Bank of India FD Rates 2021

• Domestic deposits below Rs. 2 crore

The above mentioned interest rates are updates as on 1st October  2020.
*Minimum Deposit Rs.1 Lakh
#Additional premium of 25 bps, over and above the existing 50 bps will be paid to Senior Citizen’s on their retail TD (Less than Rs. 2 Cr) for ‘5 Years and above’ tenor only i.e. 75bps.

• FD Rates for Domestic Bulk Deposits (Rs. 2 crore but less than Rs. 10 crore)

The above mentioned interest rates are updates as on 1st September 2020.

• FD Rates for Tax Saving Deposits

• For domestic deposits maturing in 7 days to 45 days, Bank of India FD rates are set at 3.25% currently
• Rates are 4.25% for deposits maturing in 46 – 179 days whereas for tenure of 180 days to less than 1 year, it is 4.75% per annum
• Investors with FD of 1 year to less than 2 years can earn 5.25% of Bank of India fixed deposit interest rates which is the maximum rate provided by bank currently
• For rest of the tenure ranging from 2 – 10 years, FD rates are fixed at 5.30% for now
• Senior citizens earn extra 0.5% of Bank of India FD interest rates (applicable for deposits of min. 6 months validity)

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For Non-Resident Indians (NRIs), the Bank of India provides 4 different types of fixed deposit schemes providing guaranteed returns. These are:

• NRO (Non-Resident Ordinary) FD Account
• NRE (Non-Resident External) FD Account
• FCNR (Foreign Currency Non-Repatriable) FD Account
• RFC (Resident Foreign Currency) FD Account

Bank of India FD interest Rates for NRIs

• Bank of India NRE (Non-Resident External) Fixed Deposit Interest Rates

NRE or Non-Resident External Fixed Deposit is for Non-Resident Indians who wish to park their foreign savings in the bank. Interest earned is not taxable in India and is fully repatriable. Deposits are converted to INR at the prevailing exchange rates.

The above mentioned interest rates are with effect from 1st October 2020 for deposits less than Rs. 2 crore and 1st September 2020 for bulk deposits.

• NRO FD Rates

NRO or Non-Resident Ordinary Fixed Deposit is designed to provide NRIs with FD option where they can keep their Indian earnings/savings and earn assured returns on the same. Interest earned on such FD is taxable in India. The account is maintained in INR (converted from foreign currency of deposit to INR). (Principal can be repatriated for up to USD 1 Million as per the updated FEMA 2000 guidelines). Withdrawals can only be made in INR.

The above-mentioned interest rates are updated as of 1st October 2020.

*Additional premium of 25 bps, over and above the existing 50 bps will be paid to Senior Citizen’s on their retail TD (Less than Rs. 2 Cr) for ‘5 Years and above’ tenor only i.e. 75bps.

• FCNR Fixed Deposit Interest Rates

FCNR or Foreign Currency Non-Resident Fixed Deposit Account is for NRIs to keep their foreign savings safe while earning assured returns on it. Also, unlike NRE deposits, FCNR deposits are maintained in foreign currency and thus are not exposed to forex risks. Interest earned is not taxable in India and is fully & freely repatriable.

• RFC FD Interest Rates

RFC of Resident Foreign Currency FD Scheme is for residents or Returning Indians who have foreign savings and do not wish to get it converted. They can keep the money if RFC FD without conversion while earning guaranteed interest. This keeps the money safe from forex related risks. Interest earned is taxable in India.

The above-mentioned interest rates are updated as of 1st April 2021. All figures are in %.

Read more about Bank of India NRI FD schemes

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Features:

• The minimum deposit requirement stands at Rs. 10,000 in the metro and urban branches of BOI and at Rs. 5,000 in the bank’s rural and semi-urban branches. However, senior citizens can book an FD under the scheme with a minimum of Rs. 5,000. There is no limitation on the amount of maximum deposit
• Deposits can be booked for a short term equalling to 7 days and more to as long as 10 years
• Interest is compounded on a quarterly basis and paid on maturity as per the applicable card rates (at the time of booking)
• Bulk deposits are also available which amount from Rs. 2 crore to less than Rs. 10 crore
• Deposits of and above Rs. 10 crore can be also be booked but related information about the same is available at the branch itself

Benefits:

• Investors can opt for premature withdrawal on paying a nominal penalty as and when required
• Deductions of up to Rs. 1.5 lakh as per the Section 80C of the IT Act 1961, can be claimed against the tax-saving FD which comes with a lock-in period of 5 years
• If the monthly payout is opted, interest shall be paid at discounted rates otherwise actual rates shall apply

The bank offers the following types of fixed deposit schemes for its domestic customer base:

1. Double Benefit Term Deposit Scheme
2. Fixed/Short Term Deposit Scheme
3. Short Term Deposit Scheme
4. Quarterly/Monthly Term Deposit Scheme

Know more about Bank of India FD Schemes

For those of you looking for exponential returns on fixed deposits, Bank of India’ Double Benefit Term Deposit will not disappoint. You will earn compound interest which will be paid to you along with the initial deposit on maturity. This will help you reach your goal without having to bear any market-related risks. For higher returns, it is advised not to withdraw funds prematurely, unless really required.  (Min. deposit of Rs. 10,000; Rs. 5,000 for senior citizens)

For senior citizens, housemakers and anyone who is looking for monthly or quarterly income from their savings, you should check the Bank of India Monthly/Quarterly Deposit Scheme. You will get regular interest directly in your linked account which you can use as your daily spends.

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Bank of India FD calculator is designed to help investors in making better decisions regarding how much to invest in FD as well as for how long. The calculator is available at Paisabazaar free of cost. The FD calculator gives an estimate of the maturity amount one shall get on investing their money in the bank’s fixed deposit at a said tenure and the prevailing Bank of India FD interest rates.

Suggested Read : How to Use BOI FD Calculator

The bank provides the facility of premature withdrawal to FD customers at nominal or no penal charges. The following important aspects must be considered while exercising the facility:

• Deposits less than Rs. 5 lakh do not fetch any penalty if withdrawn post-completion of 12 months from the date of booking
  • 0.5% penalty charged if deposits are withdrawn before completion of 12 months from the date of booking
• 1% penalty levied on premature withdrawal of deposits of and above Rs. 5 lakh

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Credit cards against FD are a good alternative to premature withdrawal of fixed deposits. This is because such credit cards are issued against FD and they add to your immediate purchasing power without compromising your FD returns.

Although Bank of India currently does not offer a credit card against FD, you can resort to Paisabazaar Step Up Credit Card which is offered in partnership with the SBM Bank (India) Ltd.

To get this credit card, you need to open a fixed deposit account (of minimum Rs. 12,000) with SBM Bank (India) Ltd. and then you will be offered the Paisabazaar Step Up Card. This card shall help you in building/improving your credit score along with adding to your immediate purchasing power.

The Bank of India, like all other banks, exercises TDS or Tax Deducted at Source before crediting the accrued interest. The following points throw more light on how the tax is deducted at source, as per the rules set under the Income Tax Act, 1961:

• Interest income amounting to more than Rs. 40,000 fetches tax deduction at 10%
• This limit is set at Rs. 50,000 for senior citizens
• Tax is deducted at 20% if PAN is not quoted at the time of booking FD
• For those having an annual income of less than Rs. 2.5 lakh do not need to pay tax
  • They need to submit Form 15G (or Form 15H for senior citizens) informing the bank about non-deduction of tax on their FD interest
• Interest earned in NRE FD is taxable @ 30%
• Interest is not taxable for Resident but Non-Ordinary Resident or R-NOR (this is the transitional state of becoming resident from NRI)

Eligibility Criteria

• Individual (sole or joint account)
• Hindu Undivided Family
• Partnership/Company/Association or any other Institution

Documents Required to Apply

Applicants need to submit the following listed documents to successfully apply:

• Properly filled & signed application form
• Photo ID proof (e.g. PAN card, Driving License, Voter’s ID Card, etc.)
• Residence proof (e.g. Aadhaar Card, Voter’s ID card, Passport, utility bills, etc.)
• Photograph(s) of all depositors
• PAN Card
• Form 15G/15H, if applicable

Note: This is an indicative list.

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Q. What is the minimum/maximum tenure of the BOI Double Benefit Term Deposit Scheme?

A. The minimum tenure of BOI Double Benefit Term Deposit scheme is 6 months/10 years.

Q. Is premature withdrawal facility available for BOI fixed deposit?

A. Yes, premature withdrawal facility is available for BOI fixed deposit scheme.

Q. Do NRI have to pay tax on fixed deposits?

A. On interest earned on NRO term deposits, TDS is charged at a rate of 30%.

Q. How to save tax on FDs?

A. Investors can claim deductions of up to Rs. 1.5 lakh/financial year by investing in fixed deposits for a minimum period of 5 years. In such FDs, premature withdrawal is not allowed and neither is the facility of loan against deposit available.