Indian Overseas Bank raises FD rates; senior citizens to get 7.75% interest

Indian Overseas Bank (IOB), a public sector lender, has raised the interest rates on its fixed deposits (FDs). The new interest rates would be applicable to deposits of less than Rs 2 crore. The revised interest rates will take effect on April 10, 2023.
 
This announcement is in line with the Reserve Bank of India (RBI)’s decision to keep the repo unchanged at 6.5 per cent in its bi-monthly monetary policy meeting held on April 6, 2023.
 
New interest rates

• 
  Fixed deposits maturing between seven and 29 days will earn a four per cent interest under the new rates.
• 
  IOB would pay a 4.25 per cent interest rate on deposits maturing between 30 and 90 days.
• 
  The bank will pay 4.5 per cent on fixed deposits maturing between 91 and 179 days.
• 
  Deposits maturing between 180 and 269 days will earn an interest rate of 4.95 per cent.
• 
  Fixed deposits maturing between 270 days and less than a year will receive a 5.35 per cent interest rate.
• 
  Fixed deposits maturing in one to two years will earn a 6.5 per cent interest rate from the bank.
• 
  Special deposits maturing in 444 days, on the other hand, will earn an interest rate of 7.25 per cent.
• 
  The bank will offer a 6.8 per cent interest rate on fixed deposits maturing in two to three years.
• 
  FDs maturing in three years or more will fetch an interest rate of 6.50 per cent.

 
Interest rates for senior citizens, super senior citizens
 
Senior people will receive an additional 50 basis points (100 basis points = 1 per cent) on the standard interest rate. Meanwhile, super senior citizens, or those aged 80 and up, will earn a 75-basis-point premium over the public card rate. 
 
Let’s have a look at what additional perks for senior citizens:

• 
  Senior citizens will receive 4.5 per cent interest on deposits maturing between seven and 29 days.
• 
  The bank will offer a 4.75 per cent interest rate on deposits maturing between 30 and 90 days.
• 
  The bank will offer a 5 per cent interest rate on fixed deposits maturing between 91 and 179 days.
• 
  Fixed deposits maturing between 180 and 269 days will receive 5.45 per cent interest.
• 
  FDs maturing within 270 days and less than one year will earn 5.85 per cent interest.
• 
  Senior citizens will also receive a 7 per cent interest rate on fixed deposits maturing between one and two years.
• 
  Indian Overseas Bank will give a 7.75 per cent interest rate on a special deposit of 444 days.
• 
  FDs maturing in two to three years will earn a 7.3 per cent interest rate.
• 
  The bank will also pay 7 per cent interest on deposits maturing in three years or more.