# Bank of India Hikes Fixed Deposit Rates and Introduces 500-Day Star Akshay Scheme

> Effective November 2, Bank of India has revised its fixed deposit rates across multiple tenures and launched the 500-day Star Akshay plan offering up to 7.5 percent annual interest for super senior citizens.

**Type:** article · **Category:** Business · **Published:** 2026-11-02 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/bank-of-india-ne-phiksda-dipojita-para-byaja-daron-men-ki-barhotari-500-dinon-ki-star-akshay-skima-ki-shuruata-54842 · **Language:** English
**Tags:** Bank of India, Fixed Deposit, Interest Rates, Star Akshay FD, Senior Citizens Savings, Banking News

Public sector lender Bank of India has revised its interest rates across fixed deposit accounts starting November 2. Following the repo rate hikes implemented by the Reserve Bank of India, commercial banks initially raised interest on loans, and now deposit rates are seeing upward revisions to reward savers. Under the updated structure, the bank has increased interest yields on deposits maturing between one and three years, providing higher returns across various customer tiers.

## New 500-Day Star Akshay Deposit Plan Introduced
Alongside adjusting regular interest slabs, Bank of India rolled out a dedicated tenure plan titled the Star Akshay Fixed Deposit. This special savings option carries an investment tenure of exactly 500 days. Regular depositors investing in this scheme will receive an annual interest rate of 6.85 percent. Senior citizens are entitled to an improved return of 7.35 percent per annum on the same tenure. For super senior citizens, the annual yield reaches 7.5 percent, marking the highest rate category available under this specific product.

## Revised Rates for Deposits Below 3 Crore Rupees
Substantial revisions have been applied to domestic retail deposits valued below 3 crore rupees. Customers locking in funds for a one-year tenure will earn 6.60 percent annual interest. For deposits held for more than one year but less than three years, the interest rate stands at 6.70 percent per annum. The bank maintains additional margins for aging savers in this retail bracket. Senior citizens earn 0.50 percent over regular investor rates, while super senior citizens secure an extra margin of 0.65 percent per year.

## Adjustments for 3 Crore to 10 Crore Buckets and Non-Callable Options
In the bulk deposit segment covering amounts from 3 crore to 10 crore rupees, Bank of India also increased interest payouts. One-year deposits in this range now fetch 6.55 percent interest annually, while tenures spanning one to three years provide 6.65 percent. Higher incentives are also available on non-callable deposit products, where the bank is offering an extra 0.15 percent interest on tenures between one and three years. Unlike standard callable deposits that permit premature withdrawals subject to minor penalties, non-callable instruments feature a strict lock-in period preventing early redemption before the agreed maturity date.

## What this means for you
The revised deposit rates provide retail and senior savers with enhanced returns on their fixed-income bank savings.

- **For Retail Depositors:** Interest rates on one to three-year deposits now stand between 6.60 percent and 6.70 percent. Savers initiating new term deposits will generate higher guaranteed returns on their balances.
- **For Senior Citizens:** The Star Akshay 500-day scheme yields 7.35 percent for seniors and 7.5 percent for super seniors. Elderly individuals relying on interest earnings can secure improved predictable cash flows.
- **For Bulk Depositors:** Balances between 3 crore and 10 crore rupees earn between 6.55 percent and 6.65 percent. Corporate and high-value savers benefit from improved treasury returns on medium-term placements.
- **For Non-Callable Account Holders:** An additional premium of 0.15 percent applies to one to three-year non-callable deposits. Investors willing to accept strict lock-in parameters can maximize yield without premature exit options.

## Why this happened
The adjustments follow the Reserve Bank of India raising its benchmark repo rate, which prompted commercial lenders to calibrate interest offerings.

- **Benchmark Repo Rate Hikes:** After the central bank increased the key repo rate, lending institutions initially raised interest on advances. To align their asset-liability structures, banks subsequently started raising deposit rates to offer matching value to savers.
- **Liquidity and Deposit Mobilization:** Commercial lenders face ongoing pressure to attract fresh capital and retain existing retail savings. Bank of India adjusted its rate structure effective November 2 to keep its deposit products competitive against broader market alternatives.
- **Demand for Special Tenure Products:** Targeted maturity products like the 500-day bucket allow banks to lock in stable funding while giving savers a clear yield milestone. This operational priority led directly to the launch of the Star Akshay fixed deposit.

## Questions & Answers

### 1. From which date did Bank of India implement the revised FD rates?
Bank of India made the revised fixed deposit interest rates effective from November 2.

### 2. What is the tenure of the Star Akshay Fixed Deposit scheme?
The Star Akshay Fixed Deposit scheme has a dedicated tenure of 500 days.

### 3. What interest rates do senior and super senior citizens receive under Star Akshay?
Under this 500-day plan, senior citizens earn 7.35 percent annually, while super senior citizens receive 7.5 percent.

### 4. What is the new interest rate for a one-year deposit below 3 crore rupees?
Regular deposits below 3 crore rupees held for a one-year tenure now fetch an interest rate of 6.60 percent per year.

### 5. What additional margin is offered on non-callable fixed deposits?
The bank offers an additional interest rate of 0.15 percent on non-callable deposits spanning one to three years.

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