Bank of India hikes FD interest rates on deposits below Rs 3 crore
New Delhi, May 18
Bank of India on Monday announced an increase in interest rates on medium- and long-term fixed deposits of less than Rs 3 crore, effective today.
According to the state-owned lender, the revised interest rate for fixed deposits with tenures ranging from one year to less than two years has been increased to 6.50 per cent per annum.
For deposits with maturities between two years and less than three years, the interest rate has been revised to 6.60 per cent, while three-year fixed deposits will now offer 6.70 per cent annually, the bank said.
Senior citizens and super senior citizens will continue to receive additional interest benefits over and above the applicable rates, the public sector lender added.
Senior citizens will get an additional 0.50 per cent interest, while super senior citizens will receive an extra 0.65 per cent on deposits with maturities ranging from six months to less than three years.
For fixed deposits with maturities of three years and above, senior citizens and super senior citizens will be eligible for an additional interest of 0.75 per cent and 0.90 per cent, respectively.
The bank also said non-callable fixed deposits above Rs 1 crore with a minimum tenure of one year will attract an additional 0.15 per cent interest per annum.
However, loan against fixed deposits and premature withdrawal facilities will be available only for callable deposits.
Customers can open fixed deposits through any Bank of India branch as well as via the BOI Omni Neo mobile application and internet banking platform, the lender said.
Shares of Bank of India were trading lower at Rs 137.90 on the BSE on Monday. The banking stock has touched a 52-week high of Rs 178.45 and a 52-week low of Rs 109 on the exchange.
— IANS
Reader Comments
As a salaried employee, I'm always looking for safe investment options. This hike is decent but let's be honest - with inflation at 5-6%, the real return is negligible. Still, for risk-averse investors like my retired father, this is a reliable option. The 0.15% extra for non-callable deposits above 1 crore seems too small to lock in your money.
Govt banks waking up to competition! Private banks have been offering similar rates for months. But what I appreciate is the clarity on premature withdrawal and loan against deposits. Many people don't understand these terms and get stuck later. Good move by Bank of India.
I wish they would also focus on simplifying the digital process. The BOI Omni Neo app can be glitchy sometimes. But overall, it's nice to see PSU banks taking steps to attract deposits. My grandmother will be happy about the senior citizen benefits. 🎉
A respectful observation: while the rate hike is welcome, the share price dropping to Rs 137 shows the market isn't fully convinced about the bank's performance. Hope this move helps improve their deposit base and financial health. For small savers like me, every bit counts.
Good to see PSU banks competing! But 6.50% for 1-2 years is still less than what some small finance banks offer (7-8%). However, safety matters more for many. The senior citizen extra rates are thoughtful. My parents are considering shifting their savings here.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.