Bank of India Fixed Deposit

On September 7, 1906, a group of eminent businessmen from Mumbai with a paid-up capital of ₹50 lakhs and 50 employees founded the Bank of India. The Bank was under private ownership and control till July 1969, when it was nationalised along with 13 other Banks. Today it has over 5100+ branches in India across all states and Union Territories, including specialised branches

• Star Monthly Income Fixed Deposit
• Star Quarterly Income Fixed Deposit
• Star Double Benefit Term Deposit
• Star Sunidhi Tax Saving Deposit Scheme
• Fixed/Short-Term Deposit
• Current Deposits Plus Scheme

The following are the benefits of investing in Fixed Deposits offered by the Bank of India:

• Flexibility to choose interest payout frequency, i.e. monthly, quarterly also, it can be renewed at the end of the maturity
• The bank allows premature withdrawal of deposits subject to penalty.
• In case the depositor does not want to prematurely withdraw a fixed deposit, then they can also consider taking a loan/overdraft against fixed deposits as an alternative funding option.
• Deposit Insurance and Credit Guarantee Corporation (DICGC) grants insurance coverage for fixed deposits. The maximum amount of insurance coverage is ₹5 lakhs.
• Depositors can invest in Star Sunidhi Tax Saving Scheme and claim deductions up to ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. However, there is a lock-in period of 5 years in this scheme
• One can easily make a fixed deposit by using Internet banking
• Bank of India also launched door-step banking in which they offer the delivery facility of term deposit advice.
• They offer additional interest to senior citizens, which is 0.5% higher than normal rates for a specified tenure.

Features of Star Monthly Income Fixed Deposit Scheme

• The minimum investment amount is ₹10,000 in metro and urban branches and ₹5,000 in rural and ₹5,000 in semi-urban branches for senior citizens.
• The maximum tenure for deposit under this scheme is 10 years.
• Payment of interest can be made monthly or quarterly
• Monthly interest payments will be made at a discounted rate

Features of Star Quarterly Income Fixed Deposit

• The minimum investment amount is ₹10,000 in metro and urban branches and ₹5,000 in rural and ₹5,000 in semi-urban branches for senior citizens.
• Payment of interest is on a monthly or quarterly basis, as desired by the depositor.
• Depositors may receive interest every month at a monthly discounted value
• The maximum tenure for deposit under this scheme is 10 years.

Features of Star Double Benefit Term Deposit

• FD tenure varies from 6 months to 10 years.
• The minimum investment amount is ₹10,000 in metro and urban branches and ₹5,000 in rural and ₹5,000 in semi-urban branches for senior citizens
• It provides a higher yield on principal as the interest is compounded on a quarterly basis.
• Repayment of term deposits before maturity is permissible in terms of the directives of the Reserve Bank of India issued from time to time

Features of Star Sunidhi Tax Saving Deposit Scheme

• Only individuals and HUFs having PAN are eligible to deposit in this scheme.
• The depositor is entitled to claim tax benefits of up to ₹1.5 lakhs in a given financial year under section 80C of the Income Tax Act of 1961.
• The minimum amount of deposit in this scheme is ₹10,000, and the maximum amount acceptable under this scheme is ₹1.5 lakhs per annum.
• The minimum duration of the deposit is 5 years, and the maximum is 10 years.
• Premature withdrawal is not permissible
• The depositor cannot avail loan against the amount of the deposit.
• Senior citizens will get 0.5% extra interest on deposits.

Features of Fixed/Short Term Deposit

• The deposits are repayable within 6 months.
• In case the terminal month is incomplete, interest will be paid for the actual number of days on the basis of 365 days in a year.
• The depositor is required to open a savings bank account where the interest from the fixed deposit will be credited
• Premature withdrawal of deposit is permissible with applicable penalty.

Features of Current Deposits Plus Scheme

• It is a deposit product which combines current and short deposit accounts. It has facilities of sweep in and sweeps out to take care of withdrawals.
• The depositor needs to maintain a minimum average quarterly balance of ₹5 lakhs in the current deposit account and ₹1 lakh in the short deposit account.
• There is a penalty of ₹1,000 per quarter if the average quarterly balance falls short of the minimum average quarterly balance
• Amount in excess of ₹5 lakhs in the current deposit account will be transferred to a short-term deposit account in multiples of ₹1 lac. The deposit is to be made for a minimum tenure of 7 days and maximum tenure of 90 days. Sweeping out from the current deposit account to the short-term deposit account will be on the 1st and 16th of every month.
• In case there is an urgent need for funds in the current deposit account, funds in the multiple of ₹1 lakh will be swept in from a short-term deposit account in the multiples of ₹1 lakh on Last In First Out (LIFO) basis subject to the availability of the funds. Payment before maturity is allowed without any penalty in order to meet the shortage of funds subject to the availability of funds.
• Interest will be paid on the short deposit component only, as per the maturity period.
• An automatic renewal facility is available for the original tenure and amount of deposit.

• Any person in his individual capacity or more than one person in their joint name, any minor jointly with a guardian, can open a deposit with the Bank of India.
• Sole proprietary concerns
• Partnership firms,
• Limited companies
• Associations, clubs, societies, etc.
• Trusts,
• Joint Hindu families (accounts of non-trading nature only)
• Municipalities,
• Government and Quasi-Government Bodies
• Religious institutions
• Panchayats
• Educational institutions (including Universities)
• Charitable institutions are eligible to make deposits with the Bank of India

Know Your Customer (KYC) norms are mandatory for bank fixed deposits. The following documents are required to comply with KYC norms

• Proof of identity:  PAN Card, Driving Licence, Passport, Voter ID card, Aadhaar Card, Government/Defence ID card.
• Proof of residence: Aadhaar Card, Electricity Bill, Telephone Bill, Ration Card, Bank Account Statement, Letter from statutory authority/local body, Income Tax Order
• Proof of date of birth:  Since higher interest rates are offered to senior citizens, a document stating the date of birth like a Passport, Voter ID card, Driving Licence, PAN Card, Aadhaar Card, Service Discharge Certificate, or PPO in case of a pensioner are submitted.
• In case of minors: Birth certificate issued by Gram Panchayat/ Notified Area Committee/Municipal Corporation.
• Recent passport-size photograph of the depositor.

For a depositor who is an existing account holder of the bank (having Savings or current account) fixed deposit can be opened using the following procedure:

By Logging into the Internet Banking

Step 1: Visit the Bank of India website and navigate to the “Personal Login” tab. Provide username and password to log in.
Step2: Go to the “Fixed Deposit Tab”
Step 3: Enter all the details.
Step 4: Verify details and click confirm.
Step 5: A confirmation message will be displayed on the screen

By using a Mobile App

Step 1: Download the Bank of India Mobile App and log in using your credentials.
Step 2: Select the 'Open FD' option from the app's main menu.
Step 3: Choose the type of deposit account you want to open based on your preferences and requirements.
Step 4: Provide all the necessary details, including your personal information, nominee details, and payment and maturity instructions.
Step 5: After you have verified all the details, click on the 'Confirm' button to complete the transaction.
Step 6: Once the transaction is successfully completed, you should receive a confirmation message on the screen indicating that your FD account has been opened.

Offline Mode

Step 1: Visit the nearest branch office of the Bank of India.
Step 2: Ask for a Fixed Deposit Application Form and fill in all the details.
Step 3: Submit all the documentary proofs. 
Step 4: Deposit the money.
Step 5: Collect the Fixed Deposit Receipt

To close your Bank of India FD account prematurely, follow the mentioned steps:

• Walk into your local Bank of India branch.
• Inform a bank official of your decision to terminate the FD prematurely.
• They will furnish you with an early termination form. Ensure all details are correctly filled.
• Complete your KYC
• Submit the FD certificate and a piece of identification
• After the bank validates and processes your application, the principal and accrued interest (after any deductions) will be deposited into your account.

• Bank of India allows premature withdrawal of all FDs. For deposits below ₹5 lakhs, a penalty of 0.5% is charged for premature withdrawal before completion of 12 months.
• No penalty is charged for any withdrawals after the completion of 12 months. For deposits above ₹5 lakhs, a penalty of 0.5% is charged for premature withdrawal, irrespective of the completion of 12 months' tenure.