Bank of India FD – Tenure 666 Days, Interest 7.9% | Comprehensive Guide

Bank of India FD

Investors today have a plethora of investment options to choose from, including the stock market, mutual funds, bank fixed deposits (FDs), and post office deposits. Among these, fixed deposits stand out as a highly popular choice due to their security and guaranteed returns. They offer a range of tenures, from as short as seven days to as long as ten years, making them versatile for various financial planning needs.

Bank of India (BOI), one of India’s leading banks, has recently introduced a new fixed deposit scheme. This essay delves into the features and benefits of this scheme, along with other fixed deposit offerings from Bank of India, providing a comprehensive understanding of why FDs remain a favored investment option.

Bank of India FD Scheme: 666 Days Tenure

On May 31, Bank of India announced a new fixed deposit scheme with a unique tenure of 666 days. This scheme allows investors to deposit amounts up to Rs. 2 crores. Here are the key details:

Interest Rates

  • Common Citizens: The bank offers an attractive interest rate of 7.3% per annum.
  • Senior Citizens: For individuals aged 60 and above, the interest rate is higher at 7.8% per annum.
  • Super Senior Citizens: Citizens aged above 80 years receive the highest interest rate of 7.95% per annum.

This tiered interest rate structure ensures that all age groups benefit, with the highest rates reserved for the most senior citizens, recognizing their need for higher income stability.

Also Read… ICICI FD – A Comprehensive Guide to Secure Investments 2024

Loan Against FD

Investors in the 666-day fixed deposit scheme have the option to avail of loans against their deposits, subject to certain conditions. This feature provides liquidity without the need to break the fixed deposit prematurely. However, if required, the fixed deposit can be withdrawn early, although this might involve some penalties.

How to Open an FD

Opening a fixed deposit with Bank of India is straightforward. Interested customers can visit any BOI branch or utilize digital platforms such as the Omni Neo app or internet banking. This convenience ensures that both tech-savvy and traditional investors can easily manage their investments.

Bank of India FD Schemes (others)

Bank of India offers a variety of fixed deposit schemes catering to different investment horizons and financial goals. Here’s a detailed look at these options:


Start Your Fixed Deposit : Visit Bank of India Official Website


Short-Term Investments

For those looking for short-term investment opportunities, Bank of India FD with tenures ranging from 7 days to 12 months. The interest rates for these deposits range from 2.85% to 4.35% per annum, providing flexibility for investors with shorter financial goals or those seeking to park their surplus funds temporarily.

Medium-Term Investments

Medium-term bank of india FD are for tenures exceeding one year but less than 5 years. The interest rates for these deposits vary between 5.60% and 6.00% per annum. These deposits are ideal for individuals planning for medium-term financial objectives such as purchasing a vehicle, planning a vacation, or saving for higher education.

Long-Term Investments

For long-term investors, BOI offers fixed deposits with tenures ranging from 5 to 10 years. These deposits come with an interest rate of 5.75% per annum. Additionally, senior citizens benefit from an extra 0.50% interest on all long-term deposits, making these FDs a lucrative option for retirement planning and long-term wealth accumulation.

Bank of India FD Schemes: Star Sunidhi Tax Saving Deposit Scheme (Special)

One notable scheme offered by Bank of India is the Star Sunidhi Tax Saving Deposit Scheme. This scheme is designed to provide dual benefits: attractive returns and tax savings.

Key Features

  • Tax Benefits: Investments in this scheme are eligible for deductions under Section 80C of the Income Tax Act, 1961. This means that investors can reduce their taxable income by up to Rs. 1.5 lakh per financial year, thereby saving on taxes.
  • Tenure: The scheme requires a minimum investment tenure of five years, extendable up to ten years. This ensures that the funds are locked in for a significant period, fostering disciplined long-term savings.
  • Minimum Investment: The minimum investment amount is Rs. 10,000, making it accessible for a broad range of investors.

This scheme is particularly beneficial for individuals looking to maximize their tax savings while earning a stable return on their investment.

Why Choose Bank of India FD?

Fixed deposits have been a preferred investment choice for several reasons:

  1. Security: FDs are considered one of the safest investment options as they offer guaranteed returns irrespective of market conditions. The principal amount is protected, and the interest rates are fixed at the time of investment.
  2. Assured Returns: Unlike stocks or mutual funds, the returns on fixed deposits are predetermined, providing a clear picture of the earnings at the end of the tenure. This predictability is highly valued by risk-averse investors.
  3. Liquidity: Despite being long-term investments, fixed deposits offer liquidity options. Investors can opt for a loan against their FD or prematurely withdraw the deposit (subject to penalties), ensuring access to funds in case of emergencies.
  4. Flexible Tenures: Fixed deposits come with flexible tenure options ranging from a few days to several years, allowing investors to choose a period that aligns with their financial goals.
  5. Tax Benefits: Certain fixed deposit schemes, like the Star Sunidhi Tax Saving Deposit Scheme, provide tax benefits under Section 80C, making them a tax-efficient investment choice.
  6. Senior Citizen Benefits: Many banks, including Bank of India, offer higher interest rates for senior citizens, providing them with an additional income stream to support their retirement years.

Also Read… What is Mediclaim Insurance?

How to Maximize Returns from Fixed Deposits

To make the most out of fixed deposit investments, consider the following strategies:

  1. Stagger Investments: Instead of investing a lump sum in a single FD, consider laddering your investments. This involves dividing the total amount into multiple FDs with different maturities. This strategy helps in managing liquidity needs and taking advantage of changing interest rates.
  2. Reinvest Interest: Opt for cumulative fixed deposits where the interest is compounded and reinvested, rather than being paid out periodically. This can significantly increase the maturity amount due to the power of compounding.
  3. Monitor Interest Rates: Keep an eye on interest rate trends. Investing in FDs when interest rates are high can lock in better returns for the chosen tenure.
  4. Utilize Tax-Saving Options: Make use of tax-saving fixed deposits to maximize your Section 80C benefits. This not only provides assured returns but also helps in tax planning.
  5. Leverage Digital Platforms: Use digital banking platforms for ease of management. Online FD opening, renewal, and management can save time and provide access to better rates and exclusive offers.


Bank of India FD schemes offer a reliable and secure investment avenue for individuals across different age groups and financial backgrounds. With flexible tenures, attractive interest rates, and special schemes like the 666-day FD and Star Sunidhi Tax Saving Deposit Scheme, BOI caters to a wide range of investment needs. Whether you are a risk-averse investor looking for assured returns, a senior citizen seeking higher interest income, or a tax-savvy individual aiming to reduce taxable income, Bank of India’s fixed deposit options can be a valuable addition to your investment portfolio. By understanding the various features and benefits, and implementing smart investment strategies, you can effectively use fixed deposits to achieve your financial goals and ensure a stable financial future.

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