This Government Bank Delivers a Surprise: FD Rates Hiked—Here Is the Return You Will Earn on Small Investments Over One Year..

If you are looking to earn substantial returns by investing your money in a secure, risk-free avenue, there is excellent news for you. Bank of India (BOI), a major public sector bank, has announced an increase in its Fixed Deposit (FD) interest rates. This move by the bank presents a lucrative earning opportunity for the general public, and particularly for senior citizens.

**What Did Bank of India Announce?**
In recent times, the landscape for fixed deposit investors has been somewhat disappointing. The Reserve Bank of India (RBI) has implemented a significant cumulative reduction of 1.25% (125 basis points) in the repo rate since February 2025, bringing the rate down to 5.25%. Following this reduction, most public and private sector banks have consistently lowered the interest rates offered on FDs in an effort to safeguard their profit margins.

However, Bank of India has defied this prevailing trend, taking everyone by surprise. While other banks are lowering their interest rates, BOI has actually *increased* rates on specific medium- and long-term Fixed Deposits. The bank's new rates came into effect on May 18, 2026, and the benefits apply to deposits amounting to less than ₹3 crore.

**A Windfall for Senior and Super Senior Citizens**
As is customary, the bank has once again extended the greatest benefits to senior citizens. If you are a Senior Citizen (aged above 60) or a Super Senior Citizen (aged above 80), your potential earnings will be even higher:

**For FDs with a tenure of 6 months to 3 years:** Senior Citizens will receive an additional 0.50% (50 basis points) interest compared to the general public, while Super Senior Citizens will receive an additional 0.65%.

**For FDs with a tenure of 3 years or more:** For long-term deposits, this benefit becomes even more substantial. Senior Citizens will receive an extra 0.75% interest, and Super Senior Citizens will receive a full 0.90% in additional interest. Furthermore, if an individual opens a Fixed Deposit (FD) of over ₹1 crore—specifically a 'non-callable deposit' (one that cannot be withdrawn prematurely)—the bank is offering an additional return of 0.15% for a tenure of one year.

Who stands to benefit, and by how much?

FD Tenure | General Citizens | Senior Citizens (Aged 60–80) | Super Senior Citizens (Aged 80+)

1 Year to Less than 2 Years | 6.50% | 7.00% | 7.15%

2 Years to Less than 3 Years | 6.60% | 7.10% | 7.25%

On a 3-Year FD | 6.70% | 7.45% | 7.60%

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