Bank of India has a strong presence in the Indian banking industry, with a legacy going back 114 years to 1906. It is a public sector bank operating out of its Mumbai headquarters with a network of over 5000 domestic branches and a pan-India presence. The bank boasts an overseas presence in 18 countries spread across five continents, serving a sizable NRI clientele. They operate in key international financial centres in Tokyo, Singapore, Hong Kong, London, Paris, and New York, complemented by foreign 52 offices.Read more
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With such a robust background, the Bank of India offers a plethora of financial products and services to cater to NRIs exclusive needs. A Fixed Deposit, in short, FD, is a prime product designed to satisfy the varied NRI preferences for higher yields on investment. Accordingly, it is essential to learn about Bank of India NRI FD Rates, which determines guaranteed returns laced with other related benefits and features.
RBI guidelines mandate banks to compulsorily display effective annualized yield on deposits of their entire maturity matrix. The following grid describes the indicative rate of return upon application of Bank of India NRI FD Rates under cumulative deposit scheme’s reinvestment plan, compounded quarterly.
Rates with effect from 1st August 2021:
|Tenure||Interest Rates (Per Annum)|
|1 Year & above but less than 2 Years||5%|
|2 Years & above but less than 3 Years||5.05%|
|3 Years to less than 5 years||5.05%|
|5 years and above up to 10 Years||5.05%|
|8 years& above to 10 Years||5.05%|
Rates with effect from 1st September 2020:
|Tenure||Interest Rates (Per Annum)|
|1 Year & above but less than 2 Years||3.50%|
|2 Years & above but less than 3 Years||3.50%|
|3 Years to less than 5 years||3.50%|
|5 years and above up to 10 Years||3.50%|
|8 years& above to 10 Years||3.50%|
Rates with effect from 1st April 2022:
|1 year and above but less than 2 years||1.18%||1.35%||0.02%||0.55%||0.99%||0.94%|
|2 years and above but less than 3 years||1.6%||1.61%||0.21%||0.55%||2.05%||1.42%|
|3 years and above but less than 4 years||1.83%||1.73%||0.36%||0.54%||2.27%||1.78%|
|4 years and above but less than 5 years||1.94%||1.74%||0.46%||0.55%||2.33%||2.05%|
|5 years only||2.02%||1.71%||0.52%||0.56%||2.34%||2.17%|
Rates with effect from 1st April 2022:
|1 year and above but less than 2 years||1.18%||1.35%|
|2 years and above but less than 3 years||1.6%||1.61%|
|3 years only||1.83%||1.73%|
Summarized account features where Bank of India NRI FD Rates is applied:
|Parameter||NRE FD||NRO FD||FCNR FD||RFC FD|
|Tenure||12 months to 120 months||7 days to 120 months||12 months to 60 months||12 months to 36 months|
|Currency denominated||INR||INR||USD, GBP, EUR, JPY, AUD ,CAD||USD, GBP|
|Repatriation||Freely||Up to USD 1 million||Freely||Freely|
|Taxation (IT)||Exempt||TDS||Exempt||Exempt until resident|
BOI NRE Fixed Deposit calculator is an easy-to-use, hassle-free tool that helps in quick calculation of the maturity amount and the interest earned receivable at the end of the policy tenure. By entering some basic details, you can calculate the correct FD amount. Here are the steps that an investor needs to follow to calculate Fixed Deposit rates on the FD Calculator:
The amount that is invested
The Rate of Interest offered
The tenure of the Fixed Deposit Account
The compounding period, that is, yearly, half-yearly, quarterly, or monthly
The FD Amount
Once entered the following details, an investor will come to know:
The maturity value of the FD
The total interest earned during the complete tenure
Before this, one should know who an NRI is and the expected benefits he gets through Bank of India NRE Fixed Deposit Rates.
A Non-Resident Indian or an NRI is an Indian citizen living in a foreign country for professional, educational, and employment needs for more than 182 days in a year. He or she is entitled to open accounts in the Bank of India to meet specific needs. It is also essential to understand who a Returning Indian is, as the Bank of India offers tailor-made accounts to suit them. A Returning Indian has been an NRI but has returned to the country for permanent residence. The bank offers a product where the Returning Indian can park the earned foreign currency while working abroad.
The NRI’s focus is on Fixed Deposit which guarantees higher returns than a plain Savings Bank account. The reason is that a Fixed Deposit account locks up the invested funds for a mutually agreed period. The Bank of India NRE Fixed Deposit Rates applies for that particular tenure, ranging from 7 days to 120 months. That is why they are called Term Deposits in banking jargon. However, these are generalized terms that need further elaboration. NRI bank accounts are primarily of two types – Savings and Term Deposits. Further, these accounts serve a specific purpose to hold balances in either INR or a designated and approved foreign currency. Thus, the Bank of India opens the following NRI accounts.
NRE Term Deposit
NRO Term Deposit
Bank of India offers four types of Fixed Deposit accounts for the NRI customer, which has already been enunciated earlier. The NRI needs to essentially understand what they mean and how Bank of India NRI FD Rates shall impact their investment goals, obligations, and plans to address their residency status. The accounts are broadly classified by the nature of the fund – whether in INR or the currency of the resident country. Based on these parameters, the various NRI accounts are:
The BOI Non-Resident External FD account sources funds in the resident country where it is earned. But the account balance is held in INR. Thus the foreign currency investment is converted to INR at the applicable conversion rate to add to the account’s balance.
The BOI Non-Resident Ordinary FD account sources its fund within India, by way of earnings through rent, dividends, etc. Needless to say, the account balance is held in INR.
This account is a BOI Foreign Currency Non-Resident FD account, held in the account holder’s earned currency in the resident country. It must, however, comply with the RBI approved currency bucket. Currency conversion is not involved, other than those not matching RBI approval. In such circumstances, the earned currency is converted into the approved one.
This account is exclusively meant for the Returning Indians to park their earned money but in the resident foreign currency. The RBI stipulates the eligible currencies. Other currencies are converted to the stipulated currency if required.
Bank of India NRI FD Rates applied in different accounts:
Now that there is enough clarity on the types of accounts where the NRI is eligible to invest, it is essential to learn about the actual Bank of India NRE FD Rates.
|Bank of India NRE FD Rates in INR|
|Maturity Tenure||Deposits < Rs 2 Crore % PA||Deposits > Rs 2 Crore and < Rs 10 Crore % PA|
|1 year to less than 2 years||5.25||3.50|
|2 years to less than 3 years||5.30||3.50|
|3 years to less than 5 years||5.30||3.50|
|5 years up to 10 years||5.30||3.50|
|8 years up to 10 years||5.30||3.50|
|Rs. 10 Crore and above||Contact the nearest Branch|
|Premature Withdrawal||No interest is paid for less than 12 months|
|Penalty||Deposit < Rs. 5 Lakh < 12 months||Nil|
|Deposit > Rs. 5 Lakh > 12 months||1%|
|Bank of India Interest Rates in FCNR Deposit % PA|
|1 year to less than 2 years||0.98||0.74||0.00||0.47||1.12||0.62|
|2 years to less than 3 years||1.05||0.82||0.03||0.49||1.16||0.71|
|3 years to less than 5 years||1.25||0.98||0.09||0.49||1.46||0.84|
|5 years maximum||1.49||1.12||0.16||0.50||1.71||1.12|
|Premature Withdrawal||Interest||No interest is paid for less than 12 months|
|Penalty||Tenure < 12 months||Nil|
|Tenure > 12 months||1%|
|Bank of India Interest Rates for RFC Deposit in % PA|
|1 year to less than 2 years||0.98||0.74|
|2 years to less than 3 years||1.05||0.82|
|3 years maximum||1.25||0.98|
Bank of India offers the convenient option to the NRI customer to conveniently use the digital platform to open a suitable account to fulfil their investment objectives. The procedure to be followed is described below briefly:
Visit the insurer website and download the form. The NRI can fill it up online also. Print the filled-out form and affix your signature at the appropriate place.
Passport Copy with all the essential pages showing name, date of birth, date of issue, date of expiry, and signature duly authenticated by a Notary Public or Indian Embassy Officials in the resident country.
Two recent photographs of the account holders with respective signatures affixed on the reverse.
The banker or the Indian Embassy officials must verify the account holder’s signature.
The application must be complete in all respects supported by the requisite documents for the applicants and nominee.
The address provided must be comprehensive, containing the foreign and local address, including email and phone numbers.
The account holder must remit the initial deposit in foreign currency from abroad, using any of the under mentioned facilities:
All the requisite documents must be attested by the known bankers or the Indian embassy in the resident country.
The NRI applicant must apply with the attached documents to the nearest Bank of India Branch. The NRI is free to seek assistance from an NRI branch, which is seamlessly located using the branch locator module on the insurer website.
Bank of India is a premier public sector undertaking where the NRI customer always feels at home. With the support of a robust global presence, the Bank of India has designed tailor-made products for the NRI clientele. Return on investments is guaranteed through competitive Bank of India NRI FD Rates, subject to periodic revisions. The bank pays ample attention to the NRI clients providing exclusive service through six dedicated specialized NRI Branches in important centres. As a measure of its commitment to the NRI clients, the Bank of India has set up NRI Centres in critical cities to render specialized services, with the ultimate goal of global expansion.
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