
270 days to less than a year | 5.75% |
1 year to less than 2 years (other than 444 days) | 6.90% |
444 days | 7.30% |
2 years to less than 3 years | 6.80% |
3 years and above | 6.50% |
Note: The interest rates mentioned in the table are effective as of 15 April 2024.
Indian Overseas Bank Recurring Deposit Key Highlights
Minimum Amount Deposit | Min: Rs.50 (for any higher amount, deposit in multiples of Rs.5) |
Tenure | Min: 6 months Max: 10 years |
Eligibility | Salaried individual, small trader, housewife, student or a rural saver |
Additional Rate for Senior Citizens | 0.50% |
Loan Availability | Up to 90% on the principal and also on the interest accrued |
Premature Closure | Allowed |
Benefits of Indian Overseas Bank Recurring Deposit (RD)
- Attractive interest rates
- Additional rates for senior citizens
- Minors below 10 years of age can apply jointly with their guardians
- Loan against deposit facility available
How to Open an RD Account with Indian Overseas Bank
You can open a recurring deposit account with Indian Overseas Bank in two ways:
- By visiting the branch
- Through net banking
If you are an existing Indian Overseas Bank account holder, use your net banking username and password to log in to your online account and open an e-RD right away. If you are not an Indian Overseas account holder, you will have to open an account first. After your account is active, you can log in to net banking and open an e-RD.
You can invest your money in RD by Indian Overseas Bank and enjoy competitive rates. However, to enjoy better returns, look for other investment vehicles like mutual funds, fixed deposits, stocks, and bonds, among others.
RD Article Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes
- Monthly Recurring Deposit
- Indian Bank Recurring Deposit
- Union Bank Recurring Deposit
- UCO Bank Recurring Deposit
FAQs on Indian Overseas Bank Recurring Deposit
- What is the minimum amount that must be deposited in a month?
The minimum amount that must be deposited in a month is Rs.50.
- Can I add nominees to the RD account?
Yes, you can add nominees to the RD account.
- Will there be any charges levied in case of foreclosure?
Yes, a penalty will be levied in the case of foreclosure. Depending on when the account was opened, the penalty will vary.
- Does IOB provide a partial withdrawal facility on its RD account?
No, IOB does not provide the partial withdrawal facility on its RD account.
- Can HUFs open an RD account?
Yes, HUFs can open an RD account.
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