Bank of India (BOI) has increased the interest on Fixed Deposit (FD). With effect from January 10, 2023, the bank has increased the interest rates on 444 days Special Fixed Deposits of less than 2 crores. After this increase by Bank of India, senior citizens are being given an additional interest rate of 0.50% every year.
According to the bank's website, after this revision, the bank is paying 7.05% per annum interest rate on 444 days Special Fixed Deposit for its general customers. On the other hand, for senior citizens, the bank will pay an interest rate of 7.55% on its FD of 444 days and 7.25% per annum on FDs with a time period of less than 2 to 5 years.
Interest rates on other Fixed Deposits maturing in 7 days to 10 years for general customers range from 3% to 6.75%. The revised interest rates are applicable for Domestic, NRO and NRE deposits.
In the past days before BOI, many banks including PNB, BOB, ICICI, Yes Bank have increased the interest rates on FD. Let us tell you that last year the Reserve Bank of India (RBI) had increased the repo rate. The Reserve Bank started increasing the repo rate in May last year i.e. 2022.
Since then, till now RBI has increased the repo rate by 2.25%. Since then, banks have been continuously increasing the interest rates. Last year on December 7, the repo rate was increased by the RBI during the policy meeting. RBI had increased the repo rate by 0.35% at that time.