Even as the Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25 per cent amid the West Asia conflict, public sector bank Indian Overseas Bank (IOB) has announced an upward revision in interest rates for its domestic non-callable fixed deposits (FDs). According to the information shared, the decision was finalised during the bank’s recent Asset-Liability Committee (ALCO) meeting to align with changing market conditions. The new rates will take effect immediately, from today, June 11, 2026, and will apply to select medium-term tenures, including the popular 444-day period.
What is a non-callable fixed deposit?
A non-callable fixed deposit (FD) is a term deposit where investors cannot withdraw the money from the bank before the maturity period. Unlike normal FD, which allows bank customers to withdraw the deposit early by paying some amount as a penalty, a non-callable FD locks in the total amount for the entire agreed-upon tenure.
Increases non-callable FD rates by 10 bsp
The bank has implemented a 10 basis points (bsp) (0.10 per cent) interest rate hike across three specific time frames.
However, there is no change in interest rates for regular fixed deposits; NRO accounts and NRE term deposits remain entirely unchanged.
The revised FD rates will be applicable to deposit terms of 1 year, more than 1 year to less than 2 years and 44 days.
Revised rates for non-callable FDs
| Period of Deposit | Old Rate (Per Year) | New Rate (Per Year) Effective 11.06.2026 |
| 1 Year | 6.60% | 6.70% |
| More than 1 Year to Less than 2 Years (except 444 days) | 6.50% | 6.60% |
| 444 Days | 6.65% | 6.75% |
Additional benefit for senior citizens, super senior citizens
According to the bank, eligible senior citizens (aged 60 and above) will continue to get the benefit standard additional interest rate of 0.50 per cent, and super senior citizens (aged 80 and above) will receive an additional 0.75 per cent over the revised baseline rates listed above.
RBI keeps policy rate unchanged
Earlier, the Reserve Bank of India (RBI) on Friday kept its benchmark repo rate unchanged at 5.25 per cent, for the second time in a row.
ALSO READ | HDFC Bank home, car, personal loan EMIs may rise even as RBI keeps repo rate unchanged – Here’s why
