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Bank of India (BOI) FD Interest Rates 2024

Last Updated : 16 Jan, 2024
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The Bank of India (BOI) is one of India’s oldest and most well-known nationalised banks. BOI’s headquarters are in Mumbai. It provides the necessary banking and financial services to both retail and corporate customers. The Bank of India is also a founding member of SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunications. SWIFT offers low-cost financial processing and communication services.

Bank of India provides its customers with a variety of FD options through which they can secure their investments and earn interest. Bank of India FD rates are often higher than savings account interest rates. Customers are permitted to deposit a specified amount while opening an account. Additional money deposits and withdrawals are not permitted during the current tenure.

Bank of India (BOI) FD Rates 2024 (Less than 2 Crore)

Tenure

Regular Interest Rate
(Below 60 Years of Age)

Senior Citizen Interest Rate
( Above 60 Years of Age)

7 days to 14 days

3.00% 3.00%

15 days to 30 days

3.00% 3.00%

31 days to 45 days

3.00% 3.00%

46 days to 90 days

4.50% 4.50%

91 days to 179 days (except 175 days)

4.50% 4.50%

175 days

4.50% 4.50%

180 days to 210 days

5.50% 6.00%

211 days to 269 days

5.50% 6.00%

270 days to less than 1 year

5.75% 6.25%

1 year

6.50% 7.00%

Above 1 year to less than 2 years

6.50% 7.00%

2 years

7.25% 7.75%

Above 2 years to less than 3 years

6.75% 7.25%
3 years to less than 5 years 6.50% 7.25%

5 years to less than 8 years

6.00% 6.75%

8 years to 10 years

6.00% 6.75%

Bank of India (BOI) FD Interest Rates (2 Crore to 10 crore)

Tenure

Regular Interest Rate

7 days to 14 days 4.50%
15 days to 30 days 4.50%
31 days to 45 days 4.50%
46 days to 90 days 5.25%
91 days to 179 days (except 175 days) 6.00%
175 days (New Bucket) 7.50%
180 days to 210 days 6.25%
211 days to 269 days 6.50%
270 days to less than 1 year 6.50%
1 Year 7.25%
Above 1 Year to less than 2 Years 6.75%
2 Years 6.50%
Above 2 Years to less than 3 Years 6.50%
3 Years to less than 5 Years 6.00%
5 Years to less than 8 Years 6.00%
8 years & above to 10 Years 6.00%

Benefits of Bank of India (BOI) Fixed Deposit

1. Tenure: It provides fixed deposits with a minimum tenure of 7 days and a maximum tenure of 10 years.

2. Minimum Investment: The minimum investment to open an FD with BOI is Rs.10,000 for metro and urban branches and Rs.5,000 for rural and semi-urban branches.

3. Rate of Interest: BOI FD interest rates range from 3.25% to 5.30%, with elderly people receiving an extra 0.50%. In the case of senior citizen deposits of 5 years or more, an extra interest rate of 0.25% is given in addition to the 0.50%.

4. Overdraft Facility: BOI also allows its investors to borrow against their FD. Investors can borrow up to 90% of the FD amount.

5. Nomination Facility: It allows depositors to add a nominee to their fixed deposit account.

Types of Bank of India (BOI) FD Schemes

1. Regular Fixed Deposit

Minimum Deposit Amount

  • ₹10,000 in metro and urban areas
  • ₹5,000 in rural and semi urban areas
  • ₹5,000 for senior citizens

Interest Payout

It will be paid half yearly.

Premature Closure

  • There is no penalty for withdrawing deposits of less than ₹5 lakh on or after 12 months.
  • Premature withdrawal of deposits less than ₹5 lakh before 12 months incurs a 0.50% penalty.
  • If deposits over ₹5 lakh are prematurely withdrawn, there will be a penalty of 1%.

2. Star Sunidhi Tax-Saving Deposit Scheme

The Star Sunidhi Tax-Saving Deposit amount can be used to claim an income tax deduction under Section 80C of the Income Tax Act of 1961. In the case of a joint account, only the first named depositor is entitled for the taxation benefit.

Tenure

5-10 years

Minimum Deposit Amount

₹10,000

Maximum Deposit Amount

₹1.5 lakh per financial year

Advance/Loan Facility

Not Available

Premature Withdrawal:

It is not allowed to withdraw prematurely before five years. In case the depositor passes away before the fixed deposit matures, the premature payment will be made to the chosen beneficiary or their legal heir.

3. Quarterly/Monthly Term Deposit

Money deposited in quarterly or monthly income certificate deposits gives a predictable monthly income. Furthermore, the depositor receives interest only for a set period of time while the deposit amount remains intact.

Tenure

10 years

Minimum Deposit Amount

  • ₹10,000 in metro and urban areas
  • ₹5,000 in rural and semi urban areas
  • ₹5,000 for senior citizens

Interest Payout

Interest must be paid on a monthly or quarterly basis. Monthly interest is paid at a reduced rate.

Premature Closure

  • There is no penalty for withdrawing deposits of less than ₹5 lakhs on or after 12 months.
  • Premature withdrawal of deposits less than ₹5 lakh before 12 months incurs a 0.50% penalty.
  • A 1% penalty is imposed on deposits of more than ₹5 lakh that are withdrawn prematurely.

4. Capital Gain Tax Saving Scheme

The Capital Gain Accounts Scheme, 1988, applies to taxpayers who desire to claim a capital gains exemption under Section 54 of the Income Tax Act, 1961.

Types of Accounts

  • Account ‘A’ (Savings Bank)
  • Account ‘B’ (Term Deposit cumulative/ non-cumulative)

Interest Exemption

Any interest earned under this scheme isn’t exempt under the Income Tax Act and will be taxed at the regular rates for term deposits.

Security

This account’s deposit cannot be offered or placed as security (for a guarantee or loan).

Premature Withdrawal

The term deposit can be withdrawn prematurely by changing it to a savings account.

Account Closure

A Form ‘G’ application must be submitted to the assessing officer (who supervises the depositor) in order to close the account. The nominee or legal heir will collect the premature payment if the depositor passes away before the fixed deposit maturity. however, they must submit an Application in Form “H” with the assessing officer’s consent.

How to Invest in Bank of India (BOI) FD?

There are several ways to create an Bank of India FD account, including offline, Internet Banking, and using a mobile app.

1. Internet Banking

To start an Bank of India FD account using internet banking, follow the procedures outlined below :

1. Login to your Bank of India NetBanking account.

2. Select the ‘e-TDA Opening’ option from the ‘Online Term Deposit’ menu.

3. Read and thoroughly review all of the ‘Terms & Conditions’ before proceeding to fill out all of the required information.

4. Using a one-time password (OTP), authenticate the transaction.

5. The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

2. Mobile App – Bank of India App

To create an FD account using the Bank of India Mobile App, follow the procedures outlined below :

1. Sign in to the Bank of India App after downloading it.

2. To proceed, select the Term Deposits option.

3. Fill out all of the information, including personal information, nominee information, and maturity instructions.

4. Using a one-time password (OTP), authenticate the transaction.

5. The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

3. Offline Bank of India FD Opening

To open an Bank of India FD account offline, go to your local Bank of India branch. Fill up the Bank of India FD application form and submit it together with all required papers and the deposit amount. When the application is properly processed, the Bank of India will provide an FD receipt.

Eligibility to Open a Bank of India (BOI) FD Account

When considering to invest in Bank of India FDs, investors have to fulfil the following criteria:

1. You must have an individual or joint FD account with the bank.

2. NRIs can only invest through NRE and NRO accounts.

3. Investor should be memeber of HUF which stands for Hindu undivided family.

4. Minors can invest in these FDs as well, but they must be accompanied by their parents or guardians.

5. For these sort of Investments ,Trusts, public and private limited companies, partnerships, and sole proprietorships are also eligible.

Documents Required to Open Bank of India (BOI) FD

For Opening an FD in Bank of India Investors must ensure that they have the following documents with them :

1. Proof of Identity

  • Pan card
  • Voter ID
  • Aadhaar card
  • Ration card including a photograph
  • Driving license
  • Senior citizen ID
  • Passport

2. Proof of Address

  • Electricity bill
  • Telephone bill
  • Bank statement with cheque
  • Passport
  • Identity card issued by Post Office

Customers also need to give their two passport-sized photographs at the time of opening the deposit account.

Tax on Bank of India Fixed Deposit

A Bank of India Tax Saving FD investment can result in annual tax savings of up to Rs. 1,50,000. Under Section 80C of the Income Tax Act, no other Bank of India FDs are eligible for tax savings.

It should be noted that the interest earned on a Bank of India Fixed Deposit is subject to income tax slab rates. Additionally, if Income from Bank of India FD above Rs. 40,000 per annum, the interest income is subject to a TDS of 10%.

The annual limit for senior citizens is Rs. 50,000. Additionally, the investor would be charged a 20% TDS rate if they neglect to give the bank their PAN Card data.

Loan Against Bank of India (BOI) FD

To meet urgent personal or business financial demands without compromising the FD. Depositors can borrow up to 90% of their FD as an overdraft facility at nominal interest rate with no processing fees and foreclosure charges.

Interest Rate

5-7% premium over the interest offered to the deposit.

Loan Amount (for online overdraft against FD)

₹10,000 to ₹10 Crore

Type of Loan Facility

Overdraft Facility upto 90 % of the FD amount.

Processing fees

Zero processing fees and prepayment penalties

Premature Closure of Bank of India (BOI) Fixed Deposit

  1. Premature withdrawal is permitted on all Bank of India Fixed Deposits.
  2. The BOI charges a 0.5% penalty for withdrawals of deposits less than ₹5 lakhs before the end of the 12-month period.
  3. Suppose the savings under INR 5 lakhs are withdrawn after 12 months then ,there will be no penalty in that situation.
  4. BOI charges a 0.5% penalty for premature withdrawals before or after 12 months on any deposits above ₹5 lakhs.

Frequently Asked Questions (FAQs)

1. Can both account holders get income tax benefits in the case of a joint account?

Answer:

In the event of a joint account, only the first account holder is entitled for income tax benefits under Section 80C of the Income Tax Act of 1961.

2. Can I receive a loan against my Star Sunidhi Tax-Saving Deposit Scheme?

Answer:

No, you cannot use the Star Sunidhi Tax-Saving Deposit Scheme certificate to obtain a loan or advance from the bank. The advance facility is not available until the account has completed the lock-in period.

3. What is the minimum and maximum tenure of the BOI Double Benefit Term Deposit Scheme?

Answer:

The BOI Double Benefit Term Deposit plan has a 6-month minimum and 10-year maximum tenure.

4. Is it possible to withdraw funds from a BOI fixed deposit prematurely?

Answer:

Yes, there is a premature withdrawal option under the BOI fixed deposit scheme.

5. What is the Bank of India’s highest interest rate?

Answer:

BOI currently offers the highest rate of interest of 7.25%. The Bank of India’s FD rates vary with tenure.

6. Can a consumer modify the tenure of an FD after it has been opened?

Answer:

It is not feasible to modify the term of an FD after it has been opened. Deposits, however, can be renewed once the maturity period ends. A customer must wait until the date of maturity to make modifications to the tenure.



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