Bank of India has introduced the BOI Star Fixed Deposit offering extraordinary returns for deposits below ₹3 crore. Under the non-callable category, the bank is providing the highest rate of 7.75% for super senior citizens, 7.60% for senior citizens, and 6.85% for all other customers for deposits with maturities ranging from three years. This new product launch builds upon the bank's earlier rate revision effective from May 18, 2026, which had already enhanced rates to offer up to 7.60% for select tenures across deposits below ₹3 crore.
Senior citizens and super senior citizens continue to receive additional interest benefits over and above the applicable rates. Senior citizens will get an additional 0.50 per cent interest, while super senior citizens will receive an extra 0.65 per cent on deposits with maturities ranging from six months to less than three years. For fixed deposits with maturities of three years and above, senior citizens and super senior citizens will be eligible for an additional interest of 0.75 per cent and 0.90 per cent, respectively. The enhanced rates now offer up to 7.75% for select tenures across deposits below ₹3 crore, representing a significant increase from the previous rates.
Bank of India has introduced premium fixed deposit rates for senior citizens with enhanced returns across multiple tenures. According to the latest rate structure, senior citizens will earn up to 7.45% per annum on select tenures, with the highest rate of 7.10% for deposits with maturities between 2-3 years. The premium rates apply to deposits with maturities ranging from 270 days to less than 1 year (6.00%), above 1 year to less than 2 years (7.00%), 2 years to less than 3 years (7.10%), 5 years to less than 8 years (6.75%), and 8 years & above to up to 10 years (6.75%). These rates are effective from May 18, 2026.
The bank also announced that non-callable fixed deposits above ₹1 crore with a minimum tenure of one year will attract an additional 0.15 per cent interest per annum. However, loan against fixed deposits and premature withdrawal facilities will be available only for callable deposits. Customers can open fixed deposits through any Bank of India branch as well as via the BOI Omni Neo mobile application and internet banking platform. The new BOI Star FD is available for deposits up to ₹3 crore with specific tenure requirements, offering guaranteed returns alongside the enhanced interest rates.
This rate hike stands out as Bank of India goes against the broader market trend where most banks have steadily lowered fixed deposit rates after the Reserve Bank of India's cumulative 125 basis points repo rate cuts since February 2025. The move comes as the repo rate has been reduced to 5.25%, with many private lenders and public sector banks trimming deposit rates to protect margins. According to market experts, FDs remain a popular choice for conservative investors despite the current rate environment, offering capital protection, predictable returns and flexible tenure options. However, experts emphasize that headline rates alone should not drive investment decisions, recommending that investors compare callable versus non-callable deposits, understand premature withdrawal penalties, and evaluate post-tax returns before making investment decisions.
