Public sector Indian Overseas Bank has announced new interest rates for FD. Rates have been reduced by up to 25 bps for some tenures, which are effective from May 15, 2026. All banks keep changing interest rates from time to time. Therefore, customers are advised to visit the official website of the bank or the nearest branch before investing.

The bank is offering 3.50% to 6.70% interest to common citizens on FD of less than Rs 3 crore. Earlier, 4.75% return was available on tenure of 180 days to 269 days, now it has been reduced to 4.50%. If you choose non-callable deposit option, the interest rate for this tenure is 4.60%, which was earlier 4.85%. Customers can invest a minimum of Rs 1 lakh. At the same time, at least more than Rs 100 crore can be invested in non-label deposits.

Interest rates for senior citizens

The bank is offering 0.50% additional interest to senior citizens (people aged 60 years and above). The interest rate for such people ranges from 4% to 7.10%. The bank is offering 0.75% extra interest to super senior citizens i.e. people aged 75 years and above. 6.10% interest is being given on IOB Tax Saver Deposit.

Maximum interest available on tenure of so many days

The bank is giving the highest interest on FD of 444 days. Ordinary citizens are getting 6.50% interest on 1 year FD. The interest rate for senior citizens is 7%. 6.40% interest is being given on FD tenure of 2 years to less than 3 years and 1 year to less than 2 years. The bank is offering 6.10% interest on investment of 3 years or more.

Tenure wise interest rates

• 7 days to 14 days – 3.50%


• 15 to 29 days – 3.50%


• 30 to 45 days – 3.50%


• 46 to 60 days – 4%


• 61 to 90 days – 3%


• 91 to 120 days – 3.50%


• 180 days to 269 days – 4.75%


• 270 days to less than one year – 5.50%


• 1 year- 6.50%


• More than 1 year and less than 2 years – 6.40%


• 444 days- 6.60%


• From 2 years to less than 3 years – 6.40%


• 3 years or more – 6.10%


• Senior Citizen – 0.50%

Check new interest rates here