Key Takeaways

The IOB savings account interest rate ranges from 2.25% per annum to 6.25% per annum, varying by balance slab.
The Indian Overseas Bank savings account minimum balance can be as low as ₹5 for no-frills accounts. It can go up to ₹2000 for a domestic urban account.
Senior citizens enjoy special benefits like zero minimum balance under schemes like Sixty Plus.

Bonus Tip: Do you know? IOB now offers zero penalty for non-maintenance of minimum balance on many savings accounts. Watch for official circulars on updated charges.

Shweta, a Chennai IT professional in her late 50s, once paused her Visual Studio compile to check her savings growth. Holding a cup of filter coffee, she pondered if her funds were being productive. She knew banks paid interest on savings, but she was curious to find which one maximised her hard-earned Chennai silicon cycles? She also wanted to find out if there is any special IOB Savings Account interest rate for senior citizens.

Think of a savings interest rate as money’s fitness score. The higher it is, the faster your money gains strength while chilling in your account. It’s like extra points in Candy Crush: if you save, the bank gives you bonus points.

Shweta said, “ I decided to keep ₹1,00,000 in my IOB account for a year at 2.50% per annum. I could earn interest daily and get that added quarterly to my account. I decided to use a third-party IOB Savings Account interest rate per month calculator to figure out my monthly increment.”

Latest Indian Overseas Bank Savings Account Interest Rates 2025-26

Here’s the latest official interest rate matrix for Indian Overseas Bank savings accounts:

Balance Slab	IOB Savings Account Interest Rate (% per annum)
Up to ₹1,00,000	2.50%
Above ₹Rs. 1,00,000 and up to ₹600,00,00,000 (Linked to Repo Rate)	2.25%
Above ₹6,00,00,000 (Linked to Repo Rate)	6.25%

These IOB Savings Account interest rates apply to domestic SB accounts, NRE, and NRO accounts alike. For most Savers like Shweta, 2.50% per annum is what your money earns if you leave it untouched.

Indian Overseas Bank Savings Account Features and Benefits

Shweta’s friend told her saving with IOB was like chai and dosa. It is basic, satisfying, and reliable. And after she dug into the benefits, she agreed.

Feature	Details (IOB Insta Digital Savings Account)
Minimum Balance Option	No fixed zero balance; ₹500 minimum balance is typical for Insta Digital Savings to avoid restrictions.
Internet Banking	Available instantly once an account is opened online.
Debit Card	Rupay Classic/Platinum debit card issued after initial funding of ₹1,000.
Mobile Banking	Mobile banking access enabled with digital accounts. (IOB Digital Hub)
SMS Alerts	E-Statements and SMS/email alerts provided.
UPI/IMPS Transactions	Supported subject to account setup rules.

IOB accounts support everyday banking, UPI bliss, and debit card freedom for Chennai metro travel. IOB savings accounts suit people like Shweta who juggle between code commits and bank returns.

Indian Overseas Bank Savings Account Fees and Charges

Fees aren’t the dark side; they’re the release notes of banking.

Fee Type	Typical Charge
Non-maintenance penalty	Waived (SB public accounts)
Chequebook issuance	Per bank schedule (Nil up to a certain number of cheques per year for specific accounts, thereafter ₹4 per cheque leaf)
Cash withdrawal charges	50 free transactions per 6 months, thereafter ₹5 per transaction.

Shweta was happy. Penal charges for not maintaining a balance are gone on many schemes.

Indian Overseas Bank Savings Account Types

Shweta’s exploration brought her through these versions of IOB SB accounts. Think of them like Android versions, but for banking.

Account Type	Key Benefit
Regular Savings Bank	Standard SB with debit card
No-Frills (BSBDA)	Zero or very low minimum balance
Arogiya Mahila	Savings tailored for women with Health Insurance with maternity benefits & health checkups with a discounted rate of premium
Sixty Plus SB	For senior citizens (60+) with a Dedicated Senior Citizen Desk and Doorstep Banking Facility
Eighty Plus SB	For super senior citizens, there is a Free Medical checkup during the annual camp and hassle-free life certificate submission for pensioners
DEFNON / DEFCOM	Defence personnel focused
Corp Salary	Zero balance for salaries

The Sixty Plus SB account has zero minimum balance and perks for seniors. But storing an amount will fetch you an additional 0.50%-0.75% IOB Savings Account interest rate for senior citizens. IOB isn’t one-size-fits-all. They give specialised flavours for women, seniors, employees, and more.

Conclusion

Shweta laughed, thinking her IOB savings were like Chennai idlis: simple, dependable, and always there for breakfast. With a 2.25-6.25% IOB Savings Account interest rate and flexible features, she feels her money is earning a significant interest.

She’s coding functions, not worrying about numbers, because her bank account is working in the background, like a good IDE auto-complete. She says, “IOB Savings Account interest rate? It’s not blockbusters like Bollywood FD rates, but it’s reliable like an AR Rahman tune.”

FAQs Related to Indian Overseas Bank Savings Account Interest Rates

What is the Indian Overseas Bank savings account minimum balance?
The minimum balance depends on the scheme (e.g., BSBDA can be zero, while regular accounts may need ₹100-₹2,000).

Does IOB waive the penalty for not maintaining a balance?
Yes, for many public SB accounts, penalty charges for non-maintenance have been waived since October 2025.

Does interest get credited quarterly?
Interest on the IOB savings account is calculated daily and credited quarterly. The official IOB page confirms quarterly posting.

Can seniors get extra interest?
There is an additional 0.50%-0.75% IOB Savings Account interest rate for senior citizens. Special SB types like Sixty Plus give zero balance and added conveniences.

What is the IOB savings account interest rate calculator?
Use bank or comparison sites to calculate interest earnings based on balance and days. (Search iob savings account interest rate calculator for tools).

Do people on Reddit say the Indian Overseas Bank can offer good exchange rates for inbound payments?
Yes, some Redditors report that IOB often gives better exchange rates for inward remittances compared to other banks, making it a useful choice for freelancers receiving overseas payments.

Do Reddit users say converting resident savings accounts to NRO/NRE is doable and not scary?
Yes, Redditors shared that converting resident Indian savings accounts to NRO/NRE is straightforward, banks guide you through the forms, and it makes managing finances abroad stress-free if you visit India and complete KYC.

Can you transfer money from an SBI debit card to an Indian Overseas Bank savings account?
Yes, Quora answers often explain that you can send money using your SBI debit card via digital payment apps (like UPI/IMPS) linked to that card, and the amount can instantly get credited into your IOB savings account using IMPS/UPI.

Can you close an IOB savings bank account shortly after opening it?
Yes, as per the Indian Overseas Bank’s official FAQs, there are no account closure charges, so you can close your savings account soon after opening if you decide it’s not needed.