Latest Bank of India FD Interest Rate April 2023
The Bank of India FD rates for the general public and senior citizens range from 3% to 7.65% on investment amounts less than ₹2 crore. However, for super senior citizens, the rate goes as high as 7.8%. Minimum tenure for BOI FD accounts starts from 7 days to a maximum duration of 10 years.
The Bank of India FD rates 2023 are different for different types of fixed deposit accounts such as Bank of India Monthly deposit scheme, Quarterly deposit scheme, Double Benefit Term Deposit scheme, Star Sunidhi Deposit scheme, etc. Moreover, there are certain penalties chargeable if the amount is withdrawn prematurely by the account holder.
Bank of India FD Interest Rates 2023 Highlights
| Interest Rate | 3% to 7.8% |
| Tenure | 7 days – 10 years |
| Minimum Deposit | ₹1 lakh |
| Maximum Deposit | No Upper limit |
| Lock-in Period | NA; (5 Years For Star Sunidhi Deposit Scheme) |
How to Calculate Bank FD Interest Rate?
There are mainly two methods of calculating interest earned from an FD account – simple interest and compound interest. Simple interest method lets you calculate the earned interest in case the rate of interest is charged on the principal directly.
1. Simple Interest Calculation
Simple Interest (SI) = (P * R * T)/100, where
- P = principal amount invested
- R = Rate of interest (%)
- T = Time
Let’s say you have invested ₹5 lakh for 8 years at 6% per annum interest. Therefore, in this case, the Principal (P) = ₹5 lakh, Rate (R) = 6%, Time (T) = 8 years
Therefore, Simple Interest= (5,00,000* 6*8)/100 = ₹2,40,000
This means that after 8 years, the maturity amount will be 5,00,000+2,40,000= ₹7,40,000
The other method that is used is compound interest. The compound interest method involves calculating the interest on the interest earned; this process goes on for the entire tenure.
2. Compound Interest Calculation
Maturity Amount (A)= P (1+r/n) ^ (n * t), where
- A = Maturity Amount
- P = principal amount invested
- r = Interest rate (In decimals)
- n = Number of compounding in a year
- t = Number of years
Let us take an example to understand the concept. For instance, let’s say you have invested ₹5,00,000 for 8 years at an interest rate of 6% per annum compounded quarterly.
Here,
- Principal (P)= ₹5,00,000
- Interest rate (r)= 6% (in decimals)
- Number of times interest is compounded = 4 times each year
- Tenure of investment = 8 years
Maturity Amount (A) = 5,00,000 (1+0.06/4) ^ (4*8)
Maturity Amount (A) = ₹8,05,162
Therefore, Compound Interest (CI) = ₹8,05,162 – ₹5,00,000 = ₹3,05,162
If you find it difficult to calculate the interest amount with such a tedious process, you can always use the Bank of India FD calculator given in their official website.
Factors Affecting Bank of India Fixed Deposit Interest Rates
Listed below are some of the factors affecting Bank of India FD rates:
1. Repo Rate Fluctuations
Repo rate fluctuations impact the FD rates. Repo rate is the rate of interest at which the Reserve Bank of India lends money to all commercial banks. As a result, the fluctuation in repo rates impacts the FD rates offered by banks in addition to the internal metrics.
2. Tenure of Investment
Usually, a fixed deposit with a longer tenure offers higher interest rates compared to a fixed deposit of shorter tenure.
3. Renewals
If you renew your FDs upon maturity, you can get a higher or lower interest rate depending on the rate of interest at the time of renewal.
4. Age
The age of the investor also affects the FD rates. For example, Bank of India offers additional interest rates of 25 basis points and 40 basis points for senior citizens and super senior citizen depositors on all FDs of above 3 years amounting to less than ₹2 crore.
BOI FD Interest Rate for General Public
The table shows the Bank of India FD interest rates applicable to the general public. The FD interest rate totally depends on the tenure and investment amount. The below table shows separate interest rates for deposits below ₹2 crore and those between ₹2 crore and ₹10 crore.
| Tenure | Interest on Deposits Below ₹2 Crore | Interest on Deposits Above ₹2 Crore but less than ₹10 crore |
| 7 days to 14 days | 3% | 4.50% |
| 15 days to 30 days | 3% | 4.50% |
| 31 days to 45 days | 3% | 4.50% |
| 46 days to 90 days | 4.50% | 4.75% |
| 91 days to 179 days | 4.50% | 5.25% |
| 180 days to 269 days | 5% | 5.40% |
| 270 days to less than 1 year | 5.50% | 5.40% |
| 1 Year to less than 2 years (Except 501 days) | 6% | 6.25% |
| 501 days | 7.15% | 6.25% |
| 2 years to less than 3 years | 6.75% | 4.50% |
| 3 years to less than 5 years | 6.50% | 4.50% |
| 5 years to less than 8 years | 6% | 4.50% |
| 8 years to 10 years | 6% | 4.50% |
Also Read
BOI FD Interest Rate for Senior Citizens
The table below shows the BOI FD interest rates applicable to senior citizens. Moreover, senior citizens can earn more interest than general citizens with Bank of India as the bank offers 0.5% p.a. additional interest to the senior citizens for deposits less than 2 crore.
| Tenure | Interest on Deposits Below ₹2 crores for Senior Citizens |
| 7 days to 14 days | 3% |
| 15 days to 30 days | 3% |
| 31 days to 45 days | 3% |
| 46 days to 90 days | 4.50% |
| 91 days to 179 days | 4.50% |
| 180 days to 269 days | 5.50% |
| 270 days to less than 1 year | 6% |
| 1 Year to less than 2 years (Except 501 days) | 6.50% |
| 501 days | 7.65% |
| 2 years to less than 3 years | 7.25% |
| 3 years to less than 5 years | 7.25% |
| 5 years to less than 8 years | 6.75% |
| 8 years to 10 years | 6.75% |
BOI FD Interest Rate for NRIs
Bank of India has different types of fixed deposit accounts for non-resident individuals which are as follows:
- NRE Term Deposit Account
- NRO term Deposit Account
- FCNR (B)
- RFC Term Deposit
1. Interest Rates for NRE Term Deposits
Non-Resident External term/fixed deposit accounts are special types of FD accounts designed for NRIs to hold their earnings generated from foreign countries in India. The following table shows the FD interest rates that BOI is offering on NRE term deposits.
| Tenure | Interest on Deposits Below ₹2 crore | Interest on Deposits Above ₹2 crore but less than ₹10 crore |
| 1 year to less than 2 years (except 501 days) | 6.00% | 6.25% |
| 501 days | 7.15% | 6.25% |
| 2 years to less than 3 years | 6.75% | 4.50% |
| 3 years to less than 5 years | 6.50% | 4.50% |
| 5 years to less than 8 years | 6.00% | 4.50% |
| 8 years to 10 years | 6.00% | 4.50% |
Note
For deposits of more than ₹ 10 crore, you have to contact your nearest Bank of India branch.
In case of premature withdrawals, no interest will be provided if the fund was kept with the bank for less than 12 months. In case of premature withdrawal after 1 year for accounts having an amount of ₹5 lakh and above, a penalty of 1% will be charged.
However, no penalty will be charged on deposits less than ₹ 5 lakh which are kept with the bank for 12 months or more.
2. Interest Rates for NRO Term Deposits
Non-Resident Ordinary (NRO) account is a type of term/fixed deposit account specially designed for the NRIs to hold and manage their earnings generated from India while residing overseas. The following table shows the rate of fixed/term deposits offered by BOI for non-resident ordinary term deposit accounts.
| Tenure | Interest on Deposits Below ₹2 crore | Interest on Deposits Above ₹2 crore but less than ₹10 crore |
| 7 days to 14 days | 3% | 4.50% |
| 15 days to 30 days | 3% | 4.50% |
| 31 days to 45 days | 3% | 4.50% |
| 46 days to 90 days | 4.50% | 4.75% |
| 91 days to 179 days | 4.50% | 5.25% |
| 180 days to 269 days | 5% | 5.40% |
| 270 days to less than 1 year | 5.50% | 5.40% |
| 1 Year to less than 2 years (Except 501 days) | 6% | 6.25% |
| 501 days | 7.15% | 6.25% |
| 2 years to less than 3 years | 6.75% | 4.50% |
| 3 years to less than 5 years | 6.50% | 4.50% |
| 5 years to less than 8 years | 6% | 4.50% |
| 8 years to 10 years | 6% | 4.50% |
3. BOI FCNR ‘B’ FD Interest Rate
FCNR ‘B’ stands for foreign currency non-resident bank accounts. It is a type of fixed/term deposit account that an NRI can hold in India for depositing money in foreign currency. The core benefit that this type of account is offering is that both the principal and the interest component are completely tax exempt.
| Currency | USD | GBP | EUR | JPY | CAD | AUD |
| Tenure | Interest Rate | Interest Rate | Interest Rate | Interest Rate | Interest Rate | Interest Rate |
| 1 year to less than 2 years | 5.00% | 3.70% | 0.02% | 0.55% | 0.99% | 2.60% |
| 2 years to less than 3 years | 4.00% | 2.50% | 0.21% | 0.55% | 2.05% | 1.42% |
| 3 years to less than 4 years | 3.35% | 2.55% | 0.36% | 0.54% | 2.27% | 1.78% |
| 4 years to less than 5 years | 3.25% | 2.60% | 0.46% | 0.55% | 2.33% | 2.05% |
| 5 years (Maximum) | 3.15 | 2.60 | 0.52 | 0.56 | 2.34 | 2.17 |
Note
For FCNR ‘B’ deposits, no interest will be provided in case of premature withdrawals if the funds were kept with the bank for not more than 12 months. However, in case the funds were kept with the bank for 12 months and above, a penalty of 1% is chargeable from the deposit date till the date the fund was held with the bank.
4. Interest Rate on RFC Term Deposits
RFC account stands for Resident Foreign Currency account. It is a type of fixed/term deposit account that is specially designed for Non-Resident Individuals (NRIs) who wish to maintain their earnings in foreign currencies in India.
Tenure | Interest rates based on currency | |
| USD | GBP | |
| 1 year to less than 2 years | 5.00% | 3.70% |
| 2 years to less than 3 years | 4.00% | 2.50% |
| 3 years (Maximum) | 3.35% | 2.55% |
BOI vs Other Bank FD Interest Rates
The following table shows the comparison between the Bank of India’s fixed deposit rates with other banks’ fixed deposit rates for investment amounts less than ₹2 crore. Please note that the interest rates applicable to senior citizens have also been included in the ranges:
| Bank Name | Tenure | Interest Rate |
| Bank of India | 7 days to 10 years | 3.00% to 7.65% (additional 0.90% for Super Seniors on certain tenors) |
| State Bank of India | 7 days to 10 years | 3.00% to 7.50% |
| Yes Bank | 7 days to 10 years | 3.25% to 8.00% |
| Central Bank of India | 7 days to 10 years | 4.00% to 7.25% |
| HDFC Bank | 7 days to 10 years | 3.00% to 7.75% |
| Bank of Baroda | 7 days to 10 years | 3.00% to 7.55% |
| IDFC First Bank | 7 days to 10 years | 3.50% to 8.25% |
| Punjab National Bank | 7 days to 10 years | 3.50% to 7.80% |
| Deutsche Bank | 7 days – 5 years | 3% – 7.75% |
| Indian Bank | 7 days to 5 years | 2.80% to 7.90% |
| Punjab and Sind Bank | 7 days – 10 years | 2.80% – 7.60% |
| Federal Bank | 7 days to 2223+ days | 3.00% to 7.75% |
| Canara Bank | 7 days to 10 years | 4.00% to 7.75% |
| IndusInd Bank | 7 days to 10 years | 3.50% to 8.25% |
| Bandhan Bank | 7 days to 10 years | 3.00% to 8.50% |
| UCO Bank | 7 days to 5+ years | 2.90% to 7.20% |
| Axis Bank | 7 days to 10 years | 3.50% to 8.01% |
| HSBC | 7 days to 5 years | 2.85% to 8.00% |
| Paytm Payments Bank | 7 days to 1 year | 2.75% to 5.5% |
| ICICI Bank | 7 days to 10 years | 3.00% to 7.60% |
| Indian Overseas Bank | 7 days to 10 years | 4.30% to 7.75% |
| Union Bank of India | 7 days to 10 years | 3.00% to 8.05% |
| DBS Bank | 7 days to 5 years and above | 2.5% to 8% |
| Kotak Mahindra Bank | 7 days to 10 years | 2.75% to 7.70% |
| RBL Bank | 7 days to 20 years | 3.50% to 8.30% |
| DBS Bank | 7 days to 5 years and above | 2.5% to 8% |
| IDBI Bank | 7 days to 20 years | 3.00% to 7.25% |
Features and Benefits of BOI Fixed Deposits
Listed below are some of the key features and benefits of fixed deposits offered by the Bank of India.
- The minimum tenure of investing in a BOI fixed deposit is 7 days.
- The maximum tenure of investing in a BOI fixed deposit is 10 years.
- Premature withdrawals are allowed in fixed deposits subject to the applicable penalty. However, in Star Sunidhi Deposit Scheme, there is a lock-in period of 5 years where no premature withdrawals are allowed.
- There is no upper limit set on maximum investment amount.
- Star Sunidhi Deposit Scheme offers a tax deduction benefit under Section 80C of the Income Tax Act up to ₹1.5 lakh.
- TDS is applicable on all general fixed deposits schemes as per the Income Tax norms.
- The interest pay-out takes place every quarter or at the time of maturity.
Different Types of BOI Fixed Deposit Schemes
There are different fixed deposit schemes offered by the Bank of India for Indian residents and NRIs. All these schemes are designed to serve a specific purpose so that it becomes beneficial and appropriate for the target customers. The different types are as follows:
- Bank of India Monthly deposit scheme
- Bank of India Quarterly deposit scheme
- Double Benefit Term Deposit scheme
- Fixed/Short term deposit scheme
- Star Sunidhi Deposit scheme
- NRE Term Deposit scheme
- NRO Term deposit scheme
- FCNR ‘B’ deposit scheme
- RFC Term Deposit scheme
- BOI MACAD Deposit scheme
1. Bank of India Monthly deposit scheme
- Minimum Deposit: ₹10,000 for metro and urban branches & ₹5000 for rural and semi-urban branches
- Maximum Deposit: No Upper Limit
- Tenure: 7 days to 10 years
- Interest Rate: 3% to 7.65%
- Payment of Interest: Monthly or quarterly
- Eligibility Criteria: Indian resident
2. Bank of India Quarterly deposit scheme
- Minimum Deposit: ₹10,000 for metro and urban branches & ₹5000 for rural and semi-urban branches.
- Maximum Deposit: No Upper Limit
- Tenure: 7 days to 10 years
- Interest Rate: 3% to 7.65%
- Payment of Interest: Monthly or quarterly
- Eligibility Criteria: Indian resident
3. BOI Double Benefit Term Deposit scheme
- Minimum Deposit: ₹10,000 for metro and urban branches & ₹5000 for rural and semi-urban branches.
- Maximum Deposit: No Upper Limit
- Tenure: 1 year to 10 years
- Interest Rate: 3% to 7.65%
- Payment of Interest: At the time of maturity taking the effect of quarterly compounding
- Eligibility Criteria: Indian resident
4. BOI Fixed/Short-term deposit scheme
- Minimum Deposit: Minimum amount is ₹1 lakh for short-term deposits.
- Maximum Deposit: No Upper Limit
- Interest Rate: 3% to 7.65%
- Payment of Interest: Half yearly on 1st Oct and 1st April.
- Eligibility Criteria: Indian resident
5. Star Sunidhi Deposit Scheme
- Minimum Deposit: ₹ 10,000
- Maximum Deposit: ₹ 1,50,000
- Interest Rate: 3% to 7.65%
- Tax Benefit: Available under Section 80C
- Eligibility Criteria: Individuals & HUFs with PAN
6. NRE Term Deposit scheme
- Interest Rate: 6% to 7.15%
- Tenure: 1 year to 10 years
- Tax Benefit: Exempt from Income Tax
- Eligibility Criteria: NRIs
7. NRO Term Deposit scheme
- Interest Rate: 3% to 7.15%
- Tenure: 7 days to 10 years
- Taxation: Income Tax deductible at source
- Eligibility Criteria: NRIs
8. FCNR ‘B’ deposit scheme
- Interest Rate: 3.15% to 5% (USD)
- Tenure: 1 year to 5 years
- Tax Benefit: Exempt from Income tax
- Eligibility Criteria: NRIs
9. RFC Term Deposit scheme
- Interest Rate: 3.35% to 5%(USD)
- Currency of Deposit: USD, GBP
- Tenure: 1 year to 3 years
- Tax Benefit: Exempt from Income tax
- Eligibility Criteria: Exempt till the person continues to be a resident but is not an ordinary resident of India.
10. BOI MACAD Deposit scheme
- Minimum Deposit: Monthly annuity of ₹1000
- Maximum Deposit: No limit
- Interest Rate: 3% to 7.15%
- Tenure: 3 years to 10 years
- Tax Benefit: TDS can get exempted if Form 15G/15H is submitted
- Eligibility Criteria: Individuals (Minors with guardian’s name)
How to Invest in BOI Fixed Deposit?
Listed below are the steps to open a BOI FD account:
- Step 1: Navigate to the Internet banking login page of Bank of India and log in using your Internet banking username and password.
- Step 2: Click on the “Fixed Deposit” tab.
- Step 3: Fill up all the relevant details in the application form.
- Step 4: Verify those details. Make sure to provide the savings account number from which your FD amount will be debited.
- Step 5: Post confirmation, select the tenure and the investment amount.
- Step 6: A confirmation will be displayed on your screen.
Additionally, you can also open a BOI FD account offline by visiting your nearest Bank of India branch and filling up the application form.
Documents Required to Open BOI FD
Here are the documents required for opening a Bank of India FD account:
- Proof of identity: Passport, driving license, voter ID card, Aadhaar card, etc.
- Proof of Address: Aadhaar card, Passport, bank account statement with a cancelled cheque, or voter ID card.
- DOB proof: Birth certificate, PAN card, Aadhaar card, Voter’s ID card, etc.
Eligibility to Open BOI FD
The following types of individuals and entities are eligible to open a fixed deposit account with Bank of India:
- Resident of India with a Bank of India savings account
- Two or more individuals for joint accounts
- Minors
- Blind individuals
- Companies, Associations, Clubs and Societies
- Sole Proprietorship, Partnership Firms
- Trusts, Religious Institutions
- Illiterate persons
- Municipalities
- Panchayats
- Government and quasi-government bodies
- Educational and Charitable institutions
Taxation on BOI FD
- Interest earned by an individual from a BOI fixed deposit is taxable under the head “Income from other sources”. You will have to pay taxes on the interest as per your applicable tax slab rate.
- Tax Deducted at Source (TDS) is levied by the bank if the interest amount exceeds ₹40,000 in a financial year; for senior citizens, the exemption limit is ₹50,000.
- If you invest in Bank of India’s tax-saver “Star Sunidhi Deposit scheme”, you can avail a tax deduction of ₹1,50,000 p.a. under Section 80C of the IT Act. However, this scheme has a lock-in period of 5 years.
Loan Against Bank of India FD Scheme
If you have urgent cash requirements and are looking for credit options other than personal loans, you can easily avail a loan against your BOI fixed deposit. However, there are certain key points to note.
- These loans are available only in non-repatriable INR.
- You can get this loan to utilise it for personal or business purposes and strictly not for the purpose of re-lending the same, investment in real estate business or any other speculative purpose.
- The payout for this type of loan also takes place in the NRO account of the borrower in INR.
Final Word
Bank of India FD rates are some of the highest bank FD rates in the country right now, especially for senior and super citizen depositors. An FD could be a great investment option for their assured returns, especially for risk-averse investors. However, consider your financial goals, liquidity requirements and risk tolerance before finalising any investment decision.
FAQs
The minimum amount required for investment in a domestic BOI FD account is ₹1 lakh. However, the rate of interest depends on the tenure of the investment among other factors.
Yes, non-resident Indians (NRIs) are also eligible to open a fixed deposit account with BOI. In fact, BOI has designed fixed deposit/term deposit schemes separately for NRIs which include NRE, FCNR “B”, RFC, and NRO.
For deposits less than ₹5 lakh, there is no penalty applicable for premature withdrawal if the amount is withdrawn on or after 1 year. However, there is a 0.5% penalty applicable if the amount is withdrawn before 1 year. If the deposit amount is more than 5 lakh, the penalty is 1%.
You can get a tax benefit by investing in the Tax Saver FD scheme offered by BOI. Star Sunidhi Deposit Scheme is the term deposit scheme which allows you to claim tax exemption of up to ₹1.5 lakh under Section 80C of the IT Act.
The highest rate of interest offered by the Bank of India on NRO Term deposit accounts is 6.25%. However, the deposit amount must be more than ₹2 crore (up to ₹10 crore) and tenure should be more than 1 year but less than 2 years. If you fulfil these conditions, you can avail the highest interest rate.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
