Bank of India hikes FD rates up to 6.70% on deposits below ₹3 crore
Synopsis
Bank of India has quietly raised FD rates on deposits below ₹3 crore, effective 18 May, with three-year deposits now earning 6.70% — and super senior citizens pocketing up to 0.90% extra on longer tenures. As public sector banks compete for retail deposits, this revision signals BOI's push to retain and attract savers ahead of potential rate-cycle shifts.
Key Takeaways
Bank of India revised FD rates on deposits below ₹3 crore , effective 18 May 2025 .
Rates now range from 6.50% p.a. (1–2 year tenure) to 6.70% p.a. (3-year tenure).
Senior citizens earn an additional 0.50%–0.75% ; super senior citizens earn an extra 0.65%–0.90% depending on tenure.
Non-callable FDs above ₹1 crore with at least one year tenure attract an additional 0.15% p.a.
Premature withdrawal and loan-against-FD are available only on callable deposits .
BOI shares traded at ₹137.90 on BSE Monday, against a 52-week high of ₹178.45 .
Bank of India on Monday, 18 May revised upward its interest rates on medium- and long-term fixed deposits below ₹3 crore, with the new rates effective immediately. The state-owned lender has raised returns across tenures ranging from one year to three years, offering depositors a marginally better yield in a competitive retail banking environment.
Revised FD Rates at a Glance
Under the updated rate card, fixed deposits with tenures from one year to less than two years will now earn 6.50% per annum. Deposits maturing between two years and less than three years will fetch 6.60% per annum, while three-year fixed deposits will offer the highest revised rate of 6.70% per annum. The bank has not disclosed changes to shorter-tenure deposit rates in this revision.
Additional Benefits for Senior and Super Senior Citizens
Senior citizens will continue to receive an additional 0.50% interest over the applicable base rate, while super senior citizens will earn an extra 0.65% — both applicable on deposits with maturities from six months to less than three years. For fixed deposits of three years and above, senior citizens are eligible for an additional 0.75%, and super senior citizens for 0.90%, the bank confirmed.
Non-Callable Deposits and Withdrawal Rules
Non-callable fixed deposits above ₹1 crore with a minimum tenure of one year will attract an additional 0.15% per annum. Notably, loan-against-FD and premature withdrawal facilities will be available exclusively on callable deposits, a distinction depositors should factor in when choosing their deposit type.
How to Open a Fixed Deposit with Bank of India
Customers can open fixed deposits through any Bank of India branch or digitally via the BOI Omni Neo mobile application and the bank's internet banking platform. This comes amid growing competition among public sector banks to attract retail deposits, particularly as the Reserve Bank of India's rate cycle remains a key variable for future FD pricing.
Shares of Bank of India were trading lower at ₹137.90 on the BSE on Monday. The stock has touched a 52-week high of ₹178.45 and a 52-week low of ₹109 on the exchange. Whether this rate revision helps shore up deposit mobilisation will be closely watched in the coming quarters.
Point of View
Not transformative — but its timing matters. With the RBI's rate trajectory under scrutiny and public sector banks facing deposit mobilisation pressure, BOI's move to nudge medium- and long-term FD rates upward is a defensive play to retain retail depositors. The premium for super senior citizens at 0.90% on three-year-plus deposits is notably competitive and could attract a segment that private banks often underserve. The broader question is whether this signals a wider PSB trend of deposit-rate recalibration ahead of any RBI pivot — or whether it is simply catch-up with peers who moved earlier.
NationPress
13 Aug 2026
Frequently Asked Questions
What are the new FD interest rates announced by Bank of India?
Bank of India has revised its fixed deposit rates to 6.50% p.a. for tenures of one year to less than two years, 6.60% p.a. for two to less than three years, and 6.70% p.a. for three-year deposits. These rates apply to deposits below ₹3 crore and are effective from 18 May 2025.
How much additional interest do senior citizens get on Bank of India FDs?
Senior citizens receive an additional 0.50% on deposits maturing between six months and less than three years, and an extra 0.75% on deposits of three years and above. Super senior citizens get 0.65% and 0.90% respectively on the same tenure bands.
What is a non-callable fixed deposit at Bank of India?
A non-callable fixed deposit is one that cannot be withdrawn prematurely. Bank of India offers an additional 0.15% per annum on non-callable FDs above ₹1 crore with a minimum tenure of one year. Loan-against-FD and premature withdrawal are available only on callable deposits.
How can customers open a fixed deposit with Bank of India?
Customers can open a fixed deposit at any Bank of India branch or through digital channels — the BOI Omni Neo mobile application or the bank's internet banking platform.
How are Bank of India shares performing?
Bank of India shares were trading at ₹137.90 on the BSE on Monday, 18 May. The stock has a 52-week high of ₹178.45 and a 52-week low of ₹109.
