Bank of India Recurring Deposit (RD) Rates

Bank of India offers various types of deposit options, and one of the most systematic and secure means of depositing is the Recurring Deposit.  RDs are ideal for those looking to secure their financial future as they allow account holders to deposit a fixed amount every month, ensuring a steady accumulation of savings over time.

In this article, we will delve deeper into the Bank of India RD interest rates, types, features, application procedure and much more.

Bank of India Recurring Deposit Scheme Highlights For 2025

Let us take a glance at the Bank of India Recurring Deposit Scheme Highlights for 2025:

Bank of India RD interest rates 2025

Bank of India offers lucrative interest rates for its customers, allowing them to grow their income systematically and securely. Here is the interest rate table applicable to the general public as given below:

Bank of India RD interest rates 2025 for senior citizens

The below table provides the RD interest rates 2025 for senior citizens in Bank of India:

Types of Bank of India RD Accounts

BOI offers two types of recurring deposit accounts to cater to diverse customer requirements, which are as follows:

BOI Regular Recurring Deposit Account:

The regular recurring deposit account from the Bank of India offers customers an attractive interest rate. It mainly caters to individual customers, which can be single accounts, joint accounts, minors and physically disabled persons. The minimum amount of instalment is Rs. 500 and in multiples of 500 with a maximum limit of Rs. 10 lakh. Moreover, the interest payable is compounded on a quarterly basis, and the default KYC norms are applicable to this type of account, like any other deposit scheme.

Star Flexi Recurring Deposit:

It is a flexible recurring deposit scheme offered by the Bank of India, allowing customers to deposit more than the predetermined amount; it is fixed at Rs. 500 in metro and urban branches and Rs. 100 in rural and semi-urban branches. The core amount earns the interest at the prevailing rates at the opening of the account, while the surplus amount earns the interest at a prevailing rate on the date of making the deposit. Individuals, including minors, can apply for this type of scheme, such as regular recurring deposit accounts.

Features of Bank of India RD Schemes 

Bank of India offers attractive rates on its recurring deposits and various other perks. Let us take a closer look at some of the key features of Bank of India:

• It offers a systematic and secure way to grow your hard-earned money.
• The minimum deposit amount is Rs. 500, and the upper limit is Rs. 10 lakh.
• Senior citizens 60 years of age and above but less than 80 years of age will be entitled to receive an additional rate of 0.50% for a tenure ranging from 6 months to 3 years. Additionally, senior citizens are entitled to a 0.75% additional rate for a tenure of 3 to 10 years.
• The interest rates are compounded on a quarterly basis.
• The TDS deduction will be as per the existing norms at the time of account opening.
• BOI offers an auto debit facility linked with your recurring deposit account, which allows you to save a fixed sum automatically every month.
• You can also make premature withdrawals; however, they are subject to certain penalties.

How Do You Calculate the Bank of India RD Interest Rate?

The RD interest offered by the Bank of India is compounded on a quarterly basis, allowing you to leverage the compounding benefits. Let's now have a quick look at the calculation of interest with the help of a manual formula. 

M = R x {(1 + n) x n – 1} / 1- (1 + i) (-1/3)

Here,

M = Maturity amount

R = Monthly deposits

n = Tenure

i = Rate of interest

Let us understand the calculation of Bank of India RD interest rates with the help of an example:

Miss Mukherjee starts a monthly RD of Rs. 2000 for a duration of 3 years. The rate of interest is 7% per annum; now let us find out the interest earned by Miss Mukherjee over the tenure.

Where:

R = Rs. 2000

i = 7% per annum or 0.07/4 = 0.0175 (quarterly)

n = 12 quarters

M = Rs. 2000 [(1 + 0.0175) x 12 - 1] / (1 - (1 + 0.0175) (-1/3))

M = Rs. 80,274.6

Hence, the maturity amount is Rs. 80,274.6.

Total amount deposited by Miss Mukherjee = Rs. 2000 × 36 = Rs. 72,000

Interest earned = Rs. 80,274.6 - Rs. 72,000 =  Rs. 8,274.6

Therefore, Miss Mukherjee will earn Rs. 8,274.6 as interest over the tenure.

In seconds, you can conveniently calculate the estimated returns by putting the tenure and monthly deposit amount through the RD Calculator.

Eligibility for Opening Bank of India RD Account

The following is a list of eligible individuals who can open a recurring deposit account at the Bank of India (BOI):

• Individuals (Single/Joint)
• Hindu Undivided Families (HUF)
• Differently-abled individuals
• Minor accounts managed by the legal guardians

Documents Required For Opening Bank of India RD Account

Listed below are the documents required for opening an RD account with Bank of India:

• Identity Proof
• Proof of Address
• Passport size photograph
• Recurring deposit account opening form

How to Open a Bank of India RD Account?

You can start a recurring deposit account in Bank of India both in an online and offline mode. Here are the steps guiding you to open a Bank of India RD Account:

Opening BOI RD via Online:

Follow the steps given below for online mode:

1. Log in to your BOI net banking portal using your credentials. If you are a new user, register to get started.
2. Once you have logged in, navigate to the deposit section, click on the "Recurring Deposit" option, and select "Open Recurring Deposit" to open a recurring deposit option.
3. Then, a recurring deposit application form will appear on your screen, where you must enter some of your basic details.
4. Choose your monthly deposit and tenure. You can also opt for the auto-debit feature to ensure a smooth monthly deposit from your chosen savings account.
5. Once you have entered all your information, verify it and submit your request.

Opening BOI RD via. Offline:

Follow the steps below for offline mode:

1. Visit your nearest BOI bank branch along with the necessary documents such as proof of address, identity proof, etc.
2. Ask for a recurring deposit account opening from the service desk and fill it up carefully.
3. Attach all the necessary documents with the application form and submit it to the concerned executive.
4. After verification, the banking executive will provide you with an acknowledgement slip confirming your application request.

Upon successfully opening your RD account, you will receive your RD passbook containing your account details.

How to Close Bank of India RD Account?

There can be circumstances when you might need to close your recurring deposit account on a premature basis. Here are the steps guiding you to close your Bank of India recurring deposit account:

1. To close your RD prematurely, visit your nearest bank branch and obtain an RD account closure form.
2. Fill out the details carefully, attach your KYC documents, and submit them to the concerned officer. These KYC documents serve as proof of identity and address. Consider submitting the RD passbook or any other relevant document.
3. After verification, the banker will transfer your RD balance to your chosen savings account. After that, you can make a cash withdrawal based on your preference.

Benefits of Bank of India RD Account

The following pointers feature some of the benefits you can utilise by opening a recurring deposit account at the Bank of India:

• The Bank of India offers multiple types of recurring deposit schemes that allow individuals to choose the one that best suits their convenience and financial stability.
• The Bank of India allows you to deposit in installments rather than using a lumpsum at once. 
• The Bank of India offers competitive interest rates for the general public and senior citizens, enabling account holders to earn handsome returns on their monthly investments over time.
• The Bank of India Recurring Deposit accounts offer better interest rates for senior citizens, which can reach as high as 7.75%. Senior citizens are also eligible for additional interest based on certain bank terms and conditions.

Bank of India RD Premature Withdrawal Rules

Bank of India allows its customers to make premature withdrawals for its customers. If the account is closed within the first three months of opening, the bank will not provide any interest, and the principal amount will be transferred to your chosen savings account. The premature withdrawal is subject to a certain penalty charge, and the applicable amount will be reduced from the last quarter.

The attractive Bank of India RD interest rates, combined with the power of compounding, make it a preferred choice for those seeking guaranteed returns with minimal risk. Whether saving for short-term goals or long-term financial security, the BOI RD caters to diverse financial needs, offering both stability and growth.