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Bank Of India Recurring Deposit Rate

A Recurring Deposit (RD) is a safe and convenient way of regulated savings for the fixed income group. It allows the account holder to deposit a fixed amount on a regular basis with the bank and earn an interest on it.

The interest earned is same as that of a fixed deposit without the need for a lumpsum deposit. This gives an advantage for recurring deposit account holders who want to invest a fixed amount of money on a monthly basis. Recurring deposits are a preferable way of saving for some planned expense in the near future.

Bank of India (BOI) Recurring Deposits

Bank Of India Recurring Deposit Rate

Bank of India offers competitive interest rates to benefit customer of recurring deposit accounts. It provides various facilities like flexible recurring deposits, nomination facility, premature withdrawal, etc.

Benefits of Bank of India Recurring Deposit Account
  • A safe and convenient to save a fixed amount of money every month
  • Ideal for people with a fixed monthly income who want to invest their surplus money but earn better rate of interest compared to savings bank account
  • Flexibility to choose tenure to suit individual needs – ranging from 6 months to 10 years
  • Bank of India recurring deposit accounts offers better rate of interest than a savings bank account
  • Interest compounded quarterly and paid on maturity
  • You can instructions to convert your recurring deposit scheme into fixed deposit at maturity
  • Nomination facility available

Types of Bank of India Recurring Deposit Accounts

Bank of India Regular Recurring Deposit Account
  • A simple recurring deposit account offering interest rates that of fixed deposits
  • Available for individuals only – either solely or jointly
  • KYC norms applicable for opening this account
  • Minimum monthly instalment of Rs.100 or above for semi-urban/rural branches and Rs.500 or above for metro/urban branches
  • There is no maximum limit on the monthly instalment amount
  • Interest earned is considered for TDS

Star Flexi Recurring Deposit
  • A flexible recurring deposit account that allows customers to deposit more than the core amount
  • Customer is required to choose a minimum Core Monthly instalment amount. It is fixed at Rs. 500 and in its multiples for metro and urban branches and Rs.100 for semi-urban and rural branches
  • Surplus deposit should be in multiples of the core amount. The customer can make any number of flexi instalment in a month
  • While the core amount earns interest at the rate prevailing during the time of opening the account, surplus amount earns interest at the rate prevailing on the date of deposit
  • No maximum limit on the surplus amount deposit

Bank of India Recurring Deposits Interest Rates

Bank of Maharashtra Recurring Deposit Rates
TenureInterest Rate (% p.a.)Senior Citizens (% p.a.)
6 – 9 months6.25%6.75%
9 months – 1 year6.25%6.75%
1 Year - 2 Years6.65%7.15%
2 years - 3 years6.70%7.20%
3 years - 5 years6.50%7.00%
5 years - 8 years6.50%7.00%
8 years - 10 years6.35%6.85%

Bank of India Recurring Deposit Interest Rates for NRI Customers

Special rates are offered for NRI customers

TenureFor deposits less than Rs. 1 CrFor deposits from Rs. 1 Cr – 10 Cr
1 Year & above but less than 2 Years6.65%6.50%
2 Years & above but less than 3 Years6.70%6.60%
3 Years to less than 5 years6.50%5.25%
5 years and above up to 10 Years6.50%5.25%
8 years & above to 10 Years6.35%5.25%

How to open a Recurring Deposit with Bank of India?

An existing customer of Bank of India can open an account at the nearest branch. If you are an existing customer with valid internet banking credentials, you can open the recurring deposit account online too. All facilities like standing instructions, nomination facilities, maturity instructions can also be set online.

A new customer can also open a recurring deposit at any of the branches upon completion of the KYC documents verification. It would be prudent to carry the following KYC documents with you while you visit the branch

  • Duly filled in application form
  • Passport size photographs
  • Identity proof – PAN card, voter ID card, passport, ration card, Government ID card, Senior Citizen ID card
  • Address proof – Drivers license, Aadhaar card, passport, ration card, voter ID card, electricity bill, telephone bill

FAQs - Bank of India Recurring Deposit Rate

1. What is the minimum amount required to open a regular recurring deposit with Bank of India?

The minimum opening balance for a regular recurring deposit is Rs. 100 for semi-urban/rural branches and Rs. 500 for metro/urban branches.

2. What is the minimum and maximum deposit period?

The minimum deposit tenure is 6 months and up to a maximum of 10 years.

3.Who all can open a recurring deposit?

  • Only individuals can open a recurring deposit
  • Individuals – solely or jointly
  • Illiterate persons
  • Blind persons
  • Minors

4. Is TDS applied on recurring deposits?

Yes, TDS is applied on the interest earned above a certain amount. The limit has been recently revised to Rs.40,000.

5. How is interest calculated on Star Flexi Recurring Deposit scheme?

Star Flexi account allows you to deposit surplus amount, in multiples of the core amount, any number of times in a month. However, the core amount earns interest at the rate prevailing during the time of opening the account, surplus amount earns interest at the rate prevailing on the date of deposit. Hence, there will be different interest rates applied on the deposits.

6. Can I close my recurring deposit within one month?

Yes, you can close your recurring deposit within one month. However, no interest shall be paid and only the principal amount shall be returned.

7. Is there a penalty for non-payment of monthly instalment?

The monthly instalment should be paid before the last calendar day of the month. Non-payment of the monthly instalment attracts a penalty charge

  • For deposits of 5 years or less – Rs. 1.50/- for every Rs.100 p.m
  • For deposits of 5 years and above – Rs. 2.00/- for every Rs. 100 p.m

8. What is the minimum and maximum monthly instalment one can pay in the Star Flexi Recurring Deposit scheme?

The minimum core monthly instalment amount is fixed at Rs. 500 and in its multiples for metro and urban branches. It is fixed at Rs.100 for semi-urban and rural branches. The surplus amount that one wishes to deposit should be in multiples of the core amount. The account holder can deposit any number of times in a month.

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