Bank of India offers you a great way to grow your savings with their recurring deposit savings scheme. With the Bank of India RD interest rates ranging from 4.50% to 7.25% p.a. and flexible tenure ranging from 3 months to 10 years for deposits under ₹2 Crores, you can save to grow your wealth. Bank of India offers RD for senior citizens as well with interest rates that are 0.50% higher than the normal rates.
Bank of India offers a savings scheme with an investment as low as ₹500 in metro and urban cities and even of ₹100 in rural areas. The BOI RD Scheme has gone a step further and made it accessible for people of all income levels. So, plan your recurring deposits with an online BOI RD calculator to efficiently maximise your returns and realize your financial goals.
Enjoy the Star Flexi Recurring Deposit scheme which allows you to choose your core installment and additional monthly flexi instalments in multiples of the core amount. For a minimum tenure of 12 months and a maximum tenure of 10 years.
BOI RD Interest Rates
The Bank of India RD rates are attractive and competitive with flexible tenure options, helping you grow your wealth gradually. BOI offers RDs with a wide range of maturity periods between 3 months to 10 years. As well as the Star Flexi Recurring Deposit offers maturity periods of 12 months to 10 years at the same interest rates but you can choose your core deposit amount and also opt for additional monthly flexi installments of the core amount
Here are the Bank of India RD interest rates for deposits of less than ₹2 Crores for both general and senior citizen investors:
| Maturity Period | Interest Rate% for General Individuals | Interest Rate% for Senior Citizens |
|---|---|---|
| 91 days to 179 days | 4.50% | 5.00% |
| 180 days to 210 days | 5.50% | 6.00% |
| 211 days to 269 days | 5.50% | 6.00% |
| 270 days to less than 1 year | 5.75% | 6.25% |
| 1 Year | 6.80% | 7.30% |
| Above 1 Year to less than 2 Years | 6.80% | 7.30% |
| 2 Years | 7.25% | 7.75% |
| Above 2 Years to less than 3 Years | 6.75% | 7.25% |
| 3 Years to less than 5 Years | 6.50% | 7.00% |
| 5 Years to less than 8 Years | 6.00% | 6.50% |
| 8 years & above to 10 Years | 6.00% | 6.50% |
*Note- The interest rates are subject to market rates and may change. Please check Bank of India’s official website for the latest information.
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Bank of India RD Calculator
It is easy to simplify your RD savings deposit planning with an online RD calculator. It is a handy online tool that helps you gauge the potential maturity amount of your investment. Using the calculator will help you gain valuable information about your investment as you can experiment with different tenures, investment amounts and interest rates. Thus, helping you find the right investment strategy to reach your financial goals.
To use the calculator, enter your deposit amount, maturity period and interest rate, and you will get the estimated maturity amount.
RD Calculator
You can also calculate the maturity amount manually using the formula below:
Maturity Value = Deposit × [((1 +r/100)^n – 1 / (r/100)] × (1 + r/100)
Let’s calculate the maturity amount if the deposit amount is ₹2000, interest rate is 6.8% and the tenure is 1 year.
Maturity Value = 2000 × [((1 +0.00567)^12 – 1 / (0.00567)] × (1 + 0.00567)
Maturity Value = 2000 × [((1 .00567)^12 – 1 / (0.00567)] × (1.00567)
Maturity Value = ₹24,897
Therefore, the estimated maturity amount for your Bank of India RD with a monthly deposit of ₹2,000 for a tenure of 1 year at 6.80% interest rate is approximately ₹24,897.
Comparing RD Interest Rates of Top Banks
| Bank Recurring Deposit | RD Interest Rates (p.a) General Public | RD Interest Rates (p.a) Senior Citizens |
|---|---|---|
| Bank of India RD | 4.50% to 6.00% | 5.00% to 6.50% |
| HDFC RD | 4.50% to 7.25% | 5.00% to 7.75% |
| IDBI Bank RD | 6.25% to 7.00% | 6.75% to 7.50% |
| Yes Bank RD | 6.10% to 7.75% | 6.60% to 8.25% |
| Union Bank of India RD | 5.75% to 6.50% | 6.25% to 7.00% |
| South Indian Bank RD | 5.00% to 7.40% | 5.50% to 7.90% |
| Indian Overseas Bank RD | 5.75% to 7.30% | 6.25% to 7.80% |
| Federal Bank RD | 5.75% to 7.50% | 6.25% to 8.00% |
| DBS Bank RD | 6.00% to 7.50% | 6.50% to 8.00% |
| Indian Bank RD | 4.50% to 7.25% | 5.00% to 7.75% |
| Canara Bank RD | 6.15% to 7.25% | 6.65% to 7.75% |
| IndusInd Bank RD | 7.00% to 7.75% | 7.50% to 8.25% |
| Jammu and Kashmir Bank RD | 5.75% to 7.10% | 6.25% to 7.60% |
| Axis Bank RD | 5.75% to 7.20% | 6.25% to 7.85% |
| Karur Vysya Bank RD | 6.25% to 7.50% | 6.25% to 8.00% |
| Karnataka Bank RD | 5.80% to 7.40% | 6.20% to 7.90% |
| Saraswat Bank RD | 7.00% to 7.50% | 7.50% to 8.00% |
| ICICI RD | 4.75% to 7.20% | 5.25% to 7.75% |
| State Bank of India RD | 6.50% to 7.00% | 7.25% to 7.50% |
| Punjab National Bank RD | 6.00% to 7.25% | 6.50% to 7.75% |
| City Union Bank RD | 6.25% to 7.00% | 6.50% to 7.50% |
| Dhanalakshmi Bank RD | 6.50% to 7.25% | 6.50% to 7.75% |
| Bank of Maharashtra RD | 5.50% to 6.25% | 6.00% to 6.75% |
| Bank of Baroda RD | 5.75% to 7.25% | 6.25% to 7.75% |
| Bandhan Bank RD | 4.50% to 7.85% | 5.25% to 8.35% |
| TMB RD | 6.75% to 7.75% | 7.00% to 8.25% |
| Post Office RD | 6.50% | 6.50% |
Note: The interest rates are subject to change. Do visit the official website for updated rates.
Did you know, besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.
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Features & Benefits of BOI Recurring Deposit
BOI recurring deposit scheme with a range of features and benefits is designed to help you grow your savings steadily over time. These are:
- Flexible Investment: You can start your RD account with a minimum monthly deposit of ₹500 in urban areas and ₹100 in rural areas, making it accessible to a wide range of investors.
- Choice of Core and Flexi Instalments: The Star Flexi RD scheme allows you to choose your core installment amount and also opt for monthly flexible installments in multiples of the core installment. Giving you the opportunity to align your investments to your financial goals.
- Tenure Options: You can choose a tenure ranging from a minimum of 3 months to a maximum of 10 years, as well as 12 months to 10 years for the Star Flexi RD providing flexibility of investment to fit your financial goals.
- Interest Rates: Bank of India offers competitive interest rates on RDs ranging from 4.50% – 7.50%, giving you the opportunity to earn attractive returns on your savings.
- Easy Account Opening: Opening an RD account with Bank of India is an easy and convenient hassle-free process, making it easy for customers to start saving.
- Loan Facility: Customers can also avail of loan facilities against their RD account, including overdraft facilities. This provides liquidity in times of need without disrupting your recurring deposit savings.
- Nomination Facility: The RD account comes with a nomination facility, allowing you to designate nominees who will receive the maturity amount in the event of the account holder’s demise.
- Premature Withdrawal: The BOI RD can be prematurely withdrawn with applicable penal charges.
TDS for BOI Recurring Deposits
While Bank of India’s recurring deposits offer a convenient way to save regularly and earn interest, it’s important to know how taxes might apply to your earnings. Here’s a breakdown of Tax Deducted at Source (TDS) on BOI RDs:
- The TDS Threshold: Similar to other banks, BOI deducts TDS on the interest earned on your RD only if it surpasses a specific limit within a financial year. This threshold amount usually depends on your age.
- TDS Calculation and Minimising Impact: If your projected interest for the year exceeds the threshold, BOI will deduct TDS at a specific rate. To minimize this deduction, ensure you submit your PAN details to the bank. This allows BOI to apply the lower 10% TDS rate on the interest exceeding the limit. Otherwise, without PAN details, a higher TDS rate of 20% might be applied which will reduce your overall earnings.
BOI RD Premature Withdrawal
If there comes a need for your BOI RD funds early, Bank of India will allow for premature withdrawal. However, there will be a penalty on the interest earned, not your principal amount. The penalty depends on your original RD term and how long it remained active. Early withdrawal means lower returns, so explore alternatives like loan against FD or an Overdraft option from the bank if possible.
Here are the penalty charged on premature withdrawal of a recurring deposit account:
| Category of deposits | Premature penalty charges |
|---|---|
| Deposits less than ₹5 Lakhs withdrawn on or after completion of 12 months. | No penalty charge |
| Deposits less than ₹5 Lakhs withdrawn prematurely before completion of 12 months | 0.50% |
| Deposits of Rs. 5 Lacs & above withdrawn prematurely | 1.0% |
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