Indian Overseas Bank has announced a revision in interest rates on its non-callable fixed deposits, effective June 11, 2026. The bank has increased rates by 10 basis points on select tenures, offering higher returns to depositors.
Revised Interest Rates for Non-Callable FDs
The revised rates apply to non-callable fixed deposits, which cannot be prematurely withdrawn. For general citizens, the interest rates now range from 6.50% to 7.25% per annum, depending on the tenure. Senior citizens will receive an additional 0.50% per annum, bringing their rates up to 7.75%.
Tenure-wise Breakdown
- 46 days to 90 days: 6.50% for general, 7.00% for senior citizens
- 91 days to 180 days: 6.75% for general, 7.25% for senior citizens
- 181 days to 1 year: 7.00% for general, 7.50% for senior citizens
- 1 year to 2 years: 7.25% for general, 7.75% for senior citizens
- Above 2 years up to 5 years: 7.00% for general, 7.50% for senior citizens
Key Features of Non-Callable FDs
Non-callable fixed deposits offer higher interest rates compared to regular FDs, but they come with a lock-in period during which premature withdrawal is not allowed. This makes them suitable for investors who can commit their funds for the entire tenure. The bank has also clarified that the revised rates are applicable for deposits below ₹2 crore.
Additional Benefits for Senior Citizens
Senior citizens continue to enjoy an extra 0.50% interest rate over the general category. This is in line with the bank's policy to provide better returns for elderly depositors. The revised rates are effective from June 11, 2026, and will remain in force until further notice.
Indian Overseas Bank has advised customers to check the official website or visit their nearest branch for more details. The move is expected to attract more depositors looking for higher fixed-income returns amidst a stable interest rate environment.
