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FD Rates: BOI has altered the interest on fixed deposits (FDs) and, simultaneously, the bank has also removed its Special 400 Day FD scheme. These adjustments have come into effect starting April 15, 2025. It also means that Bank of India has reduced the interest rates on some of its FDs. Bank of India is included in the count of public sector banks of the country.
Discontinued Special 400-Day FD Scheme
The special 400-day scheme initiated by the bank was earning a good interest of 7.30% but now the scheme has been discontinued.
Interest Rates on FDs lowered
The bank has reduced interest rates on many FD schemes(Applicable for deposits below Rs 3 crore)
FDs from 91 days to 179 days will now offer 4.25% interest, a change from the previous 4.50%.
FDs clawed from 180 days to less than a year are now at 5.75%, which was 6.00% earlier.
For FDs of 1 year, the interest is now 6.80%, down from 7.00%.
For FDs of more than 1 year and less than 2 years, the current rate is 6.75%, 6.80% previously.
Senior citizens will benefit more
The increase in interest for senior citizens flooding over the age of 60 will receive will be 0.50%.
Those above the age of 80 years will receive an additional 0.65% in interest.
These benefits will be applicable to Fixed Deposits (FDs) of 6 months or greater.
Penalty for breaking FD before time
If an FD of less than Rs 5 Lakh is broken after one year, there will be no penalty applied.
If this FD is broken before one year, a penalty of 0.50% will be applied.
For premature FD withdrawal of Rs 5 lakh or more, a 1% penalty will be charged.
However, if the FD is broken and re-deposited for long-term, no penalty will be incurred. And in the event of the depositor's demise, no penalty will be incurred for breaking the FD. Such changes from Bank of India may force planning rethink for FD holders.
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