BOI Shuts 400 Day Special FD Scheme, Cuts FD Interest Rates After Repo Rate Cut; Other Banks Follow Suit

Bank of India (BOI) has announced a key update for its fixed deposit (FD) customers in which the bank has withdrawn its special 400-day fixed deposit scheme that offered an attractive interest rate of up to 7.30%. Alongside this, Bank of India has revised interest rates across various FD tenures. These new rates will be effective from April 15, 2025.

The Reserve Bank of India, in its recent monetary policy update, announced a reduction of its repo rate of 25 bps to 6%. This decision has led many banks to trim their FD rates, and the Bank of India is just following the trend.

Bank of India new FD interest rates

For fixed deposits less than Rs. 3 crore, the updated Bank of India FD interest rates are as follows:

91 days to 179 days: 4.25%
180 days to less than 1 year: 5.75%
1 year: 7.05%
Above 1 year to 2 years: 6.75%

Revised FD Rates for Deposits Between Rs. 3 Crore and Rs. 10 Crore

For higher-value For fixed deposits between Rs. 3 crore and less than Rs. 10 crore, the new FD rates are as follows

91 days to 179 days: 5.75%
180 days to 210 days: 6.25%
211 days to less than 1 year: 6.50%
1 year: 7.05%
Above 1 year to less than 2 years: 6.70%

The rates remain competitive, especially for bulk deposits, though slightly lower than previous offerings. This aligns with other public sector banks following the RBI repo rate cut in early April 2025.

Additional Interest for Senior and Super Senior Citizens

To cater to senior citizens, Bank of India continues to offer preferential interest rates

Senior Citizens (below ₹3 crore): Additional 0.50% interest on FDs of 6 months & above

Super Senior Citizens: An Additional 0.65% interest on the same tenure

These benefits make BOI fixed deposits for senior citizens a relatively attractive savings option despite the overall rate reduction.

Why Bank of India Revised FD Rates?

The interest rate changes follow the recent repo rate cut announced by the Reserve Bank of India (RBI) during its April 2025 Monetary Policy Committee (MPC) meeting. As policy rates go down, banks typically adjust their lending and deposit rates, impacting both loan EMIs and fixed deposit returns.

Many Other Banks Cut FD Interest Rates After RBI's Rate Cut

After the recent RBI repo rate cut, several banks across India have lowered their fixed deposit (FD) interest rates for deposits below Rs. 3 crore.

Recently, Kotak Mahindra Bank revised its FD rates in line with the trend. The bank now offers FD interest rates which range from 2.75% to 7.30% for general customers and 3.25% to 7.80% for senior citizens. Previously, the rates ranged between 2.75% and 7.40% for regular account holders and 3.25% and 7.90% for senior citizens. These changes apply to deposits under ₹3 crore and are applicable for tenures starting from 7 days up to 10 years.

Similarly, Canara Bank reduced its FD rate by 20 bps on certain tenures. The bank now offers 7.25% interest on its popular 444-day fixed deposit, with an extra 0.50% for senior citizens (for deposits below ₹3 crore). The new FD rates are effective from 10 April.

Punjab National Bank (PNB) now offers 3.50% to 7.10% interest for FDs ranging from 7 days to 10 years. Senior citizens get 50 bps extra for deposits up to 5 years and 80 bps extra for longer tenures. Super senior citizens (80+ years) receive an 80 bps bonus across all tenures.