IOB Savings Account Interest Rate 2026
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Quick Answer
Indian Overseas Bank currently offers a savings account interest rate of 2.75% p.a.. Interest is calculated on daily closing balance and credited quarterly.
IOB Savings Account Interest — Rates at a Glance
| All balances | 2.75% p.a. |
| Interest credit frequency | Quarterly |
| Calculation basis | Daily closing balance |
Rates are indicative as of 2026-04-07. Verify with Indian Overseas Bank official website before investing.
Key Things to Know
- 1Indian Overseas Bank savings rate: 2.75% p.a.
- 2Interest calculated on daily closing balance, credited quarterly
- 3Minimum balance requirement varies by account type (₹500–5,000 for regular branches)
- 4Interest income up to ₹10,000/year exempt from tax (Section 80TTA)
- 5Zero-balance accounts available (BSBD/Jan Dhan accounts)
- 6Free NEFT/RTGS/IMPS transfers via net banking
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Frequently Asked Questions
What is IOB savings account interest rate 2026?
Indian Overseas Bank offers 2.75% p.a. on savings accounts. The rate is uniform across all balance amounts.
How is savings account interest calculated in IOB?
Interest is calculated on the daily closing balance and credited to your account quarterly. Formula: (Daily balance × Rate × Number of days) / 365.
What is the minimum balance for IOB savings account?
Public sector banks like IOB typically require ₹500–₹5,000 minimum balance in regular branches.
Is IOB savings account interest taxable?
Yes, savings account interest is taxable as per your income slab. However, interest up to ₹10,000 per year is exempt under Section 80TTA (₹50,000 for senior citizens under 80TTB).