Indian Overseas Bank Revises Interest Rates on 444-Day Term Deposits

MUMBAI — Public sector lender Indian Overseas Bank (IOB) has announced an upward revision in interest rates on its 444-day term deposits by up to 15 basis points. The change follows a periodic review conducted by the bank's Asset-Liability Committee (ALCO).

Under the revised structure, the interest rate on 444-day callable term deposits for amounts below ₹3 crore has been increased by 15 basis points, moving from 6.60 per cent to 6.75 per cent per annum. The new rates officially came into effect on November 10, 2026.

Additionally, the bank adjusted rates for other variations of the 444-day deposit scheme. The 444-day non-callable term deposit, which is applicable for deposits exceeding ₹1 crore, now yields 6.85 per cent per annum, representing a 10 basis point increase from its previous rate of 6.75 per cent. Similarly, the interest rate on 444-day Non-Resident External (NRE) term deposits has been raised from 6.60 per cent to 6.75 per cent per annum.

Special provisions for senior citizens and super senior citizens remain in place. Senior citizens aged 60 and above continue to qualify for an additional 0.50 per cent interest, while super senior citizens aged 80 and above receive an additional 0.75 per cent. Consequently, the total return on the 444-day callable term deposit reaches 7.25 per cent per annum for senior citizens and 7.50 per cent per annum for super senior citizens.

The bank clarified that interest rates across all other tenures—covering callable, non-callable, NRE term deposits, and Non-Resident Ordinary (NRO) retail term deposits—remain unchanged.

"Financial institutions regularly evaluate their asset-liability structures to manage liquidity and optimize deposit mobilization. Adjusting rates for specific tenures, such as the 444-day deposit scheme, allows banks to strategically attract stable retail and institutional capital while supporting specific depositor segments like senior citizens. For businesses and individual depositors, tracking these targeted rate revisions is essential for effective treasury and personal financial planning." — Dr. Shishir Gupta, Founder & CEO, StartupLanes