Bank of India revised its fixed deposit interest rates on November 2, offering higher returns across select maturities. The lender also started a new Star Akshay scheme for 500 days. General customers get 6.85% interest, while super senior citizens earn up to 7.50%. These changes benefit many depositors seeking better savings.
Bank of India (BoI) has revised its fixed deposit (FD) interest rates, offering higher returns to investors across select maturities. The public sector lender has increased interest rates on deposits with tenures ranging from 1 to 3 years and introduced a new special fixed deposit scheme called Star Akshay.
The revised interest rates came into effect on November 2, following the Reserve Bank of India's (RBI) repo rate hike. The latest revision is expected to benefit depositors looking to lock in their savings at higher interest rates.
The bank has also announced different interest rates for general customers, senior citizens and super senior citizens under its new special deposit scheme.
Star Akshay FD scheme offers up to 7.50% interest
Under the newly launched Star Akshay Fixed Deposit scheme, customers can invest their money for a fixed tenure of 500 days.
The bank is offering an annual interest rate of 6.85% to general customers under this scheme. Senior citizens will receive an interest rate of 7.35%, while super senior citizens can earn up to 7.50% per annum.
The scheme provides an opportunity for depositors to earn higher returns over a relatively short investment period. However, investors should check the applicable terms and conditions before booking their deposits.
New FD interest rates on deposits below ₹3 crore
Bank of India has also revised the interest rates on retail fixed deposits with maturities of less than ₹3 crore across select maturities.
Under the revised rate structure, deposits with a one-year tenure will earn interest at 6.60% per annum. For deposits with maturities of more than 1 year but less than 3 years, the bank offers an interest rate of 6.70% per annum.
The revised rates also include additional benefits for senior and super senior citizens.
Senior citizens will receive an additional 0.50 percentage point over the standard rates on eligible tenures. Super senior citizens will receive an additional 0.65 percentage point above the applicable standard interest rate.
These additional benefits allow older depositors to earn comparatively higher returns on their fixed deposit investments.
Bulk FD rates revised for deposits up to ₹10 crore
Apart from retail deposits, Bank of India has also increased interest rates on bulk fixed deposits ranging from ₹3 crore to ₹10 crore.
For bulk deposits with a one-year maturity, the bank is offering an interest rate of 6.55% per annum. Deposits with tenures of one to three years will earn 6.65% per annum.
The revised rates provide higher returns to investors placing large sums with the public sector lender.
Higher rates on non-callable fixed deposits
Bank of India is also offering an additional 0.15 percentage points on non-callable fixed deposits with tenures ranging from one year to three years.
Non-callable FDs generally do not allow depositors to withdraw their money before maturity. In contrast, callable fixed deposits provide the flexibility of premature withdrawal, subject to applicable conditions and interest penalties.
While non-callable deposits may offer higher interest rates, investors should consider their liquidity requirements before opting for them.