Bank of India has revised its fixed deposit (FD) rates, according to reporting by Moneycontrol.com. It has also launched a new 500-day deposit. The same report says ICICI Bank is offering up to 7.20 percent interest on its FDs.
For you, this means a fresh chance to compare FD rates. If you have idle savings, a new tenure or a higher rate could earn you a little more. But read the fine print before you book.
Key takeaways
- Bank of India changed its FD rates and added a 500-day deposit, as reported.
- ICICI Bank is offering up to 7.20 percent, per the same report.
- 'Up to' means the top rate. It may not apply to every tenure or every customer.
- Compare rates across banks before you lock in your money.
- Deposits are insured up to ₹5 lakh per depositor per bank.
How a special-tenure FD works
An FD is simple. You give a bank a lump sum for a fixed time. The bank pays you interest and returns your money at the end.
Most banks offer common tenures like one year or two years. Some also launch special tenures, like 500 days. These often carry a slightly different rate. Banks use them to attract fresh deposits.
The details of the Bank of India rate changes aren't in the headline. So check the bank's own rate page for exact figures. You can also see broader numbers on our interest rates page.
What changes for savers
A higher rate means more interest on the same money. Let's use an easy example. Say you put ₹1,00,000 in an FD at 7.20 percent for one year.
Simple interest would be about ₹7,200. Most banks add interest every quarter. That lifts the total to about ₹7,400.
The table below shows simple yearly interest at 7.20 percent. These are examples, not offers.
| Deposit amount | Interest in 1 year at 7.20% (simple) | Interest at 6.50% (simple) |
|---|---|---|
| ₹1,00,000 | ₹7,200 | ₹6,500 |
| ₹5,00,000 | ₹36,000 | ₹32,500 |
| ₹10,00,000 | ₹72,000 | ₹65,000 |
The gap grows with the amount you deposit. That's why large savers compare rates closely.
Who is affected
New depositors are the main group. If you're opening an FD now, the new rates apply to you.
Existing FD holders usually keep the rate they booked. Your old FD doesn't change when the bank revises its card rates. Retirees may also care most, since many rely on FD interest for monthly costs.
If you're a borrower, this story matters less. FD rates and loan rates are different things. For loan costs, see our news hub for updates.
What to do now
Don't book in a hurry. Use this short checklist:
- Check the exact rate for your tenure on the bank's website or app.
- Ask if the top rate is for senior citizens only.
- Compare at least three banks for the same tenure.
- Read the penalty rules for breaking the FD early.
- Keep each bank's deposit within the ₹5 lakh insurance limit where you can.
If you need the money in under a year, a long FD may not suit you. Keep an emergency fund in a savings account first.
Frequently asked questions
Is 7.20 percent the rate for everyone at ICICI Bank?
Not necessarily. The report says 'up to' 7.20 percent. That's usually the top rate for certain tenures or groups. Check the bank's rate page for your case.
Will my old Bank of India FD rate change?
No, usually not. An FD keeps the rate you booked it at. New rates apply to new deposits and renewals.
Is my FD money safe?
Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank. That covers both your principal and interest together.
BankCreds analysis
Don't rush because of a headline rate. A special-tenure FD like 500 days is often a way to attract fresh money. The best rate usually sits on one tenure only.
Take a saver with ₹5 lakh. At 7.20%, one year of simple interest is ₹36,000. At 6.50%, it's ₹32,500. The gap is ₹3,500 a year. That's useful, but it's not life-changing.
What this does not mean
It doesn't mean all FD rates are rising. Banks tweak rates often, and a cut can follow a hike. Also, 'up to' rates may apply only to some tenures or groups, such as senior citizens. Check your own rate before you book. If you may need cash early, look at the penalty for breaking the FD first.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Moneycontrol.com — originating report https://www.moneycontrol.com/news/business/personal-finance/bank-of-india-revises-fd-rates-launches-500-day-deposit-icici-bank-offers-up-to-7-20-percent-interest-14067488.html
- DICGC deposit insurance — Bank deposits are insured up to ₹5 lakh per depositor per bank https://www.dicgc.org.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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