Introduction

Indian Overseas Bank (IOB) is a well-established entity in the Indian banking sector. It is known for providing a range of financial services to a varied clientele, including Non-Resident Indians (NRIs).

In 2024, IOB continues to offer Non-Resident Ordinary (NRO) Fixed Deposits (FDs) aimed at NRIs who wish to invest their earnings in India securely. In this blog, we provide a detailed overview of IOB's NRO FD options, discussing the current fixed deposit rates, features specific to the needs of NRIs, and the essential aspects of these financial products.

IOB NRO FD: An Overview

The IOB NRO FD is a financial instrument designed for non-resident Indians seeking attractive returns on rupee funds deposited in India. This fixed deposit scheme stands out, especially with the highly competitive IOB NRO FD rates 2024.

Whether you're an NRI looking for a short-term deposit or a long-term investment avenue, IOB's NRO FD offers flexibility, security, and profitability. 

The bank's transparent policies and additional interest provisions for senior citizens make it a preferred choice. Furthermore, with the recent revision in the IOB NRO FD rates, potential investors can expect even better returns on their investments, reinforcing IOB's commitment to customer satisfaction.

IOB NRO FD Interest Rates for 2024

One of the primary factors influencing an investor's decision to opt for a fixed deposit is the interest rate offered. The IOB NRO FD rates have been designed to provide lucrative returns to its customers. Below is a comprehensive table detailing the IOB NRO FD rates 2024 for deposits below Rs. 2 Crore:

Deposits of Rs. 2 Crore and Above

Investors looking to invest a substantial amount in the IOB NRO FD must follow specific guidelines. When the deposit amount is Rs. 2 Crore or more, the branch requires prior permission from the Treasury Department at the Central Office regarding the rate of interest. This provision ensures that large investments are handled carefully and diligently, offering the best possible rates to the investor after thorough deliberation.

Loan Against IOB NRO FD

A unique feature of the IOB NRO FD is the facility to avail loans against fixed deposits. This provision is especially beneficial for those who might face sudden financial needs and are hesitant to break their fixed deposits prematurely:

• Loan Facility: NRI depositors or third parties can obtain loans or overdrafts against the security of their NRO FDs. This feature ensures that the depositor's investment remains intact while they can address their immediate financial requirements.

• Loans in Foreign Currency: IOB offers this facility against the security of term deposits in India for those seeking loans in foreign currency. These loans can be procured through IOB's correspondent banks, ensuring a smooth and hassle-free process.

• Avoid Premature Withdrawal: The primary advantage of this feature is that depositors can avoid the penalties and loss of interest associated with premature withdrawal. By taking a loan against their FD, they can ensure that their investment continues to earn interest while they address their financial needs.

By offering such flexible options, IOB ensures its customers can navigate financial challenges without compromising their investments.

In Conclusion 

The IOB NRO FD offers features that may appeal to NRIs seeking to invest in fixed deposits. It includes competitive interest rates and the option for loans against deposits, catering to both short-term and long-term financial planning needs. Indian Overseas Bank provides a clear interest rate structure and certain additional benefits that could interest NRIs considering financial investments in India. For those evaluating their options, the IOB NRO FD is a potential choice to explore.

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FAQs

What is the significance of the revised rates introduced on 10.04.2023 for IOB NRO FD?

The revised rates reflect the bank's response to the prevailing economic conditions, ensuring that depositors get competitive returns on their investments.

Can I avail a loan against my IOB NRO FD?

Yes, IOB offers the facility to obtain loans or overdrafts against the security of your NRO FD, allowing you to address financial needs without breaking the deposit.

Are the interest rates for IOB Tax Saver Deposit different from regular NRO FD rates?

Yes, the interest rate for IOB Tax Saver Deposit remains unchanged at 6.50%, irrespective of the regular NRO FD rates.

How are senior citizens benefited in terms of interest rates with IOB NRO FD?

Senior citizens get an additional interest rate of 0.50%, and super senior citizens (aged 80 years and above) receive an additional rate of 0.75%.

Is there a penalty for premature withdrawal of the IOB NRO FD?

Yes, depending on the deposit amount, penalties ranging from 0.50% to 1.00% are levied on premature withdrawals.

How frequently does IOB revise its NRO FD rates?

The revision of rates is based on economic conditions and the bank's discretion. The rates provided in this article were revised on 10.04.2023.

Can I open an IOB NRO FD online?

While the article doesn't specify online opening, it's advisable to visit IOB's official website or contact the bank directly for online account opening procedures.

Are the interest earnings on IOB NRO FD taxable?

Yes, the interest earned on NRO FDs is subject to tax as per the prevailing rates for the relevant financial year.

What is the minimum deposit period for IOB NRO FD?

The minimum deposit period for IOB NRO FD is seven days, with a minimum amount of Rs. 1.00 Lakh.

Is the interest rate for deposits above Rs. 2 Crore fixed?

No, for deposits of Rs. 2 Crore and above, the branch requires prior permission regarding the rate of interest from the Treasury Department at the Central Office.