Many people prefer fixed deposits (FDs) because they offer stable returns with very low risk.
If you are also looking for a safe investment option, then there is useful news for you.
A government bank in India is currently offering attractive interest rates on FD schemes.
One of these banks is Bank of India, which is among the 12 public sector banks in the country controlled by the central government.
The bank has updated its FD interest rates after the Reserve Bank of India reduced the repo rate by 1.
25 percent last year.
The revised rates have been applicable since December 1, 2025.
Below is a simple explanation of how this FD scheme works and how much return you can get.
Bank of India FD Interest Rates
Customers can open an FD account with Bank of India for a minimum period of 7 days and a maximum tenure of 10 years.
The bank currently offers interest rates ranging from 3.00 percent to 7.35 percent depending on the tenure and the type of customer.
The highest interest is available under the Star Swarnim Special FD Scheme, which comes with a tenure of 450 days.
General citizens: 6.70% interest
Senior citizens: 7.20% interest
Very senior citizens: 7.35% interest
For FD schemes with a tenure of more than 3 years and less than 5 years, the bank offers:
6.25% interest for general customers
6.75% interest for senior citizens
These rates make the scheme attractive for investors looking for fixed and predictable returns.
How Much Will You Earn on ₹2 Lakh FD?
If a general customer invests ₹2 lakh in a fixed deposit with Bank of India for 59 months (less than 5 years), the bank offers an interest rate of 6.25 percent.
At maturity, the total amount will become ₹2,71,302.
This includes a fixed interest income of ₹71,302.
On the other hand, senior citizens receive a slightly higher interest rate of 6.75 percent.
If a senior citizen deposits ₹2 lakh for the same 59-month period, the maturity amount will reach ₹2,77,945.
In this case, the total interest earned will be ₹77,945.
Why Many Investors Prefer FD Schemes
Fixed deposits remain a popular investment choice because they provide guaranteed returns and low risk.
Government banks like Bank of India are especially trusted by investors who want stable earnings without market fluctuations.
However, investors should always compare interest rates and tenures before choosing an FD scheme that best suits their financial goals.
