Bank of India offers recurring deposits for a tenure ranging between 3 months and 10 years. Bank of India RD interest rate 2024 varies depending on the tenure and can be between 3% and 7.25% p.a. One can start a deposit with an amount as low as Rs. 100 per month for periods in multiples of 3 years.
Here is a glance at its key details:
| Minimum Investment | Rs. 500 in urban and metro areas and Rs. 100 in semi-urban or rural areas |
| Tenure | 3 months to 10 years |
| Interest Rate for General Citizen | 3% to 7.25% p.a. |
| Interest Rate for Senior Citizens | 3% to 7.75% p.a. for senior citizens and 3% to 7.90% p.a. for super senior citizens |
| Loan against BoI RD | Available for Star Flexi Recurring Deposit |
| TDS on RD | Applicable |
Learn more about the features and benefits of this RD in this blog.
Bank of India RD Interest Rates 2024 (Below Rs. 2 crore)
Bank of India RD rate of interest 2024 varies between 3% and 7.25% p.a. for deposits below Rs. 2 crore for general depositors. Your chosen deposit tenure also has a role to play in determining the interest rate. The following table lays down the details:
| Deposit Tenure | General Citizen (% p.a.) |
| 7 to 14 days | 3.00 |
| 15 to 30 days | 3.00 |
| 31 to 45 days | 3.00 |
| 46 to 90 days | 4.50 |
| 91 to 179 days | 4.50 |
| 180 to 210 days | 5.50 |
| 211 to 269 days | 5.50 |
| 270 days to less than 1 year | 5.75 |
| 1 year | 6.50 |
| More than 1 year but less than 2 years | 6.50 |
| 2 years | 7.25 |
| More than 2 years but less than 3 years | 6.75 |
| 3 years to 5 years | 6.50 |
| 5 years to 8 years | 6.00 |
| 8 years to 10 years | 6.00 |
*The interest rate is subject to change at the bank’s discretion.
Bank of India RD Interest Rates 2024 for Senior Citizens
Senior citizens get to avail a 0.5% higher BOI RD interest rate on deposits with tenures above 6 months over the regular card rates. For deposits of 3+ years, they can avail an additional 0.75% interest. Let’s check the interest rate for senior and super senior citizens.
| Deposit Tenure | Senior Citizen (% p.a.) | Super Senior Citizen (% p.a.) |
| 7 to 14 days | 3.00 | 3.00 |
| 15 to 30 days | 3.00 | 3.00 |
| 31 to 45 days | 3.00 | 3.00 |
| 46 to 90 days | 4.50 | 4.50 |
| 91 to 179 days | 4.50 | 4.50 |
| 180 to 210 days | 6.00 | 6.15 |
| 211 to 269 days | 6.00 | 6.15 |
| 270 days to less than 1 year | 6.25 | 6.40 |
| 1 year | 7.00 | 7.15 |
| More than 1 year but less than 2 years | 7.00 | 7.15 |
| 2 years | 7.75 | 7.90 |
| More than 2 years but less than 3 years | 7.25 | 7.40 |
| 3 years to 5 years | 7.25 | 7.40 |
| 5 years to 8 years | 6.75 | 6.90 |
| 8 years to 10 years | 6.75 | 6.90 |
Bank of India Recurring Deposit Interest Rates Features
Bank of India RD comes with some exclusive features. Take a look at them below:
- Recurring deposit interest is compounded quarterly.
- The minimum and maximum period of deposit are 3 months and 10 years, respectively.
- You can start investing with a minimum of Rs. 100/month if residing in a semi-urban or rural area, and Rs. 500/month, if residing in an urban or metro area.
- For bulk deposits of Rs. 10 crore and above, you have to contact the branch to get approval.
- You must pay the monthly instalment on or before the last working day of the month.
- Failing to pay deposits within the prescribed time will result in a penalty of Rs. 1.50 for each Rs. 100 if the deposit term is 5 years or less, and Rs. 2 for deposits of over 5 years.
- In case of advance payment, the penalty payable may be waived by the bank for an equal number of instalments.
- The nomination facility is available for spouses or any other family member.
- Senior citizens earn 0.50% extra interest on the general interest rate.
- Staff and ex-staff who are senior citizens can get up to 1.5% additional interest rate on Bank of India recurring deposits.
How to Open an RD Account in Bank of India Online?
Here are the steps to open an RD account in the Bank of India:
- Step 1: Go to the Bank of India website.
- Step 2: Enter your User ID, net banking password, and CAPTCHA and submit.
- Step 3: On the home page, click on ‘Term Deposit Request’ under the Requests tab.
- Step 4: Click on ‘Open Term Deposit’.
- Step 5: Choose ‘Quarterly Interest Compounded’ for the nature of the Deposit.
- Step 6: Fill up the form with the required details such as term deposit type, deposit period, maturity instruction, credit account, etc.
- Step 7: Confirm your choices by providing your user ID and transaction password.
Your Bank of India RD account is successfully opened and you can start depositing.
How to Open an RD Account in Bank of India Offline?
Here are the steps to open an RD account in the Bank of India offline:
- Step 1: Go to the nearest Bank of India branch.
- Step 2: Collect an RD application form and fill it with the required details such as name, age, address, deposit amount, etc. Don’t forget to mention the nominee and standing instructions, if you want.
- Step 3: Submit the duly filled documents with photos, ID proof, address proof, PAN, etc.
- Step 4: Provide standing instructions in your savings account to deduct money for deposits.
- Step 5: After successful verification, your RD account will be ready to use.
How to Calculate RD Interest Rates for Bank of India?
Bank of India’s RD interest rate is compounded quarterly. If you are looking to manually calculate the maturity amount, here are the details:
Formula
Here is the formula used:
A= P x (1 + r/n) ^ (nt)
Here, A is the maturity amount.
P is the deposit instalment amount.
r is the applicable rate of interest.
n is the frequency for interest compounding.
t is the deposit tenure.
Example
Let’s understand how the formula works with the help of an example.
Suppose you want to open a BoI RD account for 5 years and your monthly instalment will be Rs. 1,000. The applicable interest rate is 7% p.a. Using the above formula, your total amount will be:
Hence, A= P x (1+R/N) ^ (Nt) = 1000 x (1 + 7/4) ^ (4×5) = Rs. 71,933
The applicable interest amount will be, A – P = Rs. (71,933 – 60,000) = Rs. 11,933
Bank of India RD Account Eligibility Criteria
If you belong to either of these options in the given list, you are eligible to open an RD account with BoI:
- HUF
- Individuals
- Joint account by two individuals
- Specially abled individuals
- Minor individuals, if the account is operated by legal guardians
Documents Required for Bank of India RD Account
While opening a Bank of India RD account, you need to submit certain documents for KYC verification. Here are the documents:
Proof of Identity
- Passport
- Ration card
- PAN card
- Voter ID card
- Government ID
- Driving licence
- Senior Citizen ID card (if applicable)
Proof of Address
- Telephone bill
- Electricity/ utility bill
- Bank statement
- Certificate/ID card (if issued)
- Passport
Types of Bank of India RD Accounts
Bank of India offers the following types of recurring deposit accounts:
1. Recurring Deposit
Here are the features:
- Tenure can vary between 3 months and 10 years.
- The minimum deposit amount is Rs. 500 for urban and metro areas and Rs. 100 for semi-urban and rural areas.
- No cap on the maximum deposit amount is applicable.
- Premature withdrawal, nomination and TDS are applicable.
- Penalty of Rs. 1.50 for each Rs. 100 is applicable for deposits of 5 years and less. For deposits of over 5 years, a penalty of Rs. 2 is applicable for missed due payment each month.
2. Star Flexi Recurring Deposit
It is a unique offering by BoI with greater flexibility. Customers can choose core instalments as well as monthly flexi instalments in multiples of core instalments.
- The core instalment comes with a fixed rate whereas the flexible instalment attracts the rate of interest applicable at the time of deposit.
- The tenure of this RD varies between 1 year and 10 years.
- The minimum core instalment is Rs. 500 for this deposit.
- No limit on the monthly instalment amount is applicable.
- Flexi instalment amount can be in any multiples of the core monthly instalment.
Bank of India RD Premature Withdrawal Rules
- If you decide to withdraw your RD after the first year of account opening, no premature withdrawal fees will be levied if the deposit is less than Rs. 5 lakh.
- For deposits below Rs. 5 lakh, if you decide to withdraw before a year, a penalty of 0.5% will be charged. For deposits of Rs. 5 lakh or above, a 1% penalty is charged.
- No premature withdrawal penalty is applicable to the bank’s staff, ex-staff and spouse of deceased staff. If a depositor dies, no penalty is applicable for premature withdrawal.
Bank of India RD Penalty
You need to pay your monthly instalment by the last working day of that particular month. If you fail to do the same, BoI will levy a penalty of Rs. 1.50 for every Rs. 100 for deposits not older than 5 years and Rs. 2 for deposits older than 5 years.
How to Close Bank of India RD Account Offline?
If you are looking to close your recurring deposit account with the Bank of India, you can follow the given steps:
- Step 1: Visit the nearest Bank of India branch.
- Step 2: Collect an RD closure form.
- Step 3: Fill up the form precisely, sign it, and submit it to the branch manager or officer-in-charge. In the case of a joint account, all account holders need to sign it.
- Step 4: Attach copies of self-attested KYC documents.
- Step 5: Submit all the documents with the RD certificate or RD receipt.
- Step 6: The bank will issue a cheque or DD. You can also make cash withdrawals.
TDS on Bank of India RD
Bank of India RD does not come under the provision of TDS. However, interest earned on the RD is taxable as per an individual’s income tax slab.
If you have submitted your PAN details to the bank, 10% TDS will be applicable in case the interest exceeds Rs. 40,000 for general citizens and Rs. 50,000 for senior citizens. 20% TDS is applicable if the depositor has not furnished his/her PAN.
Final Word
Bank of India’s RD interest rate 2024 can go up to 6.75% p.a. for general citizens and 7.95% p.a. for senior citizens, which is compounded quarterly. Hence, this can be a great investment opportunity for you if you are looking for a guaranteed source of investment and hefty returns.
FAQs
Yes, a 10-year-old can open a Bank of India RD account with the presence of a legal guardian.
Yes, TDS is applicable on BoI RDs as per the Finance Act, 2015.
You can use an RD calculator available online to know the amount receivable at the time of RD maturity.
BoI RD receives compound interest on a quarterly basis.
