Indian Overseas Bank Hikes Interest Rates, Launches New Products, Expands Network

Public sector Indian Overseas Bank (IOB), a public sector bank, celebrated its 88th annual Foundation Day on February 10, 2023, by unveiling plans for expansion and launching a range of financial products. IOB announced the opening of 88 new branches across the country and a 20 bps increase in interest rates on retail term deposits for the 444-day bucket, effective from February 10, 2024.

Now retail term depositors will get an interest rate of 7.30 per cent, Senior Citizens will get 7.80 per cent, and Super Senior Citizens to get 8.05 per cent for the fresh term deposit opened for 444 days. The offer is valid till March 3, 2024.

Further, IOB introduced a Green Deposit Scheme under retail term deposits (less than Rs. 2 crore) that offers a tenor of 999 days with an interest rate of 6.85 per cent. It is 5 basis points higher than the regular term deposit rate, the bank said. Senior citizens aged 60 years and above will receive an additional 50 bps premium, while super senior citizens a 75 bps premium over these rates.

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Other Products

Digital Document Execution: IOB announced the introduction of Digital Document Execution (DDE), facilitating seamless online locker agreements. The DDE facility enables the online execution of agreements through the Digital Document Execution platform by the National E-Governance Services Limited (NeSL). IOB's customer-centric approach eliminates the need for physical branch visits, queueing for stamp paper, and geographical inconveniences. The 24/7 availability of online locker agreements enhances customer convenience, reducing the execution turnaround time to just two to three minutes.

IOB FREEDOM Savings and Current Account variant: The bank also launched IOB Freedom Savings and Current Account variants, which claim riddance from all charges, along with no compulsion to maintain a minimum balance in exchange for an annual fee.