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Bank of India Recurring Deposit

Bank of India offers different type of recurring deposits. An RD account can be opened for a period that ranges between 6 months and 10 years with the rate of return being between 5.50% p.a. to 6.00% p.a. for general citizens. Senior citizens are offered additional interest of 0.50% p.a. on all deposit tenures.

Rate of return offered by Bank of India on RDs

The table listed below contains the interest rate offered by Bank of India on recurring deposits depending on the tenure:

Tenure Interest rate of general public (p.a.) Interest rate of senior citizens (p.a.)
180 days to 269 days 5.50% 6.00%
270 days to less than 12 months 5.50% 6.00%
12 months to less than 24 months 6.00% 6.50%
24 months to less than 36 months 5.90% 6.40%
36 months to less than 60 months 5.90% 6.40%
60 months to less than 84 months 5.90% 6.40%
84 months to 120 months 5.90% 6.40%

Note: The mentioned rates are for deposits less than Rs.2 crore.

Types of Recurring Deposits offered by Bank of India

The bank offers two type of recurring deposits. They are:

  • Recurring Term Deposit
  • Star-Flexi Recurring Deposit

Features of Recurring Term Deposit

The features of Recurring Term Deposit are listed below:

  • Account can be opened with a minimum deposit of Rs.100 (Rs.500 in Metro and Urban branches)
  • There is no cap on the maximum deposit amount
  • TDS is applicable
  • Can be opened for a period that ranges between 6 months and 10 years

Features of Star-Flexi Recurring Deposit

Listed below are the features of Star-Flexi Recurring Deposit

  • Minimum tenure is 12 months
  • Offers flexibility to choose core instalment and to choose monthly flexi instalment in multiples of the core instalment
  • Nomination facility available

Who can open a Recurring Deposit account with Bank of India?

In order to open a recurring deposit account with Bank of India, you must be a resident Indian. The RD accounts can be opened either singly or jointly. Minors are also eligible to open an account with the bank.

How to open a Bank of India RD account?

You can open a RD account with the bank by:

  • Visiting the bank branch along with the necessary documents
  • Applying for it through net banking

Documents Required

The documents which need to be submitted are listed below:

  • Identity proof
  • Address proof
  • Passport sized photograph

Short-term Recurring Deposit Interest Rates

RD accounts opened for a period that ranges between 6 months and less than a year are known as short-term recurring deposits. Bank of India offers interest of 5.50% p.a. on such deposits. Senior citizens are offered 6% p.a.

Medium Recurring Deposit Interest Rates

Medium-term recurring deposits are those which have a tenure between 1 year and 3 years. The interest offered on such deposits is in the range of 5.90% p.a. to 6.00% p.a. Citizens above the age of 60 years are offered between 6.40% p.a. and 6.50% p.a.

Long Term Recurring Deposit Interest Rates

Deposits opened for a period in excess of 3 years fall under the category of long-term recurring deposits. The interest payable on such deposits is 5.90% p.a. for general citizens and 6.40% p.a. for senior citizens.

Bank of India RD Frequently Asked Questions

  1. How is the compounding of interest done?
  2. Compounding of interest is done on a quarterly basis.

  3. What is the penalty for delay in payment of instalment?
  4. For delay in the payment of instalment, Bank of India charges Rs.1.50 for every Rs.100 per month for deposits having a tenure below 5 years. The penalty is Rs.2 for every Rs.100 on deposits having a tenure over 5 years.

  5. Is there a fixed maturity value on Star flexi-recurring deposit scheme?
  6. There is no fixed maturity value.

  7. Can I know the amount which I will be receiving at the time of maturity before starting to invest?
  8. Yes, you can. It can be done using the RD calculator. All you need to do is enter details like deposit amount, tenure, and rate of interest.

  9. Are KYC (Know Your Customer) norms applicable for opening a RD account with Bank of India?
  10. Yes, KYC norms are applicable when it comes to opening a recurring deposit account with the lender.

News About Bank of India Recurring Deposit

  • Union Protests Against Diverting PF Funds

    A notification issued on March 8th stated that PF deposits that remain unclaimed for 7 years would be diverted to a Senior Citizens Welfare Fund which is a new scheme launched to take better care of our senior citizens. The funds that could be diverted include Employees’ Provident Fund, Public Provident Fund, National Savings Certificates, Post Office Savings Accounts and Post Office Recurring Deposits. As per the EPF Act of 1952, the funds cannot be diverted for any other purpose. Out of a total of 15 crore accounts, 9.23 crore have been deemed inoperative. These accounts have a total deposit of Rs.43,000 crore. These accounts have not seen fresh deposits in at least 3 years. Central Trade Union Leaders protested against this move. However, the Centre may have to rethink this move and forfeit the PF savings. The matter will be taken up with Arun Jaitley, Finance Minister.

    1 August 2016

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