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Bank of India Fixed Deposit (FD) Rates

Updated on: Jan 2nd, 2023


9 min read

Bank of India offers fixed deposit schemes that help you put that lump sum amount you have saved over a period. Also, you can earn interest on the amount deposited. There are multiple FD schemes for you to choose from based on your goals and requirements. Usually, the higher the tenure, the higher the interest rate.

Find out all the relevant details on Bank of India FD schemes here.

Latest Update

RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.

Fixed Deposit Interest Rates 2021 of Bank of India

The interest rates provided below apply to domestic and NRO term deposits.

Deposit TenureInterest Rates for Deposits < Rs.2 Crore (Effective from 1 October 2020)Interest Rates for Deposits of Rs.2 Crore > Rs.10 Crore (Effective from 1 September 2020)
7 days to 14 days3.25#3.00
15 days to 30 days3.253.00
31 days to 45 days3.253.00
46 days to 90 days4.253.20
91 days to 179 days4.253.25
180 days to 269 days4.753.25
270 days < 1 year4.753.25
1 year > 2 years5.253.50
2 years > 3 years5.303.50
3 years > 5 years5.303.50
5 years > 8 years5.303.50
8 years > 10 years5.303.50

Different Types of Bank of India FD Schemes

Double Benefit Term Deposit

This scheme best suits the short and medium-term investment plans ranging from 12 months up to 120 months. The scheme provides a higher return than other FD schemes as the interest is compounded quarterly. The principal and the accrued interest are only paid at the end of the tenure, i.e. on maturity.

Fixed Deposit

The scheme requires you to open a savings account and link it to the FD account. The interest earned on the FD account will be disbursed to the linked savings account upon completing 6 months. Linking the two accounts will facilitate instant disbursement of interest and reduce the inconvenience in following up about the interest payout. Further, the disbursed interest will earn interest in the savings account.

Short Deposit

Short deposit scheme comes with a deposit tenure of fewer than six months. Since the deposits are repayable within six months, the interest will be calculated based on the actual number of days the deposit stayed in the account based on 365 days in a year.

Quarterly/Monthly Deposit

Get fixed monthly interest income on the amount you have invested in this account. The deposit in the account remains intact through the deposit tenure. You can choose to get a Quarterly/Monthly Income Certificate. The quarterly/monthly interest will be credited to your savings/current account. You can also choose to credit the monthly interest into a recurring deposit account by setting instructions. The minimum deposit amount allowed is Rs.10,000 in metro and urban branches and Rs.5,000 at rural and semi-urban branches. It is Rs.5,000 for senior citizens.

Motor Accident Claimant Annuity Deposit (MACAD)

Based on the directions of the Honourable High Court of Delhi and IBA, MACAD and MACT SB accounts are formulated. The product facilitates the disbursement of compensation to the victims of road accidents. The victim will receive monthly instalments of the claims received that comprise a principal and interest part. The instalments will be disbursed to the MACT SB account for the victim to access the funds.

Bank of India FD Special Features and Benefits

  • The minimum tenure for FD is 7 days, and the maximum tenure is 10 years.
  • Choose the FD scheme based on your requirement.
  • Open tax-saving deposits to save on income tax.
  • Interest can be paid out monthly, quarterly, half-yearly, or at the end of the tenure.
  • Premature withdrawal is allowed subject to certain conditions.
  • Nomination facility is available.
  • Advance facility may not be available on all schemes.

Basic Eligibility Criteria for Bank of India FD

  • Individual — Single Accounts
  • Two or more individuals — Joint Accounts
  • Sole Proprietary Concerns
  • Partnership Firms
  • Illiterate Persons
  • Blind Persons
  • Minors
  • Limited Companies
  • Associations, Clubs, Societies, etc.
  • Trusts
  • Joint Hindu Families (accounts of non-trading nature only)
  • Municipalities
  • Government and Quasi-Government Bodies
  • Panchayats
  • Religious Institutions
  • Educational Institutions (including Universities)
  • Charitable Institutions

Documents Required

  • Recent photograph
  • Proof of Address
    • Passport
    • Aadhaar card
    • Bank statement with a cheque
  • Proof of Identification
    • Passport
    • PAN card
    • Voter ID
    • Driver’s license
    • Aadhaar card

Tax Benefits on Bank of India Fixed Deposit

Capital Gain Tax Saving Scheme

The scheme is launched under Capital Gains Accounts Scheme, 1988 where taxpayers can claim exemption u/s 54 for capital gains. The scheme is available in non-rural branches. You must have a savings account with the bank and a cumulative or non-cumulative term deposit account.

Star Sunidhi Tax-Saving Deposit Scheme

The account serves as a long-term savings platform with providing income tax benefits u/s 80C of the Income Tax Act, 1961. Individuals and HUFs having PAN can open an account under the scheme. The minimum deposit amount is Rs.10,000, and the maximum is Rs.1.5 lakh.

The lock-in period for the account is 5 years, and it can go up to 10 years. The interest rates applicable to regular term deposits apply to this scheme as well. Premature withdrawal is not allowed. The scheme is available at all the bank branches in India and offers a nomination facility.

FD Interest Rate Calculator

Visit our easy-to-use FD calculator page to predict the returns you may receive upon putting your money in a fixed deposit account.

Frequently Asked Questions

How is interest calculated in the Fixed Deposit scheme?

The interest will be calculated based on the number of completed months. If there is a terminal month that is not complete, the actual number of days the deposit stayed in the FD account will be considered against the 365 days in a year for calculations.

Is a penalty applicable in the case of premature withdrawal for domestic customers?

The following penalty policies are applicable in the case of premature withdrawal for domestic and NRO Term Deposits:

Deposit AmountCriteriaPenalty
Deposit < Rs.5 lakhWithdrawn on or after completing 12 monthsNil
Deposit < Rs.5 lakhWithdrawn before completing 12 months0.50%
Deposits of Rs.5 lakh and aboveWithdrawn prematurely1.00%
Can I get a loan against Star Sunidhi Tax-Saving Deposit Scheme?

No. The bank does not allow you to pledge the Star Sunidhi Tax-Saving Deposit Scheme certificate to get any loan or advance. The advance facility is not available until the account completes the lock-in period.

In the case of a joint account, can both the account holders get income tax benefits?

In the case of a joint account, only the first account holder will be eligible to get income tax benefits under Section 80C of the Income Tax Act, 1961.

Will senior citizens and bank staff get additional interest rates on deposits?

Senior citizens, senior citizen staff, and ex-staff must open a deposit account being the first account holders to be eligible for additional interest rates. An extra 0.50% and 1.50% interest rate will be provided over and above the card rates for senior citizens and staff (including ex-staff, senior citizen staff, spouse of deceased staff/ex-staff) respectively on deposits below Rs.2 crore. The account must have a tenure between six months and five years. For senior citizens, the minimum deposit amount to get the benefit is Rs.5,000.

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Quick Summary

Bank of India offers various fixed deposit schemes with different tenures and interest rates. A new rule by RBI states unclaimed, matured FD accounts will attract the lower of the savings account interest or contracted FD rate as interest. There are different types of FD schemes like Double Benefit Term Deposit, Fixed Deposit, Short Deposit, and Motor Accident Claimant Annuity Deposit among others. Basic eligibility criteria, tax benefits, and FD interest rate calculator are also provided.

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