Indian Overseas Bank hikes interest rates on fixed deposits: Check details

Indian Overseas Bank (IOB), a public sector lender, increased interest rates on fixed deposits below ₹2 crore. The bank's website states that the new interest rates will take effect on July 12, 2022. After the modification, the bank increased interest rates on fixed deposits with maturities ranging from 1 year to less than 2 years and 444 days, respectively.

IOB FD Rates 2022

The bank will continue to give a 3 per cent interest rate on deposits that mature in 7 to 45 days, and a 3.75 per cent interest rate on term deposits that mature in 46 to 90 days. Fixed deposits with maturities between 91 and 179 days will continue to pay interest at a rate of 4%, while term deposits with maturities between 180 and less than a year will continue to generate interest at a rate of 4.50 per cent.

On deposits maturing in 1 year to less than 2 years except for 444 days, the bank has hiked the interest rate from 5.40% to 5.45% and on deposits maturing in 444 days, the IOB has hiked the interest rate from 5.45% to 5.50%. In addition, the interest rate for IOB's Tax Saver Deposit will remain at 5.60 per cent. IOB will continue to offer an interest rate of 5.45 per cent on deposits of 2 to 3 years and 5.60 per cent on deposits of 3 years and above. “For Senior Citizens Additional Rate of 0.50% and for Super Senior Citizens (aged 80 years and above) Additional Rate of 0.75% continues,” IOB has mentioned on its website.

Yesterday, IOB also hiked the marginal cost of funds based lending rate (MCLR) by 10 bps across all tenors. On July 10, the new rates, which range from 6.95 to 7.55 per cent, will go into effect. On 1-year MCLR which is generally linked to home loans, personal loans, car loans etc, the bank has hiked the rate from 7.45 per cent to 7.55 per cent and thus the hike in MCLR would result in higher EMIs if you are an existing borrower of the bank.