FD Calculator: This public sector bank has increased the interest rate on a 444-day special FD—find out more..

FD Calculator: The public sector bank, Indian Overseas Bank (IOB), has increased interest rates on its 444-day special fixed deposit (FD) scheme. For retail term deposits of less than ₹3 crore, the bank has raised the interest rate by 15 basis points to 6.75% per annum. Previously, this FD tenure offered an interest rate of 6.60%. The new interest rates came into effect on November 10, 2024.

Interest rates increased for non-callable FDs as well.

The bank has also raised the interest rate on 444-day non-callable FDs by 10 basis points to 6.85%. Previously, the rate for this was 6.75%. Additionally, the interest rate for 444-day NRE (Non-Resident External) term deposits has been increased from 6.60% to 6.75%. A 'non-callable' term deposit refers to a fixed deposit scheme that does not allow the investor to withdraw funds before the completion of the fixed tenure; in other words, the money remains locked with the bank until the FD matures.

Senior citizens to receive up to 7.50% interest.

For IOB’s 444-day FD, senior citizens will receive an additional 0.50% interest over the standard rate. Meanwhile, 'super senior citizens'—those aged 80 years or older—will receive an additional 0.75% interest. Consequently, for a 444-day callable FD, the annual interest rates will be 6.75% for general customers, 7.25% for senior citizens, and 7.50% for super senior citizens.

What is the interest rate for non-callable FDs?

The bank has increased the interest rate for 444-day non-callable FDs from 6.75% to 6.85%. Under this, senior citizens will receive an annual interest rate of 7.35%, while super senior citizens will get 7.60%. Non-callable FDs do not offer the facility for premature withdrawal, or they are subject to stringent conditions; therefore, it is essential to understand the terms and conditions before investing.

No changes to other FD interest rates

Indian Overseas Bank has clarified that, apart from the 444-day FD, there have been no changes to the interest rates for other tenures of callable, non-callable, and NRE term deposits. The rates for NRO retail term deposits also remain unchanged. The interest rate on the bank's tax-saver FD continues to be 6.10% per annum. Meanwhile, the bank determines interest rates for bulk deposits of ₹3 crore or more separately.

Earnings on a deposit of ₹10 lakh

Under this scheme, individuals under the age of 60 will receive an annual interest rate of 6.75%. This means that an investment of ₹10 lakh will yield ₹92,671 in interest. After 444 days, the total amount received will be ₹10,92,671.

For senior citizens, the interest rate has increased to 7.25%. This means they will earn ₹99,532 in interest under this scheme, with a total maturity value of ₹10,99,532. Super senior citizens will receive an interest rate of 7.50%, resulting in a total interest of ₹1,03,000 and a maturity value of ₹11,03,00

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