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The decisions of the Monetary Policy Committee meeting were announced in the Reserve Bank of India on April 8. It has been decided to maintain the repo rate at 5.25%. Even after this, many banks have revised the interest rates of loans and fixed deposits. After HDFC Bank, public sector Indian Overseas Bank (IOB) has also been included in this list. MCLR has been reduced by 5 basis points for some tenures. The new rates are scheduled to come into effect from April 15, 2026.

This public sector bank has decided to reduce the overnight, 1 year and 2 year MCLR by 50 bps. Earlier the overnight MCLR was 7.95%, which has been reduced to 7.90%. The bank has decided to reduce the rates from 8.80% to 8.75% for 1 year and 2 year tenure.

No change in remaining tenure

Rates have not been revised for any other tenure. MCLR for 1 month is 8.20%, for 3 months is 8.40%, for 6 months is 8.65% and for 3 years is 8.85%. Earlier, the bank had also cut MCLR on March 15. The rates were reduced from 8.30% to 8.20% for 1 month tenure. Let us tell you that MCLR is the minimum rates, on the basis of which banks determine the interest rates for loans. These keep changing from time to time. This decision of IOB will affect all types of loans.

Check new MCLR rates here

No change in FD interest rates

There has been no change in the interest rates of fixed deposits in the bank. The last time the interest rate was changed was in December 2025. The bank is offering interest ranging from 3.50% to 6.60% to common citizens on investments ranging from 7 days to 3 years and above. An investment of less than Rs 3 crore can be made. The minimum limit is Rs 1 lakh.

The bank is also offering 0.50% additional interest to senior citizens and 0.75% additional interest to super senior citizens. The highest return is available on fixed deposit tenure of 444 days. Interest rates keep changing. Therefore, before investing, it is advisable to visit the bank’s official website or nearest branch to verify the rates.

Check new rates here