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

Indian Overseas Bank (IOB), a public sector lender, has raised interest rates on domestic fixed deposits of less than ₹2 crore. The bank is one of India's leading public sector banks, with operations in four countries: Singapore, Hong Kong, Thailand, and Sri Lanka. The bank revised its interest rates on June 10, 2022, and as a result of the revision, the bank increased interest rates on deposits of 46 to 90 days and 1 year to 3 years and above.

IOB FD Rates

The bank will continue to give a 3% interest rate on deposits from 7 to 45 days, but on deposits from 46 to 90 days, the interest rate has been raised from 3.50 per cent to 3.75 per cent, a 25 basis point increase. IOB will provide a 4.00 per cent interest rate on fixed deposits due in 91 days to 179 days and a 4.50 per cent interest rate on term deposits maturing in 180 days to 1 year.

IOB hiked the interest rate on fixed deposits maturing in 1 year to less than 2 years (except 444 days) from 5.15 per cent to 5.40 per cent, a 25 basis point increase, and on deposits maturing in 444 days from 5.20 per cent to 5.45 per cent, a 25 basis point increase. Indian Overseas Bank will now provide an interest rate of 5.45 per cent, up from 5.20 per cent before, a 25 basis point increase, and on deposits of three years or more, the interest rate has been raised from 5.45 per cent to 5.60 per cent, a 15 basis point increase.

Senior citizens will continue to enjoy an additional rate benefit of 0.50% and super senior citizens aged 80 years and above will continue to get an additional rate benefit of 0.75%, according to the bank. In addition, on 5-year tax-saving fixed deposits, the bank gives an interest rate of 5.60 per cent to senior citizens and 5.45% per cent to regular customers.

Meanwhile, leading banks such as Kotak Mahindra Bank, Punjab & Sind Bank, and the Central Bank of India have raised fixed deposit interest rates just after 2 days of RBI's decision to lift the repo rate up by 50 bps. More interest rate hikes on deposit and loan products are on the way after the RBI raised the repo rate to 4.90 per cent at its June MPC meeting.