Bank of India (BOI) RD Interest Rates 2024

The Bank of India offers recurring deposits with tenure varying from three months to ten years. Depending on the tenure, the Bank of India’s RD interest rate might range from 3% to 7.25% p.a. A deposit can be opened for as little as Rs. 100 every month for periods in multiples of 3 years. Recurring deposits are one of the most effective strategies to save a small amount of your money each month without burdening yourself. Bank of India’s recurring deposit interest rates can help you gain a significant return on your investments, allowing you to reach your financial goals. Customers of the Bank of India have the option to open recurring deposits in the names of illiterates, blind people, two or more people (joint accounts), minors (under parental supervision), and individuals.

Bank of India RD Interest Rates 2024

Tenure	Rate of Interest for General Citizens (Below 60 Years of Age)	Rate of Interest for Senior Citizens (Above 60 Years of Age)
91 days to 179 days	4.5%	5.00%
180 days to 269 days	5%	5.50%
270 days to less than 1 year	5.5%	6%
1 year	6%	6.50%
Above 1 year to 399 Days	6%	6.50%
400 days (Monsoon Deposit)	7.25%	7.75%
401 days to less than 2 years	6%	6.50%
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 & above to 10 years	6.00%	6.75%

Features of Bank of India (BOI) Recurring Deposit

1. Initial Investment: The minimum deposit needed to open an RD account with the Bank of India is ₹500 (in urban and metro branches).

2. Limit: The maximum monthly installment amount has no upper limit.

3. Tenure: The term can be as short as six months (and then in increments of three months) or as long as ten years.

4. TDS Deduction: Yes, under the Income Tax Act of 1961, the interest generated on the RD account is taxable. If the total predicted interest exceeds ₹1,000 in a fiscal year, TDS is deducted, i.e. 10% if the PAN information is given and 20% if PAN details are not given.

5. Set-Up Standing Instructions: Paying the monthly payments (for RD) is as simple as with a one-time standing instruction from your Bank of India Savings Account.

How to Open an RD Account in the Bank of India (BOI)?

I. Offline Process to Open an RD Account in Bank of India

Collect all of the documentation required for opening a Bank of India RD account and go to a local bank to request the intimation procedure. Throughout the application process, you will be assisted by a Bank of India representative. It is advised that you bring photocopies of your documentation with you.

II. Online Process to Open an RD Account in Bank of India

1. By Net Banking

• Go to the official website of the Bank of India.
• Hover over the ‘Login’ button at the top of the page. Select ‘Login’ from Internet Banking’s ‘Personal’ section.
• Select “Create Recurring Deposit.”
• Complete the form with the depositor’s and nominee’s details, if suitable.
• Once confirmed, the deposit amount will be deducted from the customer’s savings account, and a receipt will be emailed (for those who have registered for e-statement) or sent to the customer via post.

2. By Mobile Banking

• Open Bank of India Mobile, the bank’s mobile application.
• Click on the ‘Open RD’ button.
• Upon confirmation, the chosen amount will be deducted from the associated savings account and an RD account will be opened promptly.

If you have opted for an e-statement, you will receive a confirmation email; otherwise, a physical statement will be sent to you.

How to Calculate RD Interest Rates in Bank of India?

The RD interest rates on Bank of India recurring deposits are compounded quarterly. This is the formula to calculate the maturity value.

I = Interest Earned

P = Monthly Installment Amount

n = Number of Installments (tenure in months)

r = Rate of Interest per annum

Eligibility Criteria to Start an RD Account with Bank of India

1. The person applying must be an Indian resident or a member of a HUF (Hindu Undivided Family).

2. NRIs can open an RD account using their NRO or NRE accounts.

3. A minor can open a Bank of India RD account under parental guardianship to look after your funds.

Documents Required for Starting an RD Account

For Opening an RD in the 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

Types of Bank of India RD Accounts

1. Recurring Deposits

A recurring deposit account allows investors to set aside a certain amount each month for a certain period of time. Interest on deposits earned into this type of account is compounded on a quarterly basis. In addition, longer tenures may result in higher interest rates, according to banking regulations.

Investment Amount	Minimum Deposit: ₹500/month urban and metro branches Maximum Deposit: No upper limit
Tenure	6 months to 10 years
Nomination	Available
Penalty for Late Deposits	Banks impose penalties of INR 1.50 for every INR 100 in deposits made for less than five years, and INR 2 for every INR 100 in deposits made for more than five years, if the installment is not paid beyond the calendar date.
Premature Closure	Available but with a penalty as per the banking norms.

2. Star Flexi Recurring Deposits

Star Flexi is a unique type of recurrent deposit plan that gives customers the option to choose monthly Flexi installments in multiples of the core installment in addition to choosing core installments. Upon creating an account, the fixed rate for the basic installment is determined. However, the rate that is in effect at the time of deposit will apply to the flexible installments.

Investment Amount	Minimum Deposit: ₹500/month urban and metro branches Maximum Deposit: No upper limit
Tenure	12 months – 120 months (in multiples of 3 months)
Nomination	Available
Penalty for Late Deposits	Banks impose penalties of INR 1.50 for every INR 100 in deposits made for less than five years, and INR 2 for every INR 100 in deposits made for more than five years, if the installment is not paid beyond the calendar date.
Premature Closure	Available but with a penalty as per the banking norms.
Flexi Installment	Any amount in multiples of the core installments every month opted for at account opening. Also, the maximum Flexi installment can be any multiple of the core monthly payment.

RD Premature Withdrawal Rules

The principal amount will be refunded to the source and interest will not be paid by the bank if the account is closed within the first three months of opening. If the deposit amount is withdrawn before it matures, the bank will charge a penalty in accordance with standard procedures, and the interest that has accumulated will be reduced for the most recent quarter. Partial withdrawals of deposits are not permitted.

Frequently Asked Questions (FAQs)

1. Is it possible to open a minor’s account for recurrent deposits?

Answer:

It is possible to create a BOI RD account for a minor on their behalf.

2. Is an RD account able to be renewed?

Answer:

Yes, it is possible to renew your BOI RD account. Nonetheless, renewal is permitted in accordance with BOI guidelines.

3. What is the Late Payment Penalty?

Answer:

If the monthly payment is not received by the due date, Bank of India levies penalties. For deposits made shorter than five years, the bank charges ₹1.50 for every ₹100 per month, and ₹2 for every ₹100 per month.

4. What is a Recurring Deposit (RD)?

Answer:

RD is a savings option where you deposit a fixed amount every month for a predetermined period, and you earn interest on the cumulative deposit.

5. Is there a provision for a nominee in RD accounts?

Answer:

Yes, you can usually nominate a person to receive the RD amount in case of your demise. Nomination details can be updated at the time of account opening or later.