FD Calculator: Bank of India launches a special 500-day FD scheme; how much will you earn by investing ₹10 lakh?

Bank of India has launched a special fixed deposit (FD) scheme for a tenure of 500 days, called the 'BOI Akshay Fixed Deposit'. This scheme is available for a limited period. It can be availed for deposits of less than Rs 3 lakh crore. Let us look at the details of this scheme.

Higher interest for senior citizens and super senior citizens

Bank of India is a public sector bank. For general investors, the bank is offering an interest rate of 6.85% under this special FD scheme. For senior citizens—defined as individuals aged 60 to below 80 years—the bank is offering an interest rate of 7.35%. Super senior citizens—those aged 80 years and above—will receive an interest rate of 7.50% under this scheme.

What interest will those under 60 years of age receive?

Investing in this scheme can yield good returns. If an individual under the age of 60 invests in the 'BOI Akshay Fixed Deposit' scheme, they will earn an annual interest rate of 6.85%. For instance, if they deposit Rs 10 lakh, they will earn Rs 93,836 in interest. This means that after 500 days, their total amount will grow to Rs 10,93,836. Please note that the interest income will be subject to taxation.

What interest will those aged 60 years or above receive?

If a senior citizen—an individual aged between 60 and 79 years—deposits money in this scheme, they will earn an annual interest rate of 7.35%. If they invest Rs 10 lakh, they will earn Rs 1,00,685 in interest after 500 days. This means that upon the scheme's maturity, the amount will grow to Rs 11,00,685. This sum will be subject to taxation; interest earned on a fixed deposit (FD) falls under the tax net.

How much interest will a person aged 80 or above receive?

If a 'super senior citizen'—that is, an individual aged 80 or older—deposits this scheme, they will earn an annual interest rate of 7.5%. This is the highest interest rate offered by the scheme. At this rate, an investment of Rs 10 lakh will grow to Rs 11,02,740 over a period of 500 days. In other words, the investor will earn Rs 1,02,740 solely from interest over these 500 days. This amount will be subject to tax.

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