Key Insights

You can earn up to 6.70% interest by selecting options such as the 444-day deposit period.

Start saving with ₹1,000 per month and increase your deposits up to tenfold anytime.

If you need extra funds, you can get a loan for up to 90% of your accumulated RD balance.

Are you searching for a reliable public sector bank to help you save more? You just need to take a look at the attractive deposit interest rates in Indian Overseas Bank. A recurring deposit can make it easier to build a secure financial future. Begin your savings journey with us today.

An IOB RD works like a secure savings account that helps your money grow. You deposit a set amount each month, and the bank adds interest every quarter. You can grow your money on a regular basis, but it's not a good option because it is one of the best options to build a long term wealth.

I use the Indian Overseas Bank RD interest rates calculator to plan my savings, and I use IOB monthly income scheme calculator. Investing ₹6,500 monthly in a recurring deposit at indian overseas bank rd interest rates for 5 years allows you to clearly see the maturity amount based on current interest rates.

This RD scheme supports financial planning, particularly for senior citizens who benefit from the favourable Indian Overseas Bank RD interest rates..

Indian Overseas Bank RD Interest Rates Based on Tenure

Would you like to start saving with Indian Overseas Bank? Just take advantage of our competitive RD interest rates, available for different time periods.

Here is the list of the Indian Overseas Bank interest rate based on tenure:

Period of Deposit	Existing Rates For Deposits below ₹3 Crore W.E.F 15.09.2025 (in %)	Revised Rates For Deposits below ₹3 Crore W.E.F 15.12.2025 (in %)	Revised Rates For Non-Callable # Deposits W.E.F 15.12.2025 (in %)
91-120 Days	3.50	3.50	3.50
121-179 Days	3.00	2.90	3.00
180-269 Days	5.00	4.75	4.85
270 Days to < 1 Year	5.50	5.50	5.60
1 Year	6.60	6.50	6.60
>1 Year to < 2 years (Except 444 Days)	6.50	6.40	6.50
444 Days	6.70	6.60	-
2 Years to < 3 Years	6.50	6.40	-
3 Years and above	6.20	6.10	-

You can choose non-callable deposits and consider 444-day terms to get the best possible yields.

Bonus Tip: Senior Citizens aged 60 years and above receive an additional interest rate of 0.50%. Super Senior Citizens aged 80 years and above receive an additional 0.75%.

Indian Overseas Bank RD Key Highlights (Features and Benefits)

Looking for a safe way to grow your savings? Indian Overseas Bank RDs are packed with features that make saving easy and rewarding.

Here is the list of the Indian Overseas Bank RD features and benefits:

Individuals, either singly or jointly with two or more persons, institutions, companies, firms, societies, Traders, Professionals, salaried individuals, etc.
Interest is calculated every day and paid at the current deposit rate.
If you close your deposit early, charges will apply according to the rules.
You can get a loan for up to 90% of your deposit balance.

You can enjoy flexible deposit options, get access to a large loan facility, and earn daily interest.

Types of Indian Overseas Bank Recurring Deposit Accounts

Looking for a Recurring Deposit? Indian Overseas Bank has options for everyone, whether you’re saving as an individual or for your institution.

Here is the list of the types of Indian Overseas Bank RD Account:

Types of Indian Overseas Bank RD

Details

IOB Recurring Deposit

Indian Overseas Bank compounds interest every quarter.
You can choose deposit periods from 6 to 120 months.
You can get loans up to 90% of your principal and the interest you have earned.
You can close your deposit early without any hassle.

Flexi Recurring Deposits (Flexi RD)

You need to choose a minimum amount to deposit each month, which can be between ₹1,000 and ₹1,00,000. There is no limit on the number of deposits in a month, as long as the total does not exceed 10 times your chosen amount.

For example, if you set your core amount at ₹5,000 per month, you can deposit between ₹5,000 and ₹50,000 each month, in multiples of ₹100.

You can pick a standard RD if you want steady growth, or go with a Flexi RD for more flexible monthly savings.

Indian Overseas Bank RD Tenure & Minimum Deposit

Still confused by all those tricky RD rules? Indian Overseas Bank skips the confusion. With flexible terms and a low minimum deposit, you can start your RD without any stress. Here’s exactly how to get started.

Here is the list of the Indian Overseas Bank RD Account tenure and minimum deposit:

Minimum Deposite	You can deposit a minimum of ₹1,000 and a maximum of ₹1,00,000 each month. Each monthly payment can be any amount between your chosen base amount and up to ten times that amount, in multiples of ₹100.
Tenure	The deposit period can be from 6 to 120 months.

You can start saving with as little as ₹1,000, increase your savings whenever you like, and keep saving for up to ten years.

Conclusion

Indian Overseas Bank’s recurring deposit plans provide competitive rates and flexible features, including non-callable deposits and adjustable instalment amounts. These options support consistent saving and financial planning.

FAQS

Has anyone had a bad experience with an IOB RD account?

People have mixed experiences with Indian Overseas Bank (IOB) Recurring Deposit (RD) accounts. Many mention problems like poor customer service, slow digital banking, and communication issues at branches. Still, most agree that the RD is a safe, low-risk investment.

Which PSU bank is good for inward remittance/forex services?

Indian Overseas Bank (IOB) is often recommended for inward remittance and forex services because it offers good exchange rates and low fees. Canara Bank, Punjab National Bank (PNB), and State Bank of India (SBI) are also reliable choices.

What’s the best strategy for setting up a recurring deposit (RD), and how can it act as a financial safety net?

A recurring deposit (RD) is a useful way to build your savings step by step. If you manage it well, it can become a reliable financial safety net. To get the most out of an RD, start by setting clear financial goals, pick a provider and tenure that suit your needs, and consider connecting it with other financial products for better coverage.

Can I break my RD account before the completion of tenure?

You can usually close your Recurring Deposit (RD) before it matures, but there are often penalties. These may include a lower interest rate, sometimes as low as the savings account rate, and a fee of 0.5% to 1%, depending on your bank and how long the RD has been open. Most banks do not allow partial withdrawals, so you will need to close the whole account.

Can I make a partial withdrawal from my IOB RD account?

No, you cannot make partial withdrawals from your IOB RD account.