Bank of India Star Monthly Income Fixed Deposit

How the BOI Star Monthly Income Deposit Works

The BOI Star Monthly Income FD is a non-cumulative term deposit that acts as a reliable monthly cash-flow generator. The interest earned on the principal investment, based on current BOI FD interest rates, is credited directly to your bank account every month, providing supplementary liquidity for day-to-day living expenses, medical needs, or household bills. 

The minimum deposit for BOI Monthly Deposit or Star Monthly Income Fixed Deposit is Rs 10,000 in metro and urban branches. This makes it a practical choice for retirees and anyone who prefers a steady, predictable income over lump sum returns at maturity.

BOI Monthly Deposit - Amount to be Invested

Bank of India sets accessible entry limits tailored to the depositor's location and category:

Exemption: Minimum deposit restrictions do not apply to government-sponsored welfare subsidies, margin money, earnest money deposits, or court-ordered funds.

Interest Payout Rules

• Monthly Payout: Paid at a monthly discounted value
• Quarterly Payout: Paid at actual Bank of India rates; in this case, the account is treated like a standard Fixed Deposit with a "Quarterly Payout" endorsement.
• TDS: All interest payments are subject to applicable Tax Deducted at Source.

Tenure and Maturity

• Maximum Period: Deposits are accepted for a maximum of 10 years.
• Reinvestment: Monthly interest can be credited to your Current or BOI Savings account, that are automatically moved into a Recurring Deposit (RD).

BOI Monthly Deposit Eligibility Criteria

Under BOI Monthly Deposit, the accounts may be opened in the names of: 

• Individual — Single Accounts
• Two or more individuals — Joint Accounts
• Sole Proprietorship Concerns
• Partnership Firms
• Illiterate Persons
•  Blind Persons
•  Minors
•  Limited Companies
•  Associations, Clubs, Societies, etc.
•  Trusts
•  Joint Hindu Families (accounts of non-trading nature only)
•  Municipalities
•  Government and Quasi-Government Bodies
•  Panchayats
•  Religious Institutions
•  Educational Institutions (including Universities)
•  Charitable Institutions

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Key Benefits of BOI Monthly Deposit 

1. Loan / Overdraft Facility: 

   You can borrow up to 90–95% against the Star Monthly Income Deposit at lower interest rates without breaking your FD.

2. Premature Withdrawal: 

   BOI premature closure is allowed, subject to the standard Bank of India premature penalty norms.

3. Nomination Facility: 

   A nomination feature is available at account creation to ensure a smooth transfer of funds to a legal heir or nominee.

Conclusion

The BOI Star Monthly Income Deposit Scheme works differently from a standard FD, where your money stays locked until maturity. Here, you get a steady monthly payout, making it a low-risk option for regular income. It works well alongside other Bank of India Special FD Schemes, where the Monthly Income variant covers your everyday expenses, while special tenure options like the 450-day Star Swarnim or the 777-day Star Utsav offer higher returns for funds you can set aside for a fixed period. T