Indian Overseas Bank (IOB) raises FD rates by 10 basis points on these tenors

12 Jan 2024 , 01:20 PM

The public sector lender Indian Overseas Bank (IOB) raised interest rates on fixed deposits under ₹2 crore. Following the modification, the bank is now offering interest rates that range from 4.50% to 6.50% on deposits with maturities of seven days to three years. The maximum interest rate on deposits maturing in 444 days is 7%, per the bank’s official website. Starting on February 10, 2023, the new interest rates on fixed deposits will take effect.

For fixed deposits that mature in 7 to 45 days, the bank will continue to grant an interest rate of 4.50%, and for those that mature in 46 to 90 days, Indian Overseas Bank (IOB) will continue to offer an interest rate of 4.75%. IOB raised the interest rate on deposits with tenors ranging from 91 to 179 days by 10 basis points (bps), while the bank raised the interest rate on deposits with tenors ranging from 180 to 269 days by 10 bps.

The interest rate on deposits maturing in the next 270 days to a year is now 5.35%, up 10 basis points from 5.25% previously. The interest rate on deposits maturing in the next year to two years (apart from 444 days) is now 6.45%, up 5 basis points from 6.40% previously. The interest rate for deposits maturing in 444 days will remain at 7%, however the interest rate on deposits maturing in 2 or 3 years will now be 6.40%. Deposits with terms longer than three years would still earn interest at the current rate of 6.50% from Indian Overseas Bank (IOB).

The interest rates on OB Tax Saver Deposits will stay at 7% for senior citizens and 6.50% for the general public. For individuals who are 80 years of age or older, Indian Overseas Bank still offers a senior citizen additional rate of 0.50% and a super senior citizen additional rate of 0.75%.

IOB likewise increased MCLR rates by 10 to 15 bps for all tenors on February 10, 2023. Overnight, the MCLR increased by 10 basis points from 7.70% to 7.80%; one month, it increased by 15 basis points from 7.75% to 7.90%; three months, it increased by 15 basis points from 8.05% to 8.20%; six months, it increased by 15 basis points from 8.20% to 8.35%; and one year, it increased by 15 basis points from 8.30% to 8.45%. The 2 year and 3 year MCLR rates were increased by 10 basis points, or 8.40% and 8.50% and 8.45% and 8.55%, respectively. The Indian Overseas Bank (IOB) website states that the Central Office’s top management alone has the authority to approve the interest rates for loans with overnight tenor MCLR and one-month MCLR terms. It is made clearer that no other functionaries have the authority to impose an overnight or one-month MCLR sanction.

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