Bank of India (BOI) has recently updated its fixed deposit (FD) interest rates and discontinued its special 400-day FD scheme.
These changes came into effect on 15 April 2025. BOI, a public sector bank, has reduced interest rates on several of its FD schemes, impacting deposits under Rs 3 crore.
Closure of 400-Day Special FD Scheme
The bank previously offered a special 400-day FD scheme that provided an attractive interest rate of 7.30%. However, this scheme has now been closed.
Reduced Interest Rates on FD
BOI has reduced interest rates on several FD schemes, effective for deposits of amounts less than Rs 3 crore:
91 to 179 days FD: The interest rate has dropped from 4.50% to 4.25%.
180 days to less than 1 year FD: The interest rate has decreased from 6.00% to 5.75%.
1-year FD: The interest rate has been reduced from 7.00% to 6.80%.
More than 1 year but less than 2 years FD: The interest rate has fallen from 6.80% to 6.75%.
Benefits for Senior Citizens
Bank of India offers additional benefits for senior citizens:
Senior citizens (60 years and above): An extra 0.50% interest.
Super senior citizens (80 years and above): An extra 0.65% interest. These benefits apply to FDs with a maturity period of 6 months or more.
Penalty for Premature FD Closure
For premature FD closure, BOI has outlined the following penalties:
FDs below Rs 5 lakh: No penalty if broken after 1 year. A penalty of 0.50% will apply if broken before 1 year.
FDs Rs 5 lakh or more: A penalty of 1% will apply for premature closure.
If the FD is broken and reinvested for a long period, no penalty will be charged. Additionally, there will be no penalty in case of the depositor’s death.
