IOB Increases FD Interest Rates for Better Returns

New Delhi, November 15: Investors seeking secure returns from Fixed Deposits (FD) have good news as the Indian Overseas Bank (IOB) has increased interest rates on select term deposits with a tenure of 444 days. The new rates, effective from November 10, have seen an increase of up to 15 basis points or 0.15%. This change will benefit both regular customers and senior citizens with improved returns.What are the New Interest Rates for 444 Days FD? After a review by IOB's Asset-Liability Committee, the bank has revised the interest rates for the 444-day FD. For Non-Callable Term Deposits: An annual interest rate of 6.85% will now apply for deposits over ₹1 crore, up from the previous rate of 6.75%. It is important to note that there have been no changes in the interest rates for other tenures of callable, non-callable, and NRE term deposits. Benefits for Senior Citizens In the 444-day Callable FD, senior citizens will continue to receive an additional interest of 0.50% compared to regular customers, bringing their interest rate to 7.25%.Furthermore, super senior citizens aged 80 years and above will receive an additional 0.75%, resulting in an interest rate of 7.50% for them. If a regular customer invests ₹1 lakh in the 444-day FD, they can expect to earn approximately ₹7,000 in interest based on the chosen interest rate and payment terms. Senior citizens can expect around ₹7,500, while super senior citizens could earn about ₹7,800 in interest. For an investment of ₹3 lakh, a regular investor can earn around ₹20,600, while senior citizens may receive about ₹22,400 and super senior citizens approximately ₹23,200 in interest.On a ₹5 lakh FD, a regular customer could earn around ₹34,200, while senior citizens might receive about ₹37,300 and super senior citizens around ₹38,600 in interest. Investment AmountRegular CustomerSenior CitizenSuper Senior Citizen ₹1 lakhApproximately ₹7,000Approximately ₹7,500Approximately ₹7,800 ₹3 lakhApproximately ₹20,600Approximately ₹22,400Approximately ₹23,200 ₹5 lakhApproximately ₹34,200Approximately ₹37,300Approximately ₹38,600 Investors should not decide to invest in an FD solely based on higher interest rates.It is essential to understand whether you are investing in a callable or non-callable deposit. Non-callable FDs typically have limited facilities for withdrawing money before maturity. Additionally, tax regulations on interest income may apply. Therefore, it is crucial to consider your needs, investment duration, and availability of funds before investing. With this move, IOB provides customers investing in the 444-day FD with better return options. The additional interest rates for senior and super senior citizens make this scheme even more attractive.However, it is advisable to confirm the new rates and all terms with the bank's website or a nearby branch before booking an FD.