Indian Overseas Bank (IOB), a leading public sector bank, has made a great offer for bank depositors looking for safe investments and assured returns. The bank has revised the interest rates of its most popular 444 day Special Retail Term Deposit scheme, increasing the rates by 15 basis points (0.15%). These new rates, implemented after a review by the bank’s Asset-Liability Committee (ALCO), have become effective on all retail deposits of less than Rs 3 crore. After this increase, now ordinary citizens will get attractive interest of 6.75% per annum on deposits of 444 days, whereas for senior citizens and super-senior citizens, this return figure has reached 7.50%.
Indian Overseas Bank has a clear classification of additional interest based on age and social class in its deposit rates:
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General Public: Increasing the interest rate on FD of 444 days from 6.60% for common citizens below 60 years of age. 6.75% per annum Has been done.
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Senior Citizens (60 to 79 years): Senior citizens get an additional premium of 50 basis points (0.50%) over the normal rates. Under this, now the elderly aged 60 years or above will be eligible for this period of 444 days. 7.25% annual interest will get.
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Super Senior Citizens – 80 years and above: The bank offers an additional interest of 75 basis points (0.75%) to its super senior citizens aged 80 years and above. After the revised rates, account holders of this category can avail special FD for 444 days. Full maximum interest of 7.50% per annum Will be achieved.
| depositor category | age limit | old interest rate | New Revised Interest Rate (Effective) | net increase |
| General Public | under 60 years | 6.60% | 6.75% | +0.15% (15 bps) |
| Senior Citizens | 60 years to 79 years | 7.10% | 7.25% | +0.15% (15 bps) |
| Super Senior Citizen | 80 years and above | 7.35% | 7.50% | +0.15% (15 bps) |
(Note: These rates are applicable for callable retail term deposits, NRE and NRO domestic term deposits below ₹3 crore.)
On one hand the bank has attracted medium term investors by increasing interest on the popular tenor of 444 days, on the other hand short term deposits i.e. 180 days to 269 days FD rates have been reduced by 25 basis points. The interest rate in this category has now been reduced from 4.75% to 4.50% Has been done. Apart from this, the interest rates for all other tenures like 1 year (6.50%), 1 to 2 years (6.40%), 2 to 3 years (6.40%) and 5 years tax saver FD (6.10%) will remain the same as before.
If an investor deposits an amount of ₹5,00,000 in this special scheme of Indian Overseas Bank for 444 days (approximately 1 year 2 months and 19 days), the estimated returns on the basis of quarterly compounding will be as follows:
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General Investor (at 6.75% interest):
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Total Deposit Amount: ₹5,00,000
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Estimated Interest Earning: Approx ₹42,650
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Total amount on maturity: Approx ₹5,42,650
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Senior Citizens (at 7.25% interest):
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Total Deposit Amount: ₹5,00,000
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Estimated Interest Earning: Approx ₹45,950
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Total amount on maturity: Approx ₹5,45,950
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Super Senior Citizen (at 7.50% interest):
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Total Deposit Amount: ₹5,00,000
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Estimated Interest Earning: Approx ₹47,620
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Total amount on maturity: Approx ₹5,47,620
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This 444 days fixed deposit scheme from Indian Overseas Bank has several additional banking features built into it:
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Minimum investment amount: Under this scheme, an account can be opened with a minimum amount of only ₹ 1,000. Maximum deposit should be less than ₹3 crore.
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Loan and Overdraft (Loan Against FD): There is no need to break FD prematurely in case of any emergency financial need. Customers can avail loan or overdraft facility up to 90% of their deposited amount and interest earned from the bank.
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Deposit Protection (DICGC Cover): Under the rules of DICGC, a subsidiary of the Reserve Bank, the principal and interest amount up to ₹ 5 lakh deposited in the bank remains fully legally insured and safe.
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Online and offline booking: Existing customers of the bank can book this FD in a few clicks from home without visiting the branch through IOB Mobile Banking App (IOB Mobile) or Net Banking Portal. New customers can open their special FD account through Aadhar Card, PAN Card and cheque/cash by visiting their nearest Indian Overseas Bank branch.