IOB Salary Account

Indian Overseas Bank

Indian Overseas Bank (IOB) is one of India's oldest public sector banks, founded on 10 February 1937 by M. Ct. M. Chidambaram Chettyar with a clear mandate to support overseas Indian trade and remittances. Nationalised in 1969 alongside 13 other commercial banks, IOB has been regulated by the Reserve Bank of India (RBI) ever since and is on the RBI's Second Schedule list of banks. Headquartered in Chennai, the bank serves over 40 million customers through 3,300+ domestic branches — the bulk of which are concentrated in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana — and 4,000+ ATMs across India, with an overseas presence that historically extended to Singapore, Hong Kong, Colombo, Bangkok and Dubai. The IOB Salary Account is a zero-balance savings product designed for salaried employees whose employer has a corporate salary tie-up with the bank. The account earns 2.7% p.a. interest on daily balances, which is calculated on a quarterly compounding basis as per RBI's savings account rate guidelines, and the Monthly Average Balance (MAB) requirement is fully waived for the entire tenure of active salary credits — meaning no non-maintenance charge is levied as long as the employer routes the monthly credit through IOB. Account holders receive a complimentary IOB Salary Account Debit Card (RuPay network by default, with Visa/MasterCard variants available for select corporate tie-ups) and free, unlimited NEFT and RTGS transactions through any IOB channel — branch, internet banking, mobile banking, or the IOB Mobile / IOBMobile app. The account is bundled with a complimentary personal accident insurance cover (death due to accident) and discounts on IOB locker rentals, retail loan processing fees and demat account annual charges. All IOB Salary Account customers get free quarterly passbook updates, free email and SMS alerts on every debit/credit, and free e-statement download via IOB internet banking. A bundled free-at-source accident cover of up to ₹2 lakh is provided to salary-account customers where the corporate tie-up mandates the cover, and IOB also offers an optional premium upgrade path to IOB Diamond Salary Account for senior employees earning above ₹1 lakh per month. If the employee changes jobs and the new employer does not have an IOB tie-up — or salary credits stop for more than three consecutive months — the account is auto-converted to a regular IOB Savings Account. At that point the standard MAB and SMS/email alert charges of the equivalent IOB savings variant start to apply as per the bank's published tariff. Source: Indian Overseas Bank official website, updated May 2026.