Bank of IndiaFixed Deposit

• A non-cumulative fixed deposit option is provided by the Bank of India in which interest is paid half-yearly.
• This scheme is the best fit for those who do not have a regular income or those who want to add to their existing income.
• There are two tenures: Short term tenure is of 7 days and fixed term of 1-10 years
• The short term minimum deposit amount is Rs. 1000 and the fixed-term deposit is Rs. 10000
• Premature withdrawal is allowed without penalty if withdrawn after 12 months. If withdrawn before 12 months, 0.5% and 1% on deposits below Rs.5 lakh and of/above Rs. 5 lakh respectively

• Under this cumulative fixed deposit scheme, the interest is not accumulated till maturity but paid to the depositors on a monthly or quarterly basis, as chosen by them.
• Premature withdrawal is allowed after completing 12 months. If withdrawn before, 0.5% penalty imposed on deposits less than Rs. 5 lakh and 1% on deposits of/above Rs. 5 lakh.
• Investors can opt to get the interest amount on a monthly or quarterly basis, as per their preference
• Interest earned is subject to Tax Deducted at Source (TDS)
• Monthly interest is credited to investors’ current account
• Quarterly interest is credited to investors’ savings account

• As the name implies, this is a tax-saving fixed deposit scheme offered by the Bank of India that offers income tax benefits for the account holders under Section 80C of the Income Tax Act, 1961 and the limit can go up to Rs. 1.5 lakh per financial year
• The tenure ranges from 5 years to 10 years
• The minimum deposit amount needed is Rs. 10,000

• This scheme can be availed both in the form of a savings account and a term deposit account.
• For term deposits, the bank provides two options, viz. Cumulative and non-cumulative.
• This scheme is beneficial for those who are selling their capital asset, for instance, real estate
• The amount received by selling is termed as a capital gain.
• Investors can open this account to save it from getting taxed
• Premature withdrawal penalty is 0.5% for deposits below Rs. 5 lakh and 1% above Rs. 5 lakh

For a Bank of India FD with tenure ranging from 7 days to 12 months, the interest rate offered is from 2.85% p.a. to 4.35% p.a. These deposits are known as short term deposits as their tenure is less than 1 year.

Medium-term fixed deposits have their tenures ranging from more than 1 year to less than 5 years. The interest offered by the bank on these deposits is around 5.10% – 5.15% p.a.

These deposits have their tenure ranging from 5 years to 10 years and offer an interest rate of 5.15%.