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For investors who prefer stability over risk, a recurring deposit (RD) is a simple way to build savings with assured returns. You invest a fixed amount every month and your money grows at a guaranteed interest rate.
Bank of India offers RD schemes starting at just ₹500 per month, with flexible tenures from 6 months to 10 years. As of 2026, interest rates go up to 7.05% for general customers and 7.55% for senior citizens.
Here’s a snapshot of its major details:
Feature
Details
Minimum Monthly Deposit
₹500
Tenure
6 months to 10 years
Interest Rates (General)
Up to 7.05%
Interest Rates (Senior)
Up to 7.55%
Returns
Fixed and guaranteed
Loan/OD Facility
Available against RD
Special Scheme
Star Flexi RD (extra flexible deposits)
Note: The Bank of India can change interest rates and features and terms at any time because of the banks policies and the financial year that applies. You should check with the Bank of India. Look at its official website for the latest information before you invest.
The Bank of India has something called a Star Flexi RD. This is where you pay a fixed amount every month. You can add more money to your deposit anytime you want. The Bank of India Star Flexi RD earns interest. The money you put in matures together. This gives you the freedom to do what you want with your money. It also helps you save money in a disciplined way.
Let us look at the latest interest rates that the Bank of India is offering and the key features of the Bank of India Star Flexi RD, in detail.
The Bank of India RD interest rates 2026 follow fixed deposit slabs. Here’s a snapshot of the rates for deposits less than ₹2 crores:
Table Mentioned
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 an RD Account in Bank of India Online?
You can easily open a Bank of India Recurring Deposit (RD) account online through internet banking or the BOI mobile app in 2026, without visiting a branch.
Visit BOI Net Banking/App – Open the official Bank of India website or BOI mobile banking app.
Log in Securely – Enter your user ID, password, and complete OTP authentication.
Go to Deposits Section – Select ‘Recurring Deposit (RD)’ under the deposits/services menu.
Enter RD Details – Choose monthly deposit amount, tenure, and linked savings account.
Set Auto-Debit – Enable automatic monthly deduction from your account.
Confirm & Submit – Review details and submit the request.
Instant Confirmation – RD account is created instantly, and you’ll receive confirmation via SMS/email.
How to Open an RD Account in Bank of India Offline?
If you prefer in-person assistance, you can open an RD account by visiting a Bank of India branch with basic documents.
Visit Nearest BOI Branch – Go to your convenient Bank of India branch.
Collect RD Form – Ask for the Recurring Deposit account opening form.
Fill Required Details – Enter deposit amount, tenure, nominee details, and account info.
Submit KYC Documents – Provide ID proof, address proof, and photographs (if not already updated).
Deposit First Installment – Pay the initial monthly amount via cash/cheque.
Account Setup – Bank verifies details and opens your RD account.
Receive RD Passbook/Details – You’ll get account confirmation and deposit schedule.
How to Calculate RD Interest Rates for Bank of India?
A Recurring Deposit (RD) means you deposit a fixed amount every month, and the bank gives you interest on it.
Simple Formula:
You don’t need to remember the full formula. Just understand:
PAN Card (mandatory or Form 60 if PAN is not available)
Bank account details (if linking RD with an existing BOI savings account)
Want another easy way to grow your money? Fixed deposits is 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 2026
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.
How often is interest paid out for BOI RD?
Interest for a Bank of India (BOI) Recurring Deposit is compounded quarterly and paid at maturity, along with the principal.
