In a move reflecting the evolving monetary landscape, Bank of India (BoI) has announced significant revisions to its Fixed Deposit (FD) interest rates, effective April 15, 2025. The bank has also withdrawn its special 400-day FD scheme, which previously offered an attractive interest rate of 7.30%.
1. BoI has reduced FD rates by up to 25 basis points for short- and medium-term deposits under ₹3 crore.
2. The withdrawn 400-day FD scheme had offered a 7.30% interest rate.
3. Revised interest rates include:
- Deposits maturing between 91–179 days: 4.25% (reduced from 4.50%)
- Tenures from 180 days to less than one year: 5.75% (down from 6.00%)
- One-year fixed deposits: 6.80% (from 7.00%)
- Deposits above one year and up to less than two years: 6.75% (slight reduction from 6.80%).
4. Senior citizens and super senior citizens continue to receive additional interest of 0.50% and 0.65%, respectively, on deposits of six months and above.
5. No penalty for premature withdrawal on deposits below ₹5 lakh after 12 months.
Despite these reductions, the bank maintains its focus on customer flexibility and continues its preferential schemes for senior citizens. The revisions are closely aligned with the Reserve Bank of India's recent 25 bps repo rate cut, underscoring the bank's effort to adapt to broader monetary policies.
Sources: Economic Times, Business Standard, Financial Express.