Bank of India Fixed Deposit

Bank of India offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on Bank of India FDs is higher in their savings account. One can invest in Bank of India FDs through both online and offline modes with a minimum investment of INR 10,000. This article covers Bank of India FD, its features and interest rates in detail.

Bank of India Fixed deposit schemes

Following are the types of Bank of India FD schemes:

• Double Benefit Term Deposit
• Fixed/Short Term Deposit Scheme
• Bank of India Monthly/Quarterly Deposit Scheme

Bank of India Double Benefit Term Deposit

A double benefit deposit scheme provides a higher yield on the principal at the end of the period. Also, the interest in this scheme is compounded quarterly.

• The principal and the accrued interest are paid only at the end of the period. In other words, no monthly or half-yearly payments are made.
• The scheme accepts deposits for a period ranging between six months to 120 months. Moreover, the doubt benefit deposit scheme is useful for short term and medium-term investing, where the duration ranges from 12 months to 120 months.
• The minimum deposit amount is INR 10,000 (in Urban and Metro branches) and INR 5,000 (in rural and semi-urban branches).

Bank of India Fixed/Short Term Deposit Scheme

The Bank of India fixed or short term deposit scheme is a non-cumulative deposit option. Also, the scheme pays interest half-yearly. This scheme is also suitable for those who do not have a regular income or for the ones who want to add to their existing income.

• The scheme has offers deposits for the following tenures:
  • Short term tenure: Seven days
  • Fixed-term tenure: 1 year to 10 years
• The minimum deposit amount for a short term deposit is INR 1,000 and for the fixed-term deposit is INR 10,000.
• The scheme also allows premature withdrawals without any penalty if withdrawn after 12 months. For withdrawals before 12 months, 1% and 0.5% on deposits above INR 5 lakh and below INR 5 lakh, respectively.

Bank of India Monthly/Quarterly Deposit Scheme

Money invested in Quarterly or Monthly Income certificate deposits provides a fixed monthly income. Also, the depositor gets interest only for a specified period keeping the deposit amount intact.

• The monthly or quarterly interest is credited to the current or savings account. Moreover, the depositor can opt for crediting the interest amount into the recurring deposit account.
• The scheme also allows premature withdrawal after completing 12 months. If withdrawn before, 1% penalty on deposits of/above INR 5 lakh and 0.5% penalty on deposits less than INR 5 lakh is imposed.
• Interest earned is subject to Tax Deducted at Source.

Key Features of Bank of India Fixed Deposit Schemes

• Tenure: The tenure of a Bank of India FD ranges from seven days to ten years. Also, one cannot change the tenure of their Bank of India FD once it has commenced.
• Minimum and maximum investment: The minimum investment in Bank of India FD is INR 10,000. However, there is no limit on the maximum amount of investment in Bank of India deposits.
• Bank of India FD rates: Bank of India FD rates range between 3.25% and 5.3% for regular citizens and between 3.75% and 5.8% for senior citizens. Moreover, the Bank of India offers an additional 0.5% interest to senior citizens on their FDs. Also, the Bank of India pays interest on a half-yearly basis on October 1^st and April 1^st every year to the investor.
• Premature withdrawal: All Bank of India FDs can be withdrawn prematurely, however with a penalty.
• Loan against FD: Bank of India offers loan against the FD. Investors can get up to 90% of the deposit amount as a loan against their Bank of India FD investment. Also, the loan’s interest rate will be in the range of 5% to 7.7%. Moreover, the tenure of the loan is limited to the tenure of the Bank of India FD.
• Nomination facility: Bank of India FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their Bank of India FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all Bank of India deposits. The scheme covers all Bank of India deposits up to INR 5,00,000.

How to open a Bank of India FD deposit account?

One can open a Bank of India FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open a Bank of India FD account through internet banking:

• Login to the Bank of India NetBanking account.
• Under the ‘Fixed Deposit’ tab, select the ‘Open FD’ option and choose the type of deposit account.
• Provide all the necessary details, nominee details, payment and maturity instructions.
• Verify the details and click on ‘Confirm’. The account opening confirmation message shall be displayed on the screen on successfully completing the transaction.

Through Mobile App

Bank of India App

The following steps will guide in opening an FD account through the Bank of India Mobile App:

• Download the Bank of India App and log in.
• Select the ‘Open FD’ option and choose the type of deposit account.
• Provide all the necessary details, nominee details, payment and maturity instructions.
• Verify the details and click on ‘Confirm’. The account opening confirmation message shall be displayed on the screen on successfully completing the transaction.

Offline Bank of India FD Opening

To open a Bank of India FD account offline, one has to visit the nearest Bank of India branch. Fill the Bank of India FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, the Bank of India will provide an FD receipt.

Documents required to open a Bank of India FD

Following are the documents required to open an FD account with the Bank of India:

• Fixed Deposit application form
• 2 Photographs
• Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
• Address proof as per KYC norms. (Aadhar card, Telephone bill, Electricity bill, Bank Statement with cheque)
• Identity Proof as per KYC norms. (Aadhar Card, PAN Card, Passport, Voter ID Card, Driving License)
• Senior Citizen ID Card (for senior citizens)
• Any other documents as applicable for proprietorship, company, HUF, partnership, association, trust or institution etc.

Eligibility to Open a Bank of India FD

Following are the eligibility criteria to open a Bank of India FD

• Individual – Single and Joint Accounts
• Sole Proprietary Concerns
• Partnership Firms
• Illiterate and blind persons
• Minors
• Limited Companies
• Trusts, Associations, Clubs, Societies, Charitable Institutions etc.
• Hindu Joint families (accounts of non-trading nature only)
• Municipalities and Panchayats
• Government and Quasi-Government Bodies
• Religious Institutions
• Educational Institutions (including Universities)

Does the Bank of India offer Recurring Deposits?

Bank of India offers recurring deposits to its depositors. Bank of India recurring deposits have a minimum tenure of six months. The maximum tenure of Bank of India RDs is ten years. Depositors can open an RD account either by going to the Bank of India branch or online using internet banking. The interest rate for regular citizens on Bank of India RDs is in the range of 6.25% to 6.7%, and for senior citizens, it is in the range of 6.75% to 7.2%.

Is FD interest taxable?

Investment in Bank of India FDs does not qualify for tax saving under Section 80C of the Income Tax Act. The interest income from the Bank of India FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from the Bank of India FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the Bank of India, then the TDS rate will be 20%.

How many years will FD double in BOI?

To know in how many years Bank of India FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate, and the result will be the number of years Bank of India FD will double. For example, for a tenure of 10 years, the FD interest rate is 5.3%. An investor can double the investment amount by investing for this tenure in Bank of India FD in 13.58 years (72/5.3).

Does Bank of India allow Premature withdrawals?

All Bank of India FDs can be withdrawn prematurely. The bank charges a penalty of 0.5% for withdrawal of deposits below INR 5 lakhs before the completion of 12 months. However, suppose the deposits below INR 5 lakhs are withdrawn after a tenure of 12 months. In that case, the Bank of India will not charge any penalty. Also, for all deposits above INR 5 lakhs, the bank charges a penalty of 0.5% for premature withdrawals before or after 12 months.

Who is eligible for opening an FD account in BOI?

Individuals can open single and joint FD accounts with BOI. Moreover, sole proprietary concerns, partnership firms and limited companies can open an FD account with the Bank of India. Also, trusts, associations, clubs, societies, charitable institutions and HUF can open an FD account with BOI. Furthermore, municipalities and panchayats, government and quasi-government bodies, religious institutions and educational institutions can invest in BOI FD. Illiterate, blind people and minors can also invest in BOI FD.

Frequently Asked Questions