Bank of India Lowers FD Rates by Up to 25 bps, Discontinues Its 400-Day Special FD Offering 7.30% Interest

Bank of India (BOI), one of the major public sector lenders in India, has recently introduced some revisions to the Interest rate for Fixed Deposit (FD). The Bank has discontinued its special 400-day FD scheme. As per the bank’s press release, the revised rates are effective from April 15, 2025.

Discontinuation of 400-day Special FD scheme

The bank has withdrawn its 400-day Special FD scheme, which was offering a higher interest rate of 7.30%. In addition to this, the bank has also reduced interest rates on several of its short- and medium-term fixed deposit tenures for amounts below Rs. 3 crore.

For FD tenures between 91 days and 179 days, the interest rate has been cut down to 4.25% from 4.50%. For tenures between 180 days and less than 1 year, the rate has been cut down by 25 bps, from 6% to 5.75%. For one-year deposits, the bank has dropped the interest rates to 6.80% from 7%.

FD rates for senior citizens and super senior citizens

For deposits below Rs. 3 crore, the bank offers an extra rate of interest of 0.50% on deposits of senior citizens and 0.65% on deposits of super senior citizens on FD with a maturity period of 6 months and above.

What are the penalties for premature withdrawal of FDs?

If you are withdrawing your money from your deposits below Rs. 5 lakh after completing 12 months, the bank will not impose any penalty. However, if you withdraw before 12 months on deposits below Rs. 5 lakhs, the bank will levy a penalty of 0.50% and a penalty of 1% is levied on premature withdrawal of deposits of Rs. 5 lakhs and above.

Additionally, no penalty is charged if the deposit is closed early for renewal into a longer-term deposit than the remaining period of the original FD. Also, no penalty applies in case of premature withdrawal due to the death of the depositor.