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Bank of India FD – Interest Rates, Features, Types of FDs and FAQs

bank of india fd rates

Introduction

Bank of India fixed deposits offer decent interest rates to its investors. They have a flexible tenure, lower minimum deposit, loan against FD, nomination facility, and auto-renewal facility. Bank of India FD rates is higher than their savings bank account rates. Also, one needs to have a Bank of India savings account to invest in their FD. Furthermore, to invest in Bank of India FD, one can visit their nearest branch. Alternatively, they can also invest online on Bank of India’s website.

Bank of India FD interest rates 2020

The following table shows Bank of India FD rates for regular and senior citizens for different tenures.

TenureFixed Deposit Interest RatesSenior Citizen Fixed Deposit Interest Rates
7 days to 14 days3.25%3.75%
15 days to 30 days3.25%3.75%
31 days to 45 days3.25%3.75%
46 days to 90 days4.25%4.75%
91 days to 120 days4.25%4.75%
121 days to 179 days4.25%4.75%
180 days to 364 days4.75%5.25%
1 year to 1 year 364 days5.25%5.75%
2 years to 2 years 364 days5.30%5.80%
3 years to 4 years 364 days5.30%5.80%
5 years to 10 years5.30%5.80%

Note: Bank of India revises Fixed Deposits rate periodically 

Bank of India FD rates is higher than their savings bank account rates. The interest on BOI Fixed Deposit is paid half-yearly, on 1st October and 1st April. In case these days fall on holidays, then the interest is paid on the next working day. Investment in Bank of India FD is not eligible for tax saving under Section 80C of the Income Tax Act. Also, only investment in tax saving FDs qualify for tax exemption. Investors can claim the same while filing their income tax returns.

The interest earned on FDs is taxable as per the investor’s income slab rates.  Furthermore, TDS of 10% is cut if the interest income exceeds INR 40,000 per annum (INR 50,000 for senior citizens). If the investors don’t provide PAN details, then the TDS rate will be 20%.

Key Features of Bank of India Fixed Deposit

BOI Fixed Deposit accounts are suitable for investors looking at higher returns than a bank saving account. Also, the Bank of India FD schemes offers guaranteed income at a fixed interest rate.

Following are the key features of Bank of India Fixed deposit account:
  • Tenure: The tenure ranges between seven days to ten years
  • Minimum Deposit Amount: The minimum amount to open an FD with Bank of India is INR 10,000.
  • Maximum Amount: No limit
  • Bank of India FD Interest Rate: Bank of India FD offers interest rates in the range of 3.25% p.a to 5.30% p.a.
  • Preferential Interest Rates: Bank of India offers preferential interest rates to senior citizen depositors. The FD rates range between 3.75% p.a to 5.80% p.a.
  • Safety: Deposits up to INR 5,00,000 are covered under the Deposit Insurance Scheme of RBI.
  • Loan against FD: Bank of India also offers loans against FD to help depositors meet their liquidity requirements. 
  • Premature Withdrawal: Bank of India allows depositors to withdraw their deposit amount prematurely. However, premature withdrawals come with a penalty.
  • Nomination Facility: Bank of India allows depositors to nominate beneficiaries for the deposits.
  • Auto-Renewal: Bank of India provides the auto-renewal facility of the FD account.
  • Convenience: Depositors can open Bank of India FD investment online at their convenience. Also, they can fill the online application form to start their FD investments. Upon submitting the form, the bank’s representative will contact the depositor for further processing.

Types of Fixed Deposit Schemes offered by Bank of India

Following are the types of Bank of India fixed deposit schemes:

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

Types of Fixed Deposit Schemes: In Detail

Double Benefit Term Deposit

  • 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.
  • Minimum deposit amount is INR 10,000 (in Urban and Metro branches) and INR 5,000 (in rural and semi-urban branches).
  • The following persons or institutions can open the deposit account:
    • Individual
    • 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

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 allows also 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 following persons or organisations can open the account:
    • Individual
    • 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
  • 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.

What is the tenure range for Bank of India Fixed Deposit?

The tenure range for Bank of India FD is seven days to 10 years. Following is the tenure breakdown:

Tenure
7 days to 14 days
15 days to 30 days
31 days to 45 days
46 days to 90 days
91 days to 120 days
121 days to 179 days
180 days to 364 days
1 year to 1 year 364 days
2 years to 2 years 364 days
3 years to 4 years 364 days
5 years to 10 years

Who is eligible for opening a fixed deposit account in Bank of India?

Following is the eligibility criteria for opening 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)

What are the documents required to open a Fixed Deposit account in Bank of India?

One can invest in BOI Fixed Deposit through offline and also online mode. Following are the documents required to open a fixed deposit account:

  • 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. 

What is the current interest rate on fixed deposit schemes in the Bank of India?

Following are the current Bank of India fixed deposits rates for regular citizens:

  • For a tenure of 7-45 days, it is 3.25%
  • A tenure of 46-179 days it is 4.25%
  • For 180-364 days of tenure, it is 4.75%
  • Tenure of 1 year to 1 year 364 days it is 5.25%
  • Any FD with a tenure of 2-10 years is 5.30%

Following are the current Bank of India fixed deposits rates for senior citizens:

  • For a tenure of 7-45 days, it is 3.75%
  • A tenure of 46-179 days it is 4.75%
  • For 180-364 days of tenure, it is 5.25%
  • Tenure of 1 year to 1 year 364 days it is 5.75%
  • Any FD with a tenure of 2-10 years is 5.80%

To calculate the wealth accumulated from an FD investment, one can use a fixed deposit calculator. Scripbox’s fixed deposit calculator is free to use. Also, it is available online. Alternatively one can also use Bank of India FD Calculator to calculate the same.

Does Bank of India offer Recurring Deposits?

Yes, Bank of India offers recurring deposits to its depositors. Also, the recurring deposits have a minimum tenure of 180 days and a maximum tenure of 10 years. Depositors can open an RD account with Bank of India either by going to the bank branch or online using net banking. Following are the Bank of India RD interest rates for different tenures.

TenureGeneral RatesSenior Citizen Rates
180 days to 269 days6.25%6.75%
270 days to 364 days6.25%6.75%
1 year to 1 year 364 days6.65%7.15%
2 years to 2 years 364 days6.70%7.20%
3 years to 4 years 364 days6.50%7.00%
5 years to 7 years 364 days6.50%7.00%
8 years to 10 years6.35%6.85%

Note: Bank of India revises RD interest rates periodically 

Is PAN mandatory to open a Bank of India FD account?

A PAN card isn’t mandatory to open a Bank of India FD account. But it is mandatory to have a Bank of India savings account. Even if PAN isn’t mandatory, there are a few implications for the same.

  • As per the regulations of section 206AA, TDS rate will be 20% instead of the regular 10%
  • Also, the bank will not issue any certificate for TDS
  • All exemption certificates, including Form 15G/H, will be invalid.

Can I open an FD account without holding a bank account with Bank of India?

No, one cannot invest in Bank of India FD without having a bank account. To invest in Bank of India FD, the individual needs to submit the following documents:

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

Can I take a loan against a fixed deposit?

Bank of India offers loans against fixed deposit up to 90% against the deposit amount. The interest rate on loan is 5%-7.7%.  Also, Bank of India will give a bank loan against Bank of India FD only, and the tenure of the bank loan is limited to the tenure of the FD.

Loans such as loan against property (home loan), an education loan, business loan, etc., can be taken against an FD. Furthermore, one can always calculate their loan EMI using the loan EMI calculator. Also, the loan EMI calculator works as a personal loan EMI calculator, a home loan calculator and car loan calculator. The investor can also use this EMI calculator in multiple scenarios by changing the personal loan interest rate, home loan interest rate and car loan interest rate.

What are the tax implications of fixed deposits?

Investment in Bank of India tax-saving FDs qualifies for tax exemption under Section 80C of the Income Tax Act. Investors can claim the same while filing their income tax returns. Furthermore, investment in any Bank of India FDs doesn’t qualify for tax saving. Also, the interest on Bank of India FDs is taxable as per the individual’s income tax slab rates. Moreover, there is a TDS of 10% for interest income above INR 40,000 (INR 50,000 for senior citizens) per annum. In case the investor doesn’t provide the PAN card, then the TDS rate is 20%. To know whether the interest income one might earn is above or below the TDS threshold limit, one can use multiple bank FD calculators available online. One can use the Income Tax Calculator to estimate their tax liability. Scripbox’s Income Tax Calculator is free to use. Also, it is available online.

Frequently Asked Questions

What is the highest Bank of India FD rate?

The highest FD rate for Bank of India is 5.30% for a regular investor for the tenure of 5-10 years. Also, for the same tenure, the senior citizen FD rate is 5.80%. Furthermore, returns from Bank of India FD schemes can be calculated using Bank of India FD calculators.

What is the minimum amount that I have to give for opening a Fixed Deposit with the Bank of India?

The minimum amount required to open an FD with Bank of India is INR 1,0000. However, there is no limit on the maximum investment amount.

Can I deposit an additional amount in my Fixed Deposit account?

No, it is not possible to deposit any additional amount in an existing Bank of India fixed deposit. However, one can always invest in another FD with an additional amount.

How can I change the tenure of my existing fixed deposit account with Bank of India?

Once invested, one cannot change the tenure of the FD investment. However, one can opt for premature withdrawal or take a loan against the FD. However, one can close the existing Bank of India FD and start a new FD with the desired tenure.

Is the penalty changed for early withdrawal?

Yes, the Bank of India charges a penalty for premature withdrawal. For all deposits of INR 5 lakh and below, if the investment is withdrawn before completion of 12 months, then the penalty is 0.5%. If the withdrawal happens after 12 years, then there is no penalty.
However, if the investment amount is above INR 5 lakhs, then the penalty is 0.5% before and after completion of 12 months.

Published on November 3, 2020