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Bank of India Ends 400-Day FD Scheme, Trims Deposit Rates

13 April 20251 min read
BANKING & FINANCEBank of India Ends400-Day FDScheme, TrimsDeposit Rates13 April 2025safalsetu.com

Why in the news

After RBI’s easing, Bank of India stopped a popular high-yield deposit offer and lowered returns on other deposits.

Key facts

  • Scheme withdrawn: special 400-day FD with rate up to 7.30%.
  • Rate cuts: short-term and medium-term FDs for several tenures.
  • Effective date: April 15, 2025.
  • Trigger: RBI’s policy rate reduction.

Implications

  • Savers, especially those who depend on fixed income, will earn less.
  • Investors in the special scheme may need to rethink plans.
  • More banks, public and private, are expected to align deposit rates with RBI’s stance.

Outlook

  • Savers may look at alternatives such as mutual funds or equity-linked investments as FD returns lose appeal.

Exam angle

  • Bank: Bank of India.
  • Scheme tenure: 400 days.
  • Link: deposit rates move with the RBI policy rate cycle.

Test yourself

1. Which special deposit scheme did Bank of India withdraw?

The bank discontinued its special 400-day fixed deposit scheme.

2. Up to what interest rate did the withdrawn Bank of India special FD offer?

The scheme offered an interest rate of up to 7.30%.

3. From which date did Bank of India lower rates on short and medium-term FDs?

The notes say rates were lowered as of April 15, 2025.