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.
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.
The interest rates provided below apply to domestic and NRO term deposits.
|Deposit Tenure||Interest 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 days||3.25#||3.00|
|15 days to 30 days||3.25||3.00|
|31 days to 45 days||3.25||3.00|
|46 days to 90 days||4.25||3.20|
|91 days to 179 days||4.25||3.25|
|180 days to 269 days||4.75||3.25|
|270 days < 1 year||4.75||3.25|
|1 year > 2 years||5.25||3.50|
|2 years > 3 years||5.30||3.50|
|3 years > 5 years||5.30||3.50|
|5 years > 8 years||5.30||3.50|
|8 years > 10 years||5.30||3.50|
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.
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 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.
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.
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.
Visit our easy-to-use FD calculator page to predict the returns you may receive upon putting your money in a fixed deposit account.
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.
The following penalty policies are applicable in the case of premature withdrawal for domestic and NRO Term Deposits:
|Deposit < Rs.5 lakh||Withdrawn on or after completing 12 months||Nil|
|Deposit < Rs.5 lakh||Withdrawn before completing 12 months||0.50%|
|Deposits of Rs.5 lakh and above||Withdrawn prematurely||1.00%|
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, only the first account holder will be eligible to get income tax benefits under Section 80C of the Income Tax Act, 1961.
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.