If you are looking for a safe investment with guaranteed returns, a fixed deposit in a government bank can be a good option.
Bank of India, one of India’s 12 public sector banks, is currently offering attractive interest rates on fixed deposits after revising its rates from December 1, 2025.
With the right FD scheme, an investment of ₹2 lakh can earn you interest of up to ₹77,945, making it a reliable choice for long-term savings.
Bank of India FD Interest Rates Explained
Bank of India allows customers to open fixed deposits for periods ranging from 7 days to 10 years.
The interest rates currently range between 3.00 percent and 7.35 percent, depending on the tenure and the depositor’s age.
The highest interest is offered under the Star Swarnim Special FD Scheme with a tenure of 450 days.
Under this scheme:
General citizens earn 6.70 percent interest
Senior citizens earn 7.20 percent interest
Very senior citizens earn 7.35 percent interest
For FDs with a tenure of more than 3 years and less than 5 years, the bank offers:
6.25 percent interest for general citizens
6.75 percent interest for senior citizens
How Much Will ₹2 Lakh Grow Into?
If a general citizen invests ₹2 lakh in a Bank of India FD for 59 months (just under 5 years) at an interest rate of 6.25 percent, the maturity amount will be ₹2,71,302.
This includes fixed interest of ₹71,302.
For senior citizens, the returns are even better. Investing the same ₹2 lakh for 59 months at 6.75 percent interest will give a maturity amount of ₹2,77,945.
This means a guaranteed interest earning of ₹77,945.
Why This FD Can Be a Good Choice
Bank of India is a government-owned bank, which adds an extra layer of trust and security.
Fixed deposits here offer predictable returns and are ideal for people who want to avoid market risk, especially retirees and conservative investors.
Before investing, it is always advisable to check the latest interest rates at the bank branch or on the official website, as FD rates may change over time.