For conservative investors seeking predictable returns, a recurring deposit (RD) is a straightforward way to accumulate savings. You deposit a fixed amount each month and earn interest at a guaranteed rate until maturity.
Bank of India offers RD plans starting at just ₹500 per month, with tenures ranging from 6 months to 10 years. As of 2026, interest rates go up to 7.05% for general customers and 7.55% for senior citizens.
Key details at a glance:
| Feature | Details |
|---|---|
| Minimum Monthly Deposit | ₹500 |
| Tenure | 6 months to 10 years |
| Interest Rates (General) | Up to 7.05% |
| Interest Rates (Senior) | Up to 7.55% |
| Returns | Fixed and guaranteed |
| Loan/OD Facility | Available against RD |
| Special Scheme | Star Flexi RD (flexible deposits) |
Note: Bank of India may revise interest rates, terms and conditions at any time. Check with the bank or its official channels for the latest information before investing.
One flexible option is the Star Flexi RD. With this plan you maintain a minimum monthly deposit but can add extra amounts whenever you wish. All deposits earn interest and mature together, giving you flexibility while maintaining disciplined savings.
Below are the latest interest highlights and the main features of the Star Flexi RD.
Bank of India RD Interest Rates 2026
Bank of India’s RD rates align with fixed deposit slabs for deposits under ₹2 crore. Certain tenures offer higher rates; for example, the 444-day tenure may provide peak returns for senior citizens.
Types of Recurring Deposits Offered by Bank of India
Bank of India provides two primary RD variants that suit different saving styles:
- Recurring Term Deposit: A fixed monthly amount is deposited regularly. At maturity you receive the accumulated principal plus interest. This option is simple and predictable.
- Star Flexi Recurring Deposit: You commit to a minimum monthly deposit but can increase contributions in any month. This is ideal for people with variable income, bonuses, or those who want extra flexibility.
Why Choose Bank of India RD?
Common reasons customers choose a Bank of India RD:
- Low entry: Start with just ₹500 per month.
- Flexible tenure: Options from 6 months to 10 years.
- Assured returns: Interest rate is fixed for the chosen tenure.
- Loan option: You can borrow against your RD balance if needed.
- Extra for seniors: Senior citizens receive a 0.50% rate boost.
- No market risk: Returns are guaranteed, unlike market-linked investments.
Things to Know Before Opening a Bank of India RD
- RD interest is compounded quarterly and paid at maturity.
- If the RD is closed within 3 months, no interest is paid. Premature closure after that may attract a penalty.
- TDS is applicable if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Eligible customers can submit Form 15G or 15H to avoid TDS.
- Certain special tenures may carry the best rates, so compare tenures before booking.
How to Open an RD Account in Bank of India Online?
Opening a Bank of India RD online is quick via internet banking or the BOI mobile app. Typical steps:
- Visit BOI Net Banking/App – Access the Bank of India website or mobile banking app.
- Log in securely – Enter credentials and complete OTP authentication.
- Go to Deposits Section – Choose ‘Recurring Deposit (RD)’ from the deposits/services menu.
- Enter RD details – Select the monthly amount, tenure and the linked savings account.
- Set auto-debit – Enable automatic monthly deductions from your account.
- Confirm & submit – Review and submit your request.
- Instant confirmation – The RD is created and confirmation is sent by SMS or email.
How to Open an RD Account in Bank of India Offline?
To open an RD at a branch, follow these steps:
- Visit the nearest BOI branch – Go to a convenient Bank of India branch.
- Collect the RD form – Request the Recurring Deposit account opening form.
- Fill required details – Provide deposit amount, tenure, nominee and account information.
- Submit KYC documents – Provide identity and address proofs and photographs if required.
- Deposit first installment – Pay the initial monthly amount by cash or cheque.
- Account setup – The bank verifies details and opens your RD account.
- Receive RD passbook/details – You will get confirmation and the deposit schedule.
How to Calculate RD Interest for Bank of India
An RD involves monthly deposits with interest applied to each installment for the duration it remains in the account. Interest rates and duration determine the final return.
In practical terms:
- The earlier a monthly deposit is made, the longer it earns interest.
- The final interest is a sum of interest earned on each monthly installment.
Example: If you deposit ₹1,000 per month for 12 months at 7% annual interest, the total principal is ₹12,000 and interest will typically be in the range of ₹455–₹500 depending on compounding, giving a rough maturity amount near ₹12,480.
Eligibility for Bank of India RD Account
- Individuals (residents and non-residents as per bank norms)
- Minors (with a parent or guardian)
- Sole proprietors, partnership firms and limited companies
- Hindu Undivided Families (HUFs)
- Trusts, societies, clubs and associations
- Government bodies or organizations (subject to bank approval)
Documents Required for Bank of India RD Account
- Duly filled RD account opening form
- Proof of identity (Aadhaar, PAN, passport, voter ID, driving licence, etc.)
- Proof of address if not included in ID proof (utility bills, rent agreement, passport, Aadhaar)
- Recent passport-sized photographs
- PAN card (mandatory) or Form 60 if PAN is not available
- Bank account details if linking the RD to an existing BOI savings account
FAQs on Bank of India RD Interest Rates 2026
Is there a penalty for missing an RD instalment?
Yes. Bank of India charges a penalty for missed instalments. For RDs with tenure up to 5 years, the penalty is ₹1.50 per ₹100 per month of delay. For tenures above 5 years, it is ₹2 per ₹100 per month.
What happens if I close my RD before maturity?
If closed within 3 months, no interest is paid. For closures after 3 months, premature withdrawal rules apply and a penalty may reduce the applicable rate.
Can I take a loan against my RD?
Yes. Bank of India allows loans or overdrafts against RD balances, including under the Star Flexi RD scheme.
How often is interest paid on BOI RD?
Interest on a Bank of India RD is compounded quarterly and paid at maturity along with the principal.