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BankingNABARD / RBI

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  • Scheme withdrawn: special 400-day FD with rate up to 7.30%.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 Up to what interest rate did the withdrawn Bank of India special FD offer?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.

This topic is part of Daily Current Affairs 13 April 2025 (13 topics).

All topics of the dayDay quizApril 2025

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