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.
Know more about Recurring Deposit
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
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
- How is the compounding of interest done?
- What is the penalty for delay in payment of instalment?
- Is there a fixed maturity value on Star flexi-recurring deposit scheme?
- Can I know the amount which I will be receiving at the time of maturity before starting to invest?
- Are KYC (Know Your Customer) norms applicable for opening a RD account with Bank of India?
Compounding of interest is done on a quarterly basis.
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.
There is no fixed maturity value.
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.
Yes, KYC norms are applicable when it comes to opening a recurring deposit account with the lender.
RD Interest Rate Pages
- United Bank RD Interest Rates
- Uco Bank RD Interest Rates
- Allahabad Bank RD Interest Rates
- Central Bank RD Interest Rates
- Federal Bank RD Interest Rates
- Indian Bank RD Interest Rates
- Andhra Bank RD Interest Rates
- Kotak Mahindra RD Interest Rates
- Syndicate Bank RD Interest Rates
- IOB RD Interest Rates
- City Union Bank RD Interest Rates
- Citybank RD Interest Rates
- Indusind Bank RD Interest Rates
- Corporation Bank RD Interest Rates
- BOM RD Interest Rates
RD Other Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes
- Monthly Recurring Deposit
- Co-operative Bank Recurring Deposit
- City Union Bank Recurring Deposit
- Indian Bank Recurring Deposit
- Union Bank Recurring Deposit
- UCO Bank Recurring Deposit