FD Rate Update: Bank of India (BOI) has revised its fixed deposit (FD) interest rates and discontinued its special 400-day FD scheme.
These changes are effective from April 15, 2025. BOI is one of India’s major public sector banks and has reduced rates on several FD options.
400-Day Special FD Scheme Discontinued
The bank had launched a special 400-day FD scheme offering a high interest rate of 7.30%. This scheme has now been withdrawn.
Reduced Interest Rates on FDs
BOI has lowered interest rates on multiple fixed deposit options (for amounts below Rs 3 crore):
FDs for 91 to 179 days will now earn 4.25% interest, down from 4.50%.
FDs for 180 days to less than 1 year will get 5.75% interest, earlier it was 6.00%.
The interest on 1-year FDs has been reduced from 7.00% to 6.80%.
FDs of more than 1 year but less than 2 years will now earn 6.75%, down from 6.80%.
Extra Benefits for Senior Citizens
Citizens aged 60 and above (senior citizens) will get an extra 0.50% interest.
Those aged 80 and above (super senior citizens) will receive 0.65% more interest.
These additional benefits apply to FDs with a term of 6 months or more.
FD Pre-Closure Penalties
No penalty if an FD under Rs 5 lakh is broken after 1 year.
A penalty of 0.50% applies if such an FD is closed before completing 1 year.
For FDs of Rs 5 lakh or more, a 1% penalty will be charged if closed early.
However, there is no penalty if the amount is reinvested in a long-term FD or if the FD is closed due to the depositor’s death.
Due to these changes by Bank of India, FD investors may need to reconsider their savings and investment plans.
