IOB has always been one of the highly trusted public sector banks among conservative investors for securing surety and promising returns. The bank, in the year 2025 also, goes on to offer attractive FD schemes with competitive interest rates for different tenures. A featured product is the long-term FD, which can generate interest of ₹30,908 on the principal sum of ₹2 lakhs, thereby, providing a safe option for all those who wish to grow their savings.
Interest Rates and Durations Available
As of 2025, IOB has fixed deposit interest rates from 6.50% to 7.30% per annum according to deposit tenure. Senior citizens receive an extra 0.50% interest rate, bringing in higher returns. For example, by depositing ₹2 lakh for a tenure of 3 years at 7.10% per annum, the maturity amount will be approximately ₹2,30,908, thereby accruing around ₹30,908 as the interest amount. Being at par with market conditions and policies under the Reserve Bank of India (RBI), these rates are revised from time to time to give competition and optimum yield to the deposit holders.
Why Choose Indian Overseas Bank FD
Some of the benefits of IOB Fixed Deposits are flexible tenure options from 7 days to 10 years, automatic renewals, and loans or overdraft facilities against your FD. These deposits are further insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor, which adds an extra safety layer.
Ideal for Conservative and Senior Investors
For the cautious investors opting safety over risk, IOB-FDs can be a dependable choice. Being a senior citizen means you are eligible for higher interest rates and may enjoy regular income with monthly or quarterly payouts, making IOB FD schemes a good instrument for preserving wealth with some assured growth.
Conclusion
In 2025, Indian Overseas Bank continues to hold trinity of trust, safety, and remunerative returns through its Fixed Deposit schemes. Investing ₹2 lakhs and earning ₹30,908 in three years for assured financial stability is a trademark for value of disciplined savings with a trusted bank.
