State-owned Bank of India has significantly increased interest rates on select medium and long-term fixed deposits of less than ₹3 crore, with the revised rates taking effect from May 18, 2026. According to reports from Business Standard, the bank has raised the interest rate on deposits with maturity between one year and less than two years to 6.50 per cent per annum. Deposits with tenure between two years and less than three years will now earn 6.60 per cent, while three-year fixed deposits will fetch 6.70 per cent. However, the bank has now enhanced rates further for super senior citizens, with three-year deposits earning up to 7.60 per cent per annum for this category. In Mumbai's financial market, these enhanced rates are particularly attractive, with the city offering fixed deposit options ranging from 7.60% to 8.30% across various banks and NBFCs.
Senior citizens will continue to receive an additional 50 basis points on deposits with maturity between six months and less than three years, while super senior citizens will get an additional 65 basis points for the same tenure bucket. For fixed deposits with maturity of three years and above, senior citizens will receive an additional 75 basis points over the applicable rate, while super senior citizens will get an additional 90 basis points. As reported by Business Standard, these enhanced rates apply specifically to deposits under ₹3 crore across all tenure categories, with the latest revision making Bank of India's 2-3 year deposits particularly competitive for senior citizens. In Mumbai's financial capital, fixed deposits remain popular among professionals, entrepreneurs, families, and retirees who prioritize security, regular income, and stability over set periods.
For NRI deposits, Bank of India offers competitive rates across different account types. NRE accounts offer 6.50% per annum for deposits above ₹1 crore but less than ₹3 crore for tenure between one year to less than two years. NRE accounts also provide 6.60% per annum for deposits above ₹3 crore but less than ₹10 crore for the same tenure. NRE accounts with tenure of two years to less than three years offer 6.75% per annum for deposits above ₹1 crore but less than ₹3 crore, and 6.99% per annum for deposits above ₹3 crore but less than ₹10 crore. NRE accounts with tenure of above 3 years to less than 5 years provide 6.25% per annum for deposits above ₹1 crore but less than ₹3 crore, and 6.82% per annum for deposits above ₹3 crore but less than ₹10 crore.
The lender has introduced additional benefits for specific deposit types, including non-callable deposits above ₹1 crore with a minimum tenure of one year will earn an additional 15 basis points over the applicable rate. According to Business Standard, loan against fixed deposits and premature withdrawal facilities will only be available for callable deposits. Customers can open fixed deposits through branches, internet banking, and the bank's mobile application. The enhanced rates are particularly attractive for retirees seeking stable monthly/quarterly income, conservative investors, and those planning to park funds for 1-3 years. In Mumbai's competitive market, these features make fixed deposits an ideal solution for those prioritizing security, emergency savings, or steady growth with low-risk investment options.
With RBI's repo rate stance and softening inflation, several banks are selectively hiking FD rates to attract longer-term deposits. Bank of India's latest revision makes its 2-3 year deposits quite competitive, especially for senior citizens who can now earn up to 7.60% on longer tenures. In Mumbai's financial capital, the city offers variety of fixed deposit options from banks and NBFCs with attractive returns ranging from 7.60% to 8.30%. Retail depositors are advised to compare rates across banks before booking, as small differences in rates can significantly impact returns on large deposits. The bank's enhanced rates particularly benefit conservative investors seeking safety with higher returns and those planning long-term deposits, offering a comprehensive package for Mumbai residents who aim to increase their wealth without risking their money.
