Bank of India Fixed/Short Term Deposit
Bank of India offers fixed deposits that range from short tenures to long ones. Short term fixed deposits are generally those that have a deposit period of less than or equal to one year or 12 months.
This scheme is aimed at benefiting customers who wish to invest in short-term financial instruments. It is ideal for customers who do not want to wait for long periods to reap benefits on their FDs.
Interest on short term deposits is paid on a number of days basis considering 365 days in a year.
Eligibility Criteria for applying for Bank of India Fixed/Short Term Deposit
People who meet the following criteria, are eligible to apply:
- KYC Documents need to be submitted by applicants who wish to avail the short term fixed deposit account
- Documents required to open this account
- Proof of residence
- Proof of identification
- Recent passport sized photograph of the applicant
- Any of the following people or groups may apply for this short term deposit scheme
- Individual - Single Accounts
- Two or more individuals - Joint Accounts
- Sole Proprietary Concerns
- Limited Companies
- Associations, Clubs, Societies, etc.,
- Trusts
- Partnership Firms
- Illiterate Persons
- Blind Persons
- Minors
- Joint Hindu Families (HUFs)
- Municipalities
- Government and Quasi-Government Bodies
- Panchayats
- Religious Institutions
- Educational Institutions (including Universities)
- Charitable Institutions
Features of Bank of India Fixed/Short Term Deposit
Amount | Minimum Amount: Rs.10,000/-in Metro and Urban Branches and Rs.5000/- in Rural and Semi urban Branches For senior citizens the minimum deposit amount is Rs5000/- Minimum amount per single deposit for a period of 7 days to 14 days is Rs. 1 Lac. Maximum Amount: No upper limit applies to the fixed deposit amount under this scheme |
Rate of Interest | Interest will be paid half yearly on 1st October or on 1st April. In case these days fall on national holidays, the interest will be paid on the following day. |
Deposit Period | Minimum: 7 days Maximum: 12 months |
TDS | The payment/credit of interest in the account will be subject to TDS as applicable) PAN number is required for accounts where TDS is applicable. |
Loan against Bank of India Short/Fixed Term Deposit | N.A. |
Nomination (if any) | N.A. |
Premature withdrawals | Pre-mature withdrawal of deposit amount under the short-term deposit scheme is permissible and does not attract any pre-closure fee. The interest applicable for those number of days for which the deposit was with the bank is paid out at a rate applicable during the period of deposit. |
Interest will be paid half yearly on 1st October or on 1st April. In case these days fall on national holidays, the interest will be paid on the following day.
Interest is paid at a rate which is applicable during the time the deposit is held with the bank and not at the contracted rate of interest.
Also, FD interest is paid only for the number of days the deposit is held with the bank.
FAQs on Bank of India Short/Fixed Term Deposit
- What is the minimum tenure for Short-term deposits?
The minimum tenure and the corresponding minimum deposit amount for short term deposits is 7 days and Rs.1 lac, respectively.
- Does the Bank of India Short/Fixed Term Deposit levy any pre-closure fee for premature withdrawal?
No. There is no fee for premature closure of deposit account.
- Is renewal of deposits made under this scheme allowed even before maturity date?
Yes. Renewal of deposits is allowed under permissible guidelines issued by the bank from time to time. This renewal can be made even before the deposit reaches its maturity age.
- When does the minimum deposit amount criteria not apply?
The minimum deposit amount criteria does not apply to subsidy granted under government sponsored schemes, earnest money and court order attached deposits.
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