Latest Bank of India RD Interest Rates: Everything You Need to Know

Not everyone has a huge risk appetite when it comes to investing. Many prefer an option that is simple and steady. That’s what a recurring deposit (RD) offers. You set aside a fixed amount each month and the bank helps your money grow with guaranteed returns.

Bank of India is one of the country’s top public sector banks. It offers RDs with flexible tenures, fixed interest and higher rates for seniors. The Bank of India RD scheme lets you start with just ₹500 a month. You can pick a tenure from 6 months to 10 years and earn assured returns. As of 2025, the Bank of India recurring deposit interest rates go up to 7.05% for general customers. And 7.55% for senior citizens on select slabs. 

Let’s explore the latest interest rates and key features in detail.

About Bank of India

Bank of India has been a trusted savings partner for decades with its strong branch network and digital platforms. Among its deposit options, RDs are popular because they are safe, flexible and easy to manage.

With the Bank of India RD scheme, you can begin with as little as ₹500, pick a tenure that fits your goal and even get a loan or overdraft against your RD balance if you need liquidity. The bank also offers Star Flexi RD. In this scheme, you pay a fixed core instalment every month. You can add extra ‘flexi’ contributions in months when you want to invest more. Both the core and flexi deposits earn interest and mature together

Bank of India RD Interest Rates 2025

The Bank of India RD interest rates 2025 follow fixed deposit slabs. Here’s a snapshot of the rates for deposits less than ₹2 crores:

Tenure	General Public (p.a.)	Senior Citizens (p.a.)
180 days to 269 days	5.00%	5.50%
270 days to less than 12 months	5.50%	6.00%
12 months to less than 24 months	6.00%	6.50%
444 days	7.05%	7.55%
24 months to less than 36 months	6.75%	7.25%
36 months to less than 60 months	6.50%	6.40%
60 months to less than 84 months	6.00%	6.50%
84 months to 120 months	6.00%	6.50%

Peak rates often come with special slabs. In this case, the 444-day tenure carries the highest returns of 7.55% for senior citizens.

Types of Recurring Deposits Offered by Bank of India

Bank of India offers two kinds of RDs. Both help you save monthly, but they work a little differently:

• Recurring Term Deposit: You put in the same fixed amount every month. At the end of the chosen period, you get back your savings with interest. Simple and predictable.
• Star Flexi Recurring Deposit: Here, you set a minimum monthly amount, but you can add extra money in the months you have more to spare. This option works well if you get bonuses, variable income or simply want more flexibility in your savings.

Why Choose Bank of India RD?

Here’s why many customers opt for the Bank of India RD scheme:

• Low entry: Start with just ₹500 per month 
• Flexible tenure: From 6 months up to 10 years
• Assured returns: Fixed rates across the tenure
• Loan option: Borrow against your RD balance if required
• Extra for seniors: 0.50% boost makes a noticeable difference over time
• No market risk: Returns are guaranteed, unlike equity-linked products

Things to Know Before Opening a Bank of India RD

• Bank of India recurring deposit interest rates are compounded quarterly and paid at maturity.
• If closed within 3 months, no interest is paid. After that, premature closure may attract a penalty of 1%. 
• TDS applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Form 15G or 15H can be submitted if eligible.
• Some special tenures offer the best rates, worth considering before booking.

How to Open a Bank of India RD?

You can open your RD online or offline:

• Bank of India Net Banking
• BOI Mobile App
• Nearest branch

Just choose your instalment, set the tenure and your account starts right away. The Bank of India recurring deposit interest rates 2025 make RDs an attractive and reliable pick. They come with low entry points, extra benefits for seniors and the option of Star Flexi RD for added flexibility.

Want another easy way to grow your money? Fixed deposits are a trusted way to build wealth with guaranteed returns. And with Fibe, you can start with just ₹1,000 and book your FD in minutes!

FAQs on Bank of India RD Interest Rates 2025

Is there a penalty for missing an RD instalment in the Bank of India?

Yes. Bank of India charges a penalty if you miss an RD instalment. For RDs with a tenure of up to 5 years, the penalty is ₹1.50 per ₹100 per month of delay. For tenures above 5 years, the penalty is ₹2 per ₹100 per month. 

What happens if I close my Bank of India RD account before maturity?

If closed within 3 months, you earn no interest. After that, premature closure rules apply and a penalty may be deducted from the applicable rate.

Can I take a loan against my RD with Bank of India?

Yes. You can take a loan or overdraft against your RD balance. This option is available across schemes, including Star Flexi RD.