Bank of India has updated the interest rates on fixed deposits for senior citizens, as part of their “Shubh Arambh Deposit” scheme.
This scheme provides an additional 0.50% interest on fixed deposits of different tenures for senior citizens and an additional 0.65% interest for super senior citizens aged 80 and above.
Effective from April 1, 2023, the Shubh Arambh Deposit now offers an interest rate of 7.80% for 501-day fixed deposits for super senior citizens and 7.65% for senior citizens.
In addition, the bank has made changes to the interest rates for various tenures between 7 days and 10 years, applicable to both senior citizens and regular customers.
The revised interest rates now provide up to 7.40% interest for super senior citizens and up to 6.75% interest for regular customers on fixed deposits with terms ranging from 7 days to 10 years.
These updated interest rates are applicable to domestic, NRO, and NRE deposits.
Moreover, for fixed deposits with a tenure of three years or more, senior citizens are eligible for an extra interest rate of 0.75% above the normal rate of interest, while super senior citizens can avail an additional interest rate of 0.90%.
Banks have been raising the interest rates on fixed deposits in response to the repo rate hikes by the Reserve Bank of India (RBI) over the past year.
This has made fixed deposits an appealing investment for many. Since May 2022, the RBI has increased the repo rate by 250 basis points to address the growing credit demand as liquidity tightens.
Banks have also raised the interest rates on fixed deposits, albeit at a slower pace.
Bank of India’s fixed deposit schemes offer a significant advantage in terms of flexibility, allowing for savings management without any additional charges or penalties on renewals for extended periods.
Moreover, customers can avail loans against their term deposit for up to 90% of the outstanding amount.
Individuals below the age of 60 can earn up to 7.15% interest on their deposits.
