Bank of India has revised its fixed deposit (FD) interest rates, giving depositors an opportunity to earn higher returns on selected deposit periods.
The bank has increased interest rates on several deposit tenures and introduced an updated 500-day special fixed deposit option.
New Interest Rates on Bank of India FDs
For deposits below ₹3 crore, the bank has increased rates across selected maturities between one year and less than three years.
The revised rates include:
- One-year FD: 6.60% per annum, increased from 6.50%.
- One year to less than two years: 6.70%, increased from 6.50%.
- Special 500-day FD: 6.85% per annum.
These changes offer depositors revised interest options across different investment periods.
Why Has the Bank Increased FD Rates?
Banks are adjusting deposit rates amid changing liquidity conditions and increased demand for credit.
The Reserve Bank of India’s October 2026 repo rate increase has also influenced the banking sector. However, FD rate changes depend on individual banks’ funding requirements and decisions.
What Should FD Depositors Know?
Customers should compare interest rates across different tenures before opening a fixed deposit. The actual return depends on the selected period, deposit amount and applicable bank conditions.
Senior citizens may also qualify for additional interest benefits under eligible deposit schemes.
More Banks Are Reviewing Deposit Rates
Bank of India’s latest revision comes amid similar changes across the banking industry. Other lenders, including Punjab National Bank and Canara Bank, have also revised selected FD rates in November.
The latest developments indicate that banks are adjusting their deposit offerings as competition for customer savings continues.
