State-owned Bank of India (BOI) has announced an increase in interest rates for specific medium and long-term domestic fixed deposits (FDs) valued under ₹3 crore. The revised interest rates are officially effective starting Monday, May 18, 2026.
The adjustment offers a timely avenue for retail investors looking to lock in steady, guaranteed returns on their savings amid ongoing market fluctuations.
New Interest Rates for General Depositors
The public sector lender has structured the hikes to reward depositors across various multi-year horizons:
-
1 Year to Less Than 2 Years: The interest rate has been scaled up to 6.5% per annum.
-
2 Years to Less Than 3 Years: Deposits in this mid-term tenure bucket will now earn 6.6% per annum.
-
3-Year Term Fixed Deposits: Long-term accounts locked in for exactly three years will fetch a peak rate of 6.7% per annum.
Higher Yields for Senior and Super Senior Citizens
Bank of India continues to offer premium interest slabs to protect the financial wellness of elderly savers. The premium varies depending on the chosen maturity length:
| Maturity Tenure | Senior Citizens (Ages 60–80) | Super Senior Citizens (Ages 80+) |
| 6 Months to Less Than 3 Years | Additional 50 bps (0.50%) over the base public rate | Additional 65 bps (0.65%) over the base public rate |
| 3 Years and Above | Additional 75 bps (0.75%) over the base public rate | Additional 90 bps (0.90%) over the base public rate |
Bonus Rates for High-Value, Non-Callable Deposits
To incentivize larger financial commitments, the bank introduced specialized rules for high-value retail portfolios.
Non-callable deposits—accounts where funds cannot be withdrawn before maturity—valued above ₹1 crore but under ₹3 crore will receive an extra 15 basis points (0.15%) over and above the newly applicable rates, provided they are opened for a minimum period of one year.
Important Note on Liquidity: Investors should plan carefully before locking in funds. The bank specified that routine facilities, such as taking a loan against a fixed deposit or opting for premature withdrawal, will be exclusively available for standard callable deposits.
Accounts under the revised structure can be opened seamlessly by existing and new customers through local physical branches, internet banking platforms, or the bank’s official mobile application.
