Bank of India’s Bold Move: Higher Interest Rates for Fixed Deposits

The Bank of India, a prominent public sector bank in India, has recently revised its fixed deposit interest rates across various tenures. This change is significant for both regular and senior citizen customers.

1. Revised Interest Rates for Deposits Below Rs 2 Crore:
   • The revised interest rates for deposits under Rs 2 crore range from 3% to 7.25%.
   • These rates apply to tenures varying from 7 days to 10 years.
   • For senior citizens, the interest rates are slightly higher, ranging between 3.5% and 7.75%.
   • These new rates came into effect on October 1, 2023​​.
2. Shubh Arambh Deposits:
   • The Bank of India has also increased interest rates on a special term deposit scheme known as “Shubh Arambh Deposits”.
   • This increase is specifically for deposits under Rs 2 crore.
   • Additionally, the bank is offering an extra 0.15% interest to super senior citizens (aged 80 and above).
   • The new rates for this scheme have been applicable since April 1, 2023​​.
3. Rates for Fixed Deposits with a One-Year Maturity:
   • The interest rates for fixed deposits with a one-year maturity period have been increased.
   • These rates are effective from December 1, 2023.
   • For a 1-year tenure, the interest rate has been raised to 7% for retail customers with accounts having less than Rs 2 crores in deposits. This change was effective from May 26, 2023​​​​.
4. Rates for Deposits from ₹ 2 Crore to Less Than ₹ 10 Crore:
   • The Bank of India also announced a rate increase for its customers with deposits ranging from ₹ 2 crore to less than ₹ 10 crore.
   • This change affects fixed deposits with a maturity of 46 days up to a year.
   • These revised rates became effective on December 1, 2023​​.

This update in the fixed deposit interest rates by the Bank of India reflects the dynamic nature of the banking sector and the bank’s commitment to providing competitive returns to its depositors. It’s an important development for both individual and institutional investors looking to park their funds in fixed deposits.