Bank of India (BoI) has announced a series of customer-friendly changes this June and July 2025. From reduced home loan and education loan interest rates to savings account policy changes and attractive FD schemes — the bank is clearly focused on becoming more accessible and rewarding for its customers.
1. No Minimum Balance Penalty on Savings Accounts
In a major relief to account holders, Bank of India has scrapped the penalty on not maintaining a minimum balance in any savings account variant. This change is effective immediately, allowing customers to manage their accounts more freely without worrying about penalty deductions.
2. Green Deposit Scheme – For Eco-Friendly Investments
- Old Interest Rate: 7% per annum
- New Rate (From July 7, 2025): 6.7% per annum
- Tenure: 999 days
- Investment Range: ₹1 lakh to below ₹10 crore
BoI’s Green Deposit Scheme is a special offering to promote sustainable investment. It aligns customer funds with environmentally beneficial projects.
3. Revised Savings Account Interest Rates
| Deposit Slab | New Interest Rate (Per Annum) |
|---|---|
| Up to ₹1 lakh | 2.50% (was 2.75%) |
| ₹1 lakh – ₹500 Cr | 2.75% |
| ₹500 Cr – ₹1000 Cr | 3.00% |
| ₹1000 Cr – ₹1500 Cr | 3.15% |
| ₹1500 Cr – ₹2000 Cr | 3.30% |
| ₹2000 Cr – ₹2500 Cr | 3.50% |
| Above ₹2500 Cr | 3.65% |
BoI has slightly reduced interest rates on smaller deposits but offers better returns for large account holders.
✅ 4. Home Loan Rates Reduced
- New Starting Rate: 7.35%
- Effective From: June 16, 2025
- Applicable To: New and existing borrowers
- Based On: Customer’s CIBIL score
With this rate cut, buying a home or refinancing an existing loan becomes more affordable for customers.
5. Lower Education Loan Rates
- New Starting Rate: 7.5%
- Eligible Students: Those admitted to top Indian higher education institutions (QHEIs)
Education is now more affordable with reduced loan interest. Other retail loan products like car loans have also seen a 50 basis points reduction.
6. Star Vaibhav Fixed Deposit – Special 450-Day FD
| Customer Type | Regular FD Rate | Non-Callable FD Rate |
|---|---|---|
| Super Senior Citizens | 7.35% | 7.50% |
| Senior Citizens | 7.20% | 7.35% |
| General Public | 6.70% | 6.85% |
- Non-Callable FD: Cannot be withdrawn before maturity
- Maximum Deposit: Less than ₹3 crore
- Tenure: 450 days
- Availability: Limited period offer
Conclusion
Bank of India’s recent updates offer real advantages to a wide range of customers. From zero penalties on savings accounts to reduced loan rates and attractive deposit schemes, the bank has shown its commitment to delivering better financial services.
Particularly, the Star Vaibhav FD and Home Loan interest cut are standout features for conservative investors and new homebuyers.
