Indian Overseas Bank raised interest rates on selected non-callable fixed deposit tenors for the general public, increasing the one-year rate to 6.7 percent from 6.6 percent and the more-than-one-year-to-less-than-two-year rate to 6.6 percent from 6.5 percent.
DETAILS OF THE RATE REVISION
The bank adjusted rates on a subset of its non-callable retail fixed deposits, a category that does not permit premature withdrawal by depositors before maturity. The 10-basis-point increase applied to three tenors, including the popular 444-day deposit, whose rate rose to 6.75 percent from 6.65 percent.
The move was narrow in scope, confined to selected tenors rather than an across-the-board re‑pricing of the deposit book. For the general public, the one-year rate rose to 6.7 percent, a 0.1 percentage point increase. For deposits exceeding one year but below two years, the rate was lifted to 6.6 percent, also up by 0.1 percentage point.
The revision was approved at the bank's Asset-Liability Committee meeting and took effect on 11 June 2026; regular fixed deposits and NRE and NRO term deposits were unchanged. Non-callable fixed deposits are designed for savers who commit to keeping their funds with the bank until maturity without early withdrawals, in exchange for higher returns.
MARKET CONTEXT
The bank said the decision was taken at its ALCO meeting to align with changing market conditions. Separately, state-owned Bank of Baroda and Canara Bank said on 10 June that they had revised their marginal cost of funds-based lending rates across select tenors, effective 12 June.
Eligible senior citizens (aged 60 and above) continue to receive an additional 0.50 percent, and super senior citizens (aged 80 and above) an additional 0.75 percent, over the revised rates.
Sources: The Hindu Business Line Banking