Bank of India RD Interest Rates 2026

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. 

Bank of India RD Interest Rates 2026 

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. 

1. Visit BOI Net Banking/App – Open the official Bank of India website or BOI mobile banking app. 

2. Log in Securely – Enter your user ID, password, and complete OTP authentication. 

3. Go to Deposits Section – Select ‘Recurring Deposit (RD)’ under the deposits/services menu. 

4. Enter RD Details – Choose monthly deposit amount, tenure, and linked savings account. 

5. Set Auto-Debit – Enable automatic monthly deduction from your account. 

6. Confirm & Submit – Review details and submit the request. 

7. 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. 

1. Visit Nearest BOI Branch – Go to your convenient Bank of India branch. 

2. Collect RD Form – Ask for the Recurring Deposit account opening form. 

3. Fill Required Details – Enter deposit amount, tenure, nominee details, and account info. 

4. Submit KYC Documents – Provide ID proof, address proof, and photographs (if not already updated). 

5. Deposit First Installment – Pay the initial monthly amount via cash/cheque. 

6. Account Setup – Bank verifies details and opens your RD account. 

7. 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: 

Interest depends on: 

• Monthly deposit amount  

• Interest rate (given by the bank)  

• Time period (in months/years) 

Easy Way to Think About It 

Each monthly deposit earns interest for a different duration: 

• First month’s money earns interest for full time  

• Last month’s money earns interest for only 1 month  

That’s why banks calculate RD interest using a slightly different method than FD. 

Let’s say: 

• You deposit ₹1,000 every month  

• Interest rate = 7% per year  

• Time = 12 months  

Step-by-step idea: 

1. Total deposit = ₹1,000 × 12 = ₹12,000  

2. Bank calculates interest on each month’s deposit  

3. You earn approx ₹455–₹500 interest  

Final amount: ₹12,000 + ₹480 (approx. interest) = ₹12,480 

Bank of India RD Account Eligibility Criteria 

• Individuals (both residents and non-residents, as per bank norms)  

• Minors (with a parent or legal guardian)  

• Sole proprietors  

• Partnership firms  

• Limited companies  

• Hindu Undivided Families (HUFs)  

• Trusts, societies, clubs, and associations  

• Government bodies or organizations (subject to bank approval) 

Documents Required for Bank of India RD Account 

• Duly filled Recurring Deposit (RD) account opening form  

• Proof of Identity (KYC documents) such as:  

• Aadhaar Card  

• PAN Card  

• Passport  

• Voter ID  

• Driving License  

• Proof of Address (if not included in ID proof):  

• Aadhaar Card  

• Utility bills (electricity, water, etc.)  

• Passport  

• Rent agreement  

• Recent passport-sized photographs  

• 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.