Bank of India FD Rates 2019 Calculator
Comprehensive Guide to Bank of India FD Rates 2019
The Bank of India (BOI) fixed deposit (FD) schemes in 2019 offered competitive interest rates with various tenure options to suit different financial goals. This guide provides a detailed analysis of BOI’s FD rates for 2019, helping you understand how to maximize your returns while ensuring capital safety.
Key Features of Bank of India FDs in 2019
- Tenure Flexibility: Ranging from 7 days to 10 years
- Minimum Deposit: ₹10,000 (₹1,000 for rural/semi-urban branches)
- Senior Citizen Benefit: Additional 0.5% interest rate
- Loan Facility: Up to 90% of deposit amount
- Premature Withdrawal: Allowed with penalty
- Auto-Renewal: Available for all tenures
Bank of India FD Interest Rates 2019 (General Public)
| Tenure | Interest Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|
| 7 to 45 days | 5.50% | 6.00% |
| 46 to 90 days | 6.00% | 6.50% |
| 91 to 179 days | 6.25% | 6.75% |
| 180 days to less than 1 year | 6.50% | 7.00% |
| 1 year to less than 2 years | 6.75% | 7.25% |
| 2 years to less than 3 years | 6.85% | 7.35% |
| 3 years to less than 5 years | 6.85% | 7.35% |
| 5 years to 10 years | 6.50% | 7.00% |
Comparison with Other Major Banks (2019)
| Bank | 1 Year FD Rate | 3 Year FD Rate | 5 Year FD Rate | Senior Citizen Bonus |
|---|---|---|---|---|
| Bank of India | 6.75% | 6.85% | 6.50% | +0.50% |
| State Bank of India | 6.80% | 6.80% | 6.80% | +0.50% |
| Punjab National Bank | 6.70% | 6.75% | 6.30% | +0.50% |
| HDFC Bank | 7.00% | 7.00% | 6.75% | +0.50% |
| ICICI Bank | 6.90% | 6.90% | 6.75% | +0.50% |
How to Calculate FD Returns Manually
The formula for calculating fixed deposit maturity amount depends on whether the interest is compounded or simple:
For Simple Interest:
Maturity Amount = Principal × (1 + (Rate × Time)/100)
For Compound Interest (compounded quarterly):
Maturity Amount = Principal × (1 + Rate/(4×100))^(4×Time)
Where:
- Principal = Initial deposit amount
- Rate = Annual interest rate
- Time = Tenure in years
Tax Implications on Bank of India FDs (2019-20)
Under Section 80C of the Income Tax Act, tax-saving fixed deposits with a 5-year lock-in period were eligible for deductions up to ₹1.5 lakh. However, interest earned on all FDs was taxable as per the investor’s income tax slab. Banks deducted TDS at 10% if the interest earned exceeded ₹10,000 in a financial year (₹50,000 for senior citizens).
Premature Withdrawal Rules
Bank of India allowed premature withdrawal of fixed deposits subject to the following conditions:
- 1% penalty on the applicable interest rate
- Minimum lock-in period of 7 days
- No penalty for senior citizens on deposits up to ₹15 lakh
- Partial withdrawal allowed for deposits above ₹5 lakh
Special FD Schemes by Bank of India in 2019
- BOI Star Sunidhi Tax Saving Deposit: 5-year tax-saving FD with 6.5% interest (7% for senior citizens)
- BOI Star Flexi Deposit: Flexible FD with partial withdrawal options
- BOI Star Super Deposit: Higher rates for deposits above ₹1 crore
- BOI Star Recurring Deposit: Monthly investment option with FD-like returns
How to Open a Bank of India FD in 2019
Customers could open an FD through multiple channels:
- Online: Through BOI net banking or mobile app
- Branch Visit: By submitting FD application form with KYC documents
- Phone Banking: For existing customers
- Agent-Assisted: Through BOI’s authorized agents
Documents Required for Opening BOI FD
- PAN Card (mandatory for deposits above ₹50,000)
- Aadhaar Card (for KYC)
- Passport-size photographs
- Address proof (if not updated in bank records)
- Form 15G/15H (for TDS exemption, if applicable)
Tips to Maximize FD Returns
- Ladder Your Investments: Split your amount across different tenures to balance liquidity and returns
- Choose Cumulative Option: For higher effective yields through compounding
- Senior Citizen Advantage: Always opt for senior citizen rates if eligible
- Monitor Rate Changes: BOI revised rates quarterly – time your investments accordingly
- Consider Sweep-in FDs: Link your savings account to FD for better liquidity
- Reinvest Matured FDs: Avoid breaking FDs; reinvest for continued benefits
RBI Guidelines Affecting BOI FDs in 2019
The Reserve Bank of India (RBI) regulations in 2019 impacted fixed deposit operations:
- Mandatory linking of Aadhaar with bank accounts for deposits above ₹50,000
- Stricter KYC norms for high-value deposits
- Introduction of ombudsman scheme for digital transactions
- Directions on fair practices for premature withdrawal penalties
Frequently Asked Questions
What was the highest FD rate offered by Bank of India in 2019?
The highest rate was 6.85% p.a. for tenures between 2 to 5 years (7.35% for senior citizens).
Could NRIs open FDs with Bank of India in 2019?
Yes, BOI offered NRE (Non-Resident External) and NRO (Non-Resident Ordinary) fixed deposits with slightly different rate structures.
Was there a penalty for not renewing matured FDs?
BOI typically renewed FDs automatically at the prevailing rates if not withdrawn. The renewal was at the base rate if not specified otherwise.
How often did Bank of India change FD rates in 2019?
BOI reviewed and potentially revised FD rates quarterly, though actual changes depended on RBI’s monetary policy and market conditions.
Could joint account holders open FDs with different maturity instructions?
Yes, joint account FDs could have different maturity instructions (e.g., “Either or Survivor”, “Former or Survivor”, etc.).
Authoritative Sources
For official information on Bank of India’s FD schemes and regulations: