logo

Bank of India FD Interest Rates - Check BOI Fixed Deposit Types & Interest Rate

banner-img
author
verified
Manish Kothari
20 Likes | 755 days ago

Like

Share

isVerifiedExpertAuthor is a Zfunds Verified Expert
author
Manish Kothari
Gurugram
whatsapp

Bank of India Fixed Deposit Interest Rates

Fixed Deposits in Bank of India are one of the good options to park your savings for a specified tenure as per requirements. It is one of the most reliable in India. Bank of India offers great benefits to its investors like flexible tenure, higher returns, loans against FD, and many others. Bank of India offers a comparatively high rate of interest on fixed deposits in the industry depending upon the tenure of the FD. It also provides additional interest rate benefits to senior citizens. The tenure varies from 7 days to 10 years and the interest rate varies from 3.25% to 6.05%.

Bank of India Fixed Deposit Interest Rates

Revised Bank of India FD Interest Rates 2022 for Domestic & NRO Term Deposits  

The bank recently revised its interest rates on fixed tenure deposits. Here are the revised Bank of India FD interest rates 2022 along with their effective dates.

Period Per Annum Interest Rates (Deposits of up to Rs 2 Cr) (w.e.f. 16th December 2022) Per Annum Interest Rates (Deposits of Rs 2 to 10 Cr) (w.e.f. 20th August 2022)
1 year to less than 2 years (except 444 Days)6.006.25
444 days6.756.25
2 years to less than 3 years6.754.50
3 years to less than 5 years6.504.50
5 years to less than 8 years6.004.50
8 years & above to 10 years6.004.50

The above mentioned Bank of India fixed deposit interest rates are applicable only on minimum deposits of Rs. one lakh. Bank of India FD interest rates for senior citizens include an additional premium of 25 bps, over and above the existing 50 bps for retail term deposits. This additional interest rate of 75 bps is applicable on Bank of India fixed deposits of less than Rs. two crores and maturity periods of three years and above.

Revised Bank of India FD Interest Rates 2022 for Domestic & NRO Term Deposits above Rs. 10 Crores  

Bank of India fixed deposit interest rates of deposits above Rs. 10 crore are dynamic. You can visit your nearest branch to know about these latest interest rates.  

Bank of India Saving Bank Deposit Interest Rate 2022  

Apart from Bank of India fixed deposit interest rate, the interest offered on savings bank account was also recently revised. The latest numbers are as follows:

Savings Account Balance   Per Annum Interest Rates (w.e.f. 1st May 2022)

Up to Rs. 1.00 lakhs                                2.75

Above ₹ 1.00 lakhs                                 2.90

Features of Bank of India Fixed Deposit

Tenure: It offers fixed deposits with a minimum tenure of 7 days and a maximum tenure of 10 years.

Minimum Investment: The minimum amount to start FD with BOI is ₹10,000 for Metro & urban branches and Rs.5,000 for rural & semi-urban branches.

Interest Rate: BOI FD interest rate varies from 3.25% to 5.30% and it offers an additional 0.50% interest rate for senior citizens. An additional interest rate of 0.25% is also offered over & above the 0.50% in case of senior citizen deposits for a tenure of 5 years & above.

Loan Against FD: BOI also gives its investor a facility to avail a loan against their FD. Investors can take a loan of up to 90% of the FD amount.

Nomination facility:  It gives depositors the facility to add a nominee to their fixed deposit account.

Premature Withdrawal of Fixed Deposit

For deposits with an amount less than Rs.5 lakhs, the depositors can make premature withdrawals on or after completion of 1 year without any penalty.

For deposits with an amount less than Rs.5 lakhs, a penalty of 0.5% will be imposed on deposits made before completion of 1 year of the deposit.

For deposits with an amount more than Rs.5 lakhs, a penalty of 1% will be imposed on making a premature withdrawal of the deposit.

These rates for premature withdrawal are subject to revisions with a change in interest rates.

Types of Bank of India Fixed Deposit

Double Benefit Term Deposit :

Double benefit term deposit offers an interest rate that is compounded quarterly but is paid upon maturity. Unlike other schemes, the scheme doesn’t make yearly or half-year interest payouts rather the interest is paid along with the principal at the maturity of the deposit. This way this deposit provides a higher yield to depositors. 

The minimum tenure for this FD is 6 months with an upper limit tenure of 10 years. The scheme is beneficial for investments for short and medium-term horizons. 

Fixed/Short Term Deposit Scheme :

Fixed/Short term deposit scheme is a non-cumulative fixed deposit in which interest is paid half-yearly. These deposits are suitable for making short as well as long term investments as per the requirements of the individual. The tenure of short/fixed term deposits ranges from 7 days to 10 years.  And the minimum investment required in case of urban/metro branches is Rs.10,000 and Rs.5,000 in case of rural/semi-urban branches & senior citizen deposits.

Bank Of India Monthly/Quarterly Deposit Scheme :

In this scheme, the interest is not paid on maturity rather it is paid monthly or quarterly as per the payout option chosen by the investors. The monthly or quarterly interest on deposits is directly deposited into the current, savings or recurring deposit account of the individuals as per their instructions.

Star Sunidhi Tax-Saving Deposit Scheme :

As the name suggests, it is a tax-saving deposit scheme that offers a tax deduction of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act,1961. The minimum tenure for this FD is 5 years and the maximum is up to 10 years.

The minimum amount of investment allowed under this scheme is ₹10,000 with a maximum cap of Rs.1.5 lakh in a financial year.

Capital Gain Tax Saving Scheme :

Under this scheme, the individuals can claim tax exemptions under Section 54 for capital gains. This is a good scheme for people who have sold their capital assets and want to save capital gains tax by opening an account of the Capital Gain Tax Savings scheme. This scheme has two types of accounts: Account “A” for savings account and Account “B” for applicants willing to make a cumulative/non-cumulative term deposit.

Frequently Asked Questions :

Q. How do we get interest payments from FD ?

There are two types of FD: Cumulative and Non-cumulative. In cumulative FD, the interest amount gets reinvested annually and at maturity, the depositor gets the total interest and principal payment. And in Non-cumulative FD, the depositors can choose the option for interest payouts i.e quarterly, half-yearly, or annually.

Q. Is there any additional benefit for senior citizens deposits ?

Yes, FD gives additional interest rates for senior citizens. Additional interest rates can vary from 0.50% to 0.75% in case of Bank of India FDs and it differs from bank to bank.

Q. Is Tax applicable on FD ?

A. Interest earned on FDs is subject to TDS(Tax Deducted at Source) at a rate of 10% if the interest earned exceeds Rs.40,000 per financial year. In case PAN proof is not given to the bank, the TDS is deducted at the rate of 20% if the interest income exceeds Rs.40,000.

Q. Do the FDs offer tax benefits ?

A. If the tenure of the FD is 5 years or more, then only depositors can claim tax deductions of up to Rs.1.5 lakh per financial year under section 80C of the Income Tax Act,1961.

Q. What are the benefits of FD ?

A. FD helps us to earn interest on our savings as it provides a fixed rate of interest on deposits. Also, FDs have low risks associated with them and hence are considered as the safest mode for investment.

Also Read : 

Canara Bank Interest Rates

Punjab National Bank FD Rates

SBI FD Interest Rates

Axis Bank Fixed Deposit Rates

Bandhan Bank FD Interest Rates

 

Get Highest FD Returns, Earn up to 8.90% Interest*