India’s state-owned Bank of India has increased interest rates on several fixed deposit (FD) schemes for retail customers, with revised rates taking effect from May 18, 2026. The move applies to deposits below ₹3 crore (approximately $360,000) and is aimed at attracting medium- and long-term deposits amid changing interest rate conditions in India.
The revised structure especially benefits senior and super senior citizens, who can now earn returns as high as 7.60% annually on select deposit schemes.
Revised Fixed Deposit Interest Rates
Under the updated structure, interest rates for deposits ranging from one to three years have been increased across customer categories.
New FD Rates for Deposits Below ₹3 Crore
Tenure General Public Senior Citizens Super Senior Citizens 1 Year to Less Than 2 Years 6.50% 7.00% 7.15% 2 Years to Less Than 3 Years 6.60% 7.10% 7.25% 3 Years 6.70% 7.20% 7.35%
The bank also stated that super senior citizens can earn up to 7.60% annually on longer-tenure deposits under applicable bonus structures.
Extra Benefits for Elderly Depositors
Bank of India announced additional interest incentives for older customers:
- Senior citizens will receive an extra 0.75% per annum above standard card rates on deposits of three years and above.
- Super senior citizens will receive an additional 0.90% per annum on similar deposits.
- These enhanced benefits apply to deposit tenures from six months to less than three years under the revised policy.
The bank defines super senior citizens as customers above a specified age category, generally 80 years and older.
Higher Returns on Non-Callable Deposits
Customers choosing non-callable fixed deposits — meaning deposits that cannot be withdrawn before maturity — can earn an additional 0.15% annual interest.
This benefit applies to:
- Deposits above ₹1 crore
- Minimum tenure of one year
However, the bank clarified that:
- Loans against fixed deposits
- Premature withdrawal facilities
are available only for callable deposit schemes.
Digital and Branch Banking Options
Customers can open fixed deposits through:
- Any Bank of India branch
- The BOI Omni Neo mobile application
- Internet banking services
The bank has been expanding its digital banking infrastructure as more Indian consumers shift toward online financial services.
Why the Rate Hike Matters
India’s banking sector has seen increased competition for deposits as lenders respond to changing monetary policy conditions and evolving liquidity needs.
Although inflation has moderated in recent months, banks are selectively offering higher deposit rates to secure longer-term retail funds. Analysts say the latest revision by Bank of India makes its 2–3 year deposit products more competitive compared to several other public sector lenders.
The revised rates may particularly appeal to:
- Retirees seeking predictable income
- Conservative investors prioritizing capital safety
- Households parking funds for medium-term financial goals
Financial experts continue to advise depositors to compare interest rates, liquidity conditions, and tax implications across multiple banks before investing in fixed deposits.
