IOB, short for Indian Overseas Bank, provides a recurring deposit scheme to its customers with attractive interest rates. One can save a substantial amount by putting aside a small number of your earnings with the help of great IOB recurring deposit interest rates offered by the bank. One can choose from tenures ranging from 6 months to 120 months (10 years). The interest rates of
| Tenure | Regular Rates (p.a.) | Senior Citizen Rates (p.a.) |
| 180 days to 269 days | 4.90% | 5.40% |
| 270 days to 364 days | 4.90% | 5.40% |
| 1 year to 1 year 364 days | 5.15% | 5.65% |
| 2 years to 2 years 364 days | 5.20% | 5.70% |
| 3 years to 10 years | 5.20% | 5.70% |
The interest on the Indian Overseas Bank Recurring Deposit can be calculated with the formula:
A = P x (1+R/N) ^ (Nt)
Here,
For example, Mr. H, who lives in Gujarat decides to open an RD account with IOB with a deposit amount of Rs. 4000 for 3 years. The interest rate he is getting is 6.5%. In that case, the total interest amount upon maturity will be Rs 5498, and his total maturity amount will be Rs. 1,59,300.
The RD maturity amount you receive is the sum of all the below-given parameters. Alternatively, one can also use the IOB RD Interest calculator to check the interest earned on their deposit. One might need the below-given details of their RD account to calculate the maturity amount.
Deposit Amount: The initial amount deposited by a customer in their account. The minimum deposit amount for IOB RD starts from as low as Rs 50.
IOB RD Interest Rates: 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.
Deposit Tenure: As mentioned in the previous point, low-interest rates are offered for short tenure RDs and vice-versa.
An RD account with IOB can be opened in two ways:
By visiting the nearby IOB branch with all the required documents.
If you are already an Indian Overseas Bank account holder, you can use the net-banking credentials to log in to your online account and open an e-RD right away. However, if you are not an Indian Overseas customer, an account needs to open first. You can use the net banking facility and open an e-RD once the account is active.
Indian Overseas bank extends the following RD options for its customers. The RD details in IOB bank are mentioned below :
A regular IOB Recurring Deposit account can be opened for a tenure ranging between 6 and 120 months. Interest in these RDs is compounded every quarter. You can start your RD at IOB with a minimum deposit of Rs. 50.
A Flexi RD with IOB can be started with a minimum core deposit amount of Rs. 1,000/month. The maximum deposit core deposit amount can go up to Rs. 1 Lakh/month and monthly deposits can range between the minimum core amount, i.e., Rs. 5,000 and 10x the minimum core amount. It should be in multiples of Rs. 100.
IOB’s Flexi RD comes with a special feature of no limit to the total number of credits subjective to the maximum remittance being ten times the core amount. The minimum tenure under Flexi RD starts from 12 months, with a maximum tenure ranging up to 120 months. You can opt for a suitable tenure in multiples of 6 months, starting from the minimum tenure of 12 months.
The IOB Recurring Deposit variant can be opted for by super senior citizens. Interest rates on IOB Eighty Plus RD are applicable at 0.75% over the regular rates of interest applicable on term deposits. You can start an IOB Eighty Plus RD with a minimum tenure of 6 months, extending up to 120 months.
An individual over 60 years of age can open this Indian Overseas Bank Recurring Deposit account to enjoy interest-earning at 0.50% higher than the regular rates. RD under Vardhan can be started with a minimum amount of Rs. 100. Also, the minimum RD tenure is 6 months, with maximum tenure extending up to 120 months.
IOB allows premature withdrawal of your RD amount before the maturity date but charges a nominal penalty as per their norms. Also, partial withdrawals are not allowed.
Indian Overseas Bank offers a hassle-free RD account closure prematurely irrespective of the amount of deposit or the period opted or completed. The interest rate can, however, vary from the one agreed upon during an RD account opening. Plus, interest payable will depend on the amount deposited and the period for which it remained with IOB.
The charges applicable to the foreclosure of an RD account with IOB are as follows.
| Types of RDs | Applicable Premature Closure Charges |
| RDs of up to Rs. 15,000 | 0% |
| RDs between Rs. 15,001 and Rs. 5 Lakh | 0.50% |
| RDs between Rs. 5 Lakh and Rs. 1 Crore | 1% |
| RDs above Rs. 1 Crore | 1% |
You need to belong to either of the following categories to open an IOB Recurring Deposit account.
Identity proof (any 1)
Address Proof (any 1)
Bank grants you a few days’ grace to clear the pending payment which you have missed owing to some reasons. However, in case you don’t pay your installment even after that grace period, the bank will charge a penalty as per their norms.