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Recurring deposits are one of the best ways to save a small part of your money every month without burdening yourself. Bank of India Recurring Deposit interest rates can help you gain a substantial profit on your savings thus facilitating you to achieve the financial goals you have set.

Bank of India provides its customers with the facility of recurring deposits which can be opened in the names of individuals or even minors (under the guardianship of their parents), two or more people (joint accounts), illiterates and blind persons.

The minimum deposit amount needed to open an RD account in BOI is Rs. 100 in rural and semi-urban branches, whereas, in urban and metro branches, it is Rs. 500. Senior citizens can avail of an extra interest rate of 0.50% over the regular rates.

Bank of India RD Rates 2021

Theinterest rates provided by the Bank of India can help you save your hard-earned money in a systematic way and earn a profit on it over a period of time. Let’s have a quick look at the competitive interest rates provided by the bank:

Tenure Rates for General Citizens Rates for Senior Citizens
180 days – 269 days 6.25% 6.75%
270 days – 364 days 6.25% 6.75%
1 year – 1 year 364 days 6.65% 7.15%
2 years – 2 years 364 days 6.70% 7.20%
3 years – 4 years 364 days 6.50% 7.00%
5 years – 7 years 364 days 6.50% 7.00%
8 years – 10 years 6.35% 6.85%

BOI RD Interest Rates -Special Features

  • The minimum deposit amount needed to open an RD account in the Bank of India is Rs. 500 (in urban and metro branches)
  • The tenure ranges from 6 months to 120 months (10 years)
  • Senior citizens are given the privilege of earning an extra 0.50% interest rates over the regular rates
  • The maximum interest rate offered by the bank to general citizens is 6.75% and 7.00% to senior citizens
  • The interest is compounded annually
  • TDS deductions are as per the existing rules at the time of opening the account
  • Bank of India provides a nomination facility to any family member or spouse

Bank of India RD Premature Withdrawal Rules

If the account is closed within the first three months of opening, the bank will not provide any interest and the principal amount will be refunded to the source. If the deposit amount is withdrawn before the maturity, a penalty is levied by the bank as per the norms and the accrued interest will be reduced for the last quarter as a result. Partial withdrawal of deposit is not allowed.

How to Calculate BOI RD Interest?

The interest on the Bank of India Recurring Deposit is compounded at each quarter.

The formula used for calculation of the maturity value is –

A= P x (1+R/N) ^ (Nt)

Here,

A = Maturity Amount.

P = Recurring Deposit installment

N = Number of times the interest is compounded.

R = Rate of Interest

t = the tenure

For example, Mr A, who lives in Delhi and is below 60 years of age, decides to open an RD account with the Bank of India with a deposit of Rs 500 for 5 years. Therefore, the applicable interest rate for him is 6.5%. In that case, his total interest amount at the end of the maturity period will be Rs 5498, and his total maturity amount will be Rs 35498.

Who is Eligible to Open an RD Account with BOI?

The list for types of eligible individuals who can open a recurring deposit in BOI are mentioned below –

  • Individuals and Hindu Undivided Family
  • A joint account held by two individuals
  • Minor account handled by legal guardians of an under-aged individual.
  • Differently-abled individuals

Documents Required for BOI Recurring Deposit Account Opening

The following documents (any 1) are required for address proof –

  • Electricity Bill
  • Telephone Bill
  • Passport
  • Bank Statement
  • Certificate/ID card issued

The following documents (any 1) are required as identity proof –

  • Passport
  • Voter ID card
  • PAN card
  • Government ID card
  • Driving License
  • The Senior Citizen ID card
  • Ration Card

Bank of India – Term-wise RD Interest Rates

BOI – Short Term RD Rates: One can open a short term RD in the Bank of India. The tenure for the same usually ranges from 6 months to less than 2 years and the rate of interest offered ranges from 6.25% to 6.65%. The amount for which the mentioned rates offered by the bank starts from Rs. 2 crores to Rs. 10 crores.

Medium Term and Long Term Interest Rates By Bank of India: Medium-term RDs have their tenures ranging from 2 years to less than 5 years whereas the tenures for Bank of India long-term interest rates ranges from 5 years and above. The interest rates offered on medium-term recurring deposits is 6.50% to 6.70% p.a. while on long-term RDs, it is from 6.35%- 6.50% p.a.

Bank of India Senior Citizen RD Interest Rates:

  • The tenure of the deposit must be more than 6 months in the case of senior citizens
  • The applicant should be more than 60 years of age and must be the first account holder
  • In order to avail the additional rate of interest of 0.50%, the minimum deposit must be more than Rs. 100. However, the maximum amount one can deposit is Rs. 2 crores

Bank of India RD Calculator

The RD maturity amount you get is the sum of all the below-given parameters. Alternatively, one can also use the Bank of India RD interest calculator to check the interest earned on their deposit. The calculator asks for the values of the below-given factors:

Deposit Amount: The minimum deposit is the initial amount deposited by a customer in their account. The deposit amount for BOI RD starts from as low as 100 in rural and semi-urban branches and Rs. 500 in urban and metro branches.

BOI RD Interest Rates: Bank of India offers a higher rate of interests on recurring deposits with longer tenure and lower interest rates for an account opened for a shorter period. The highest interest rate offered by the bank is 6.75% for the deposit amount.

Deposit Tenure: As mentioned in the previous point, low-interest rates are offered for short tenure RDs and vice-versa.

How to Open an RD with Bank of India?

Bank of India’s existing customers can simply open a BOI RD account with an online method – Internet Banking. All they need is an active internet banking account and then they can open an account online directly linked to the savings/current account. Those who don’t have an account with BOI can approach the nearest branch for instructions on opening an account. Carry all the mentioned documents while going to the bank.

Bank of India RD – FAQs

Ques. What is the Penalty on Late Payments?

Ans. Bank of India charges a penalty if the monthly payment is not made on time. The bank charges Rs. 1.50 for every Rs. 100 per month for deposits of 5 years and less and Rs. 2 for every Rs. 100 per month.

Ques. Who can apply for a BOI RD account?

Ans. All Indian residents and Hindu Undivided Families (HUF) can open an RD account with the Bank of India.

Ques. When does the maturity happen for an RD deposit?

Ans. The maturity of the deposit is usually one month after the last installment or due date, whichever is later.

Ques. Is TDS applicable on recurring deposits?

Ans. As per the Finance Act,2015, recurring deposits will have an applicable TDS on the maturity amount.

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