Bank of India hikes interest rates on fixed deposits (FDs), now get up to 6.75%

3 min read . Updated: 16 Dec 2022, 02:33 PM IST Vipul Das

On deposits maturing in 444 days to less than 3 Years, BOI is now promising a maximum interest rate of 6.75%.

The public sector lender Bank of India (BOI) hikes interest rates on fixed deposits of less than ₹2 Cr.

BOI FD Rates

The bank is giving a 3.00% interest rate on deposits maturing in the next 7 to 45 days, and BOI is offering a 4.50% interest rate on deposits maturing in the next 46 to 179 days. The Bank of India promises an interest rate of 5.00% on fixed deposits (FDs) maturing in 180 to 269 days and 5.50% on those maturing in 270 to less than one year. Deposits maturing in 1 year to less than 2 years (except 444 days) will now fetch an interest rate of 6.00% and those maturing in 444 days and 2 years to less than 3 years will fetch a maximum interest rate of 6.75%. On deposits maturing in 3 years to less than 5 years, the bank is offering an interest rate of 6.50% and on those maturing in 5 years to 10 years, BOI is offering an interest rate of 6.00%.

BOI has mentioned on its website that “Special deposit buckets 555 days and 777 days stand discontinued. Additional premium of 25 bps, over & above the existing 50 bps will be paid to Senior Citizen’s on their retail TD (Less than Rs. 2 Cr) for all the tenors above '3 Years' i.e. 75bps."

Senior citizens will get an additional interest rate benefit of 50 bps higher than the standard rates on deposits maturing in 7 days to less than 3 years. Whereas, on FDs maturing from above 3 years, they will get an additional interest rate benefit of 75 bps. Implying that, on deposits maturing in 3 years to less than 5 years, senior citizens will now get an interest rate of 7.25% which would be the highest rate applicable for them across tenors.

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On behalf of senior citizens, Bank of India has also mentioned on its website that “The period of deposit should be for 6 months & above , for availing benefit of additional rate applicable to Senior Citizens / Staff/Ex-Staff Senior Citizen. 0.50% p.a. additional rate of interest over and above card rates for General Public for minimum deposits of Rs.5000/-(in case of Term Deposits) & Rs.100/- (in case of Normal RD account & Rs.1000/- for Flexi RD Accounts) up to Rs.2 Crore for term deposits of 6 Months & Above to 10 years. However for deposits of 3 yrs & above, the additional ROI should be given at 0.75% over & above normal ROI. Similarly, 1.50% p.a. additional rate of interest over and above card rates (for Staff/Ex-Staff Senior Citizens, Spouse in case of deceased Staff/Ex-Staff) on their deposits below Rs.2 Crore (i.e.1% Staff Rate + 0.50% Senior Citizen Rate of Interest) for term deposits of 6 Months & Above to 10 years."

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).