On September 7, 1906 a group of eminent businessmen from Mumbai with a paid-up capital of ₹50 lakhs and 50 employees founded the Bank of India. The Bank was under private ownership and control till July 1969 when it was nationalised along with 13 other Banks. Today it has over 5100+ branches in India across all states and Union Territories including specialised branches.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 14 days||3%||3.5%|
|15 days to 30 days||3%||3.5%|
|31 days to 45 days||3%||3.5%|
|46 days to 90 days||4.5%||5%|
|91 days to 179 days||4.5%||5%|
|180 days to 269 days||5%||5.5%|
|270 days to less than 1 year||5.5%||6%|
|Above 1 Year to less than 2 Years||6%||6.5%|
|2 Years to less than 3 Years||6.75%||7.25%|
|Note: All interest rates are updated as of 1st Aug 2023|
Fixed Deposits are a secured investment instrument in which a lump sum amount is deposited for a fixed tenure at a predetermined rate of interest. The interest rate offered under fixed deposits is higher than in saving bank accounts. Let's know more about the types of FD Bank of India offers:
Star Monthly Income Fixed Deposit
Minimum investment amount is ₹10,000 in metro and urban branches and ₹5,000 in rural and ₹5,000 in semi-urban branches for senior citizens. The maximum tenure for deposit under this scheme is 10 years. Payment of interest can be done monthly or quarterly. Monthly interest payments will be done at a discounted rate.
Star Quarterly Income Fixed Deposit
Under this scheme, the minimum investment amount is ₹10,000 in metro and urban branches and ₹5,000 in rural and ₹5,000 in semi-urban branches for senior citizens. Payment of interest is on a monthly or quarterly basis, as desired by the depositor. Depositors may receive interest every month at a monthly discounted value. The maximum tenure for deposit under this scheme is 10 years.
Star Double Benefit Term Deposit
This scheme is useful if the investment period is between 6 months to 10 years. The minimum investment amount is ₹10,000 in metro and urban branches and ₹5,000 in rural and ₹5,000 in semi-urban branches for senior citizens. It provides a higher yield on principal as the interest is compounded on a quarterly basis. The accrued interest, compounded quarterly, is paid on maturity along with the principal amount. However, depositors may request premature withdrawal of deposits. Repayment of term deposits before maturity is permissible in terms of the directives of the Reserve Bank of India issued from time to time.
Star Sunidhi Tax Saving Deposit Scheme
Only individuals and HUFs having PAN are eligible to deposit in this scheme. The depositor is entitled to claim tax benefits of up to ₹1.5 lakhs in a given financial year, under section 80C of the Income Tax Act of 1961. The minimum amount of deposit in this scheme is ₹10,000 and the maximum amount acceptable under this scheme is ₹1.5 lakhs per annum. The minimum duration of the deposit is 5 years and the maximum is 10 years. Since there is a lock-in period of 5 years, premature withdrawal is not permissible. However, in case of the death of the depositor premature withdrawal is permissible even during lock-in the period. The depositor cannot avail loan against the amount of the deposit. In the case of a joint account, only the first holder is entitled to a tax benefit. Senior citizens will get 0.5% extra interest on deposits.
Fixed/Short Term Deposit
Under this scheme, the deposits are repayable within 6 months. In case the terminal month is incomplete interest will be paid for the actual number of days on the basis of 365 days in a year. The depositor is required to open a savings bank account where the interest from the fixed deposit will be credited. Premature withdrawal of deposit is permissible with applicable penalty.
It is a deposit product which combines current and short deposit accounts. It has facilities of sweep in and sweep out to take care of withdrawals.
Know Your Customer (KYC) norms are mandatory for bank fixed deposits. The following documents are required to comply with KYC norms.
For a depositor who is an existing account holder of the bank (having Savings or current account) fixed deposit can be opened using the following procedure:
By Logging into the Internet Banking
Step 1: Visit the Bank of India website, and navigate to the “Personal Login” tab. Provide username and password to log in.
Step2: Go to the “Fixed Deposit Tab”
Step 3: Enter all the details.
Step 4: Verify details and click confirm.
Step 5: Confirmation message will be displayed on the screen.
By using a Mobile App
Step 1: Download the Bank of India Mobile App and log in using your credentials.
Step 2: Select the 'Open FD' option from the app's main menu.
Step 3: Choose the type of deposit account you want to open, based on your preferences and requirements.
Step 4: Provide all the necessary details, including your personal information, nominee details, and payment and maturity instructions.
Step 5: After you have verified all the details, click on the 'Confirm' button to complete the transaction.
Step 6: Once the transaction is successfully completed, you should receive a confirmation message on the screen, indicating that your FD account has been opened.
Step 1: Visit the nearest branch office of Bank of India.
Step 2: Ask for a Fixed Deposit Application Form and fill in all the details.
Step 3: Submit all the documentary proofs.
Step 4: Deposit the money.
Step 5: Collect the Fixed Deposit Receipt.
As per the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
At the time of filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
The right time to invest in bank FDs depends on various factors such as the current interest rate scenario, the investor's financial goals, and the prevailing economic conditions. Typically, when interest rates are high, it may be a good time to invest in bank FDs as they offer higher returns.
If an incorrect PAN is furnished by the depositor, it may lead to tax implications. In this case, the bank would deduct TDS (Tax Deducted at Source) at the rate of 20%.
Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover is applicable on Bank of India FD
There are no charges at the time of opening/maturity of fixed deposit. However, there is a penalty in the case of premature withdrawal. Moreover, the bank may deduct TDS at the rate of 10% if the amount of interest exceeds ₹40,000 (₹50,000 incase of senior citizens).
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.