Bank of India Recurring Deposit

Bank of India offers two types of recurring deposit schemes – Recurring Term Deposit and Star Flexi Recurring Deposit Scheme. You can open an RD for different tenures ranging from 180 days to up to 10 years. The interest rates for RDs range from 6.25% to 7.25% p.a.

Recurring Term Deposit

You can invest an amount of your choice on a monthly basis and earn interest compounded on a quarterly basis.

Key Highlights

Things to Know

• Interest charges (as per the latest rates on term deposits) are applied on a quarterly basis, payable at the end of the term.
• KYC (Know your customer) guidelines are applicable for opening an RD account which includes clear documentation in the form of ID and address proofs.

Star Flexi Recurring Deposit Scheme

You can choose core installment and monthly flexi installments in multiples of the core installment.

Key Highlights

Things to Know

• Maximum Flexi installment can be any number of times of the core monthly installment.
• Core Installments cannot be paid in advance.
• Flexi installment and the core installment can be paid on different dates in the same month.
• Amount deposited above core installments will be considered as Flexi installments for that month. However, such Flexi installments should be in multiples of core installment.
• Standing instructions are accepted only for the core installments.
• You need to fix the core installment at the time of opening the RD A/c. It cannot vary subsequently.
• Only one maturity date for both core and flexi portions.
• Only core installments can be allotted standing instructions and not for Flexi installments.
• No Flexi installment would be accepted in the last month of the RD account.
• Flexi RD Accounts will not get passbooks. System-generated statements will be issued to the customers.
• Auto-renewal of the maturity proceeds permitted is not allowed.
• The proceeds of the account will be credited to savings bank account if no other instructions are given.
• In case there are any core installments in arrears, any extra amount deposited by the customer, would first go to adjust the defaulted core installments.
• No adjustment of previously paid flexi installments towards future core installments.

Premature Withdrawal

• In the case of premature closure of a Flexi RD account, no interest would be payable on the core and Flexi installments, if the account is closed within 3 months of opening the same.
• If the account is closed after 3 months, but before maturity, normal penalty rules for premature closure would apply.

How to Open an RD Account in Bank of India

You can open a recurring deposit account with Bank of India in two ways:

• By visiting the branch
• Through net banking

If you are an existing Bank of India account holder, use your net banking username and password to log in to your online account and open an e-RD right away. If you are not a Bank of India account holder, you will have to open an account first. After your account is active, you can log in to net banking and open an e-RD.

Bank of India RD Calculator

You can try out online RD calculators to calculate the interest on your RD. There are many websites that offer recurring deposit calculators. The process is simple and hassle-free. All you need to do is enter all the details pertaining to your RD account, including the amount, tenure, and rate of interest.

Put your money in RD schemes offered Bank of India and enjoy competitive rates. However, to enjoy better returns, look for other investment vehicles like mutual funds, fixed deposits, stocks, and bonds, among others.