Bank of India has increased interest rates on fixed deposits (FDs), giving good news to its customers.
Most banks had reduced FD interest rates after the Reserve Bank of India cut the repo rate by a total of 125 basis points from February 2025.
However, Bank of India has taken a different step by increasing rates on selected medium and long-term deposits.
The revised FD interest rates are applicable on deposits below ₹3 crore. These new rates have become effective from May 18, 2026.
New FD Interest Rates
| FD Tenure | Ordinary Citizens | Senior Citizens (60–80 years) | Super Senior Citizens (80+ years) |
|---|---|---|---|
| 1 year to less than 2 years | 6.50% | 7.00% | 7.15% |
| 2 years to less than 3 years | 6.60% | 7.10% | 7.25% |
| 3 year FD | 6.70% | 7.45% | 7.60% |
What This Means for Customers
Customers looking to invest in fixed deposits may benefit from these higher interest rates, especially senior and super senior citizens who are getting better returns.
The move also makes Bank of India one of the few banks to increase FD rates at a time when many banks are lowering them after the RBI’s repo rate cut.
