Fixed Deposit or FD is a good interest rate investment option. Indian Overseas Bank offers a Fixed Deposit Account with a high interest rate. Fixed Deposit can open for the duration of a minimum of 7 days and a maximum of ten years. Fixed Deposit gives you a high-interest rate on your deposit amount. The Deposit minimum amount is depending upon the bank.

Benefits of Indian Overseas Bank Fixed Deposit

  • You get a higher interest rate on your fixed Deposit while comparing with saving accounts.
  • Multiple fixed deposits can open.
  • Indian Overseas Bank also gives a loan on your fixed Deposit so that, you don’t need to break your Deposit for your need.
  • You can get an Rs.1.5 lakh exemption under Section 80 C of the Income Tax Act, 1961.
  • If you are a senior citizen, then you will get a high-interest rate on your Fixed Deposit account.

Fixed Deposit Eligibility

  • Fixed Deposits can open the name of Individual, Joint, Society, Company, Partnership, etc.
  • The applicant must have a savings account in the bank.

Income Tax Facts on Indian Overseas Bank Fixed Deposit Interest

If you are looking for income tax fact on Fixed Deposit interest, then you can check below:

  • If Fixed Deposit interest is less then Rs. 40, 000/-, then the Indian Overseas Bank will deduct TDS on interest.
  • Interest earned on Fixed Deposit is taxable. It will treat as Income from Other Sources.
  • If you don’t want to pay any TDS on Fixed Deposit, then you have to submit Form 15G and Form 15H in Indian Overseas Bank.

Indian Overseas Bank Tax Benefit Fixed Deposit

  • Interest Rate is 6.5% for 5 years term deposits.
  • The amount can not withdraw before five years.
  • The deposit account can not transfer to another bank.

Indian Overseas Bank Fixed Deposit Interest Rate

Period of Deposit

Existing Rates

For deposits below Rs. 2 Crore

W.E.F 08.01.2020 (in %)

Revised Rates

For deposits below Rs. 2 Crore

W.E.F 10.02.2020 (in %)

7-14 days *

4.50

4.50

15-29 days

4.50

4.50

30-45 days

4.50

4.50

46-60 days

4.60

4.60

61-90 days

4.60

4.60

91-120 days

5.25

5.25

121-179 days

5.50

5.50

180-269 days

5.75

5.75

270 days to < 1 year

6.25

6.25

1 year to < 2 years

(except 444 days)

6.25

6.30

444 days

6.35

6.40

2 yrs to < 3 yrs

6.35

6.35

3 yrs and above

6.25

6.25

For Deposits

Period of Deposit

Existing Rates

For deposits below Rs 2 Crore

W.E.F 08.01.2020 (in%)

Revised Rates

For deposits below Rs 2 Crore

W.E.F 10.02.2020 (in%)

1 year to < 2 years

(except 444 days)

6.25

6.30

444 days

6.35

6.40

2 yrs to < 3 yrs

6.35

6.35

3 yrs and above

6.25

6.25

Fore Closure Charges

DescriptionFore Closure Charges
Retail Term Deposits upto Rs. 15000/-NIL
Retail Term Deposits of Rs. 15,001/- up to Rs. 5 Lakh0.50%
Retail Term Deposits above Rs. 5 Lakh but below Rs. 1 Crore1.00%
Bulk Deposits of Rs. 1 Crore & above1.00%