This public sector bank has increased the interest rate on a 444-day special fixed deposit (FD); find out..

Public sector lender Indian Overseas Bank (IOB) has offered a benefit to customers opting for fixed deposits (FDs). The bank has increased interest rates on its special 444-day FD scheme. The new rates came into effect on November 10, 2024. If you are looking for excellent returns without any risk, this scheme could prove to be highly beneficial for you. Find out how much you would earn on an investment of ₹1 lakh under these new rates.

What is the interest rate on regular FDs?
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 444-day FD offered an interest rate of 6.60%.

Benefits on non-callable FDs
A 'non-callable' FD means that funds cannot be withdrawn before the maturity date. The bank has increased the interest rate on this special 444-day non-callable FD by 10 basis points, bringing it to 6.85%. Additionally, for NRI customers, the interest rate on 444-day NRE term deposits has been increased from 6.60% to 6.75%.

Great news for senior citizens
IOB is offering additional interest to senior citizens on this special 444-day FD. Senior citizens—those aged between 60 and 80 years—will receive an interest rate 0.50% higher than the standard rate, amounting to 7.25% per annum.

'Super senior citizens'—customers aged 80 years or older—will receive an interest rate 0.75% higher than the standard rate, i.e., 7.50% per annum. For non-callable FDs, the interest rate will be 7.60%.

How much will you earn by depositing ₹1 lakh?

If you invest ₹1,00,000 in a standard 444-day fixed deposit (FD) with IOB, you will receive ₹1,09,267 based on the new interest rates.

If you are a senior citizen—meaning you are between 60 and 80 years old—you will earn interest at a rate of 7.25% on your investment. This translates to an interest income of ₹9,953, and upon maturity, you will receive a total of ₹1,09,953.

If you are a 'super senior citizen'—meaning you are over 80 years old—the interest rate will be 7.50%. You will earn ₹10,300 from interest alone, resulting in a total maturity amount of ₹1,10,300.

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