By continuing, you agree to LoansJagat's Credit Report Terms of Use, Terms and Conditions, Privacy Policy, and authorize contact via Call, SMS, Email, or WhatsApp
Disclaimer: The information published on LoansJagat is intended for general informational and educational purposes only and should not be considered financial, legal, or investment advice. Interest rates, loan terms, statistics, and other data may change over time and may vary by lender or source. Please verify the latest information and consult a qualified financial advisor or the respective Bank/NBFC before making any financial decisions.
Apply for Loans Fast and Hassle-Free
Subscribe Now
About the author
LoansJagat Team
‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
Related Blog Post
Simplify All Your Loans Into One Affordable EMI
Customers Served
Debt Consolidated
1200+ Reviews
Locations in India
Club all Loans & Credit Card Bills into Single EMI
Quick Apply Loan
Consolidate your debts into one easy EMI.
Takes less than 2 minutes. No paperwork.
10 Lakhs+
Trusted Customers
2000 Cr+
Loans Disbursed
4.7/5
Google Reviews
50+
Banks & NBFCs Offers
Other services mentioned in this article
Key Takeaways
Bank of India Raises FD Rates: What Changed and Why It Matters?
Bank of India has increased interest rates on some fixed deposits below ₹3 crore. The new rates are effective from May 18, 2026, and apply mainly to medium and long-term FDs.
This move is important because many banks had been reducing FD rates after the Reserve Bank of India cut the repo rate several times since February 2025, which brings it down to 5.25% by December 2025.
This could be a good chance to lock in better returns before rates fall again for depositors. Experts say banks have already reduced FD returns across many tenures, especially in the one to two-year category. Because of this, higher FD rates are becoming harder to find.
*T&C Apply
Senior citizens get an extra 0.75% and super senior citizens get an extra 0.90% for deposits of 3 years and above.
Customers choosing non-callable FDs above ₹1 crore with a minimum tenure of one year will receive an extra 0.15% interest. But these deposits do not allow premature withdrawal or loans against the FD.
This increase is especially helpful for retirees and senior citizens looking for steady income. Once the FD is booked, the interest rate stays fixed for the full tenure even if market rates fall later.
Financial experts believe this may be a limited-time opportunity. Adhil Shetty, CEO of BankBazaar, said that FD rates have already come down across many tenures and may fall further if the RBI continues cutting rates.
Experts are also recommending FD laddering. This means dividing your money into multiple FDs with different maturity periods instead of putting all the money into one FD. This method gives flexibility and allows investors to benefit if rates improve later.
Customers can open FDs through Bank of India branches, internet banking, or the bank’s mobile app.
Bank of India’s FD rate hike comes at a time when most banks are reducing returns on deposits. This may be a good time to lock in higher rates for the next few years for people looking for a safe and fixed income, especially senior citizens. The FD laddering method can also help balance safety and flexibility.
1. Will FD interest rates go up again after Bank of India’s latest hike?
Yes, FD rates can increase again in the future, but it depends on RBI policy and market conditions. Right now, most banks are lowering deposit rates because of repo rate cuts. Bank of India’s recent FD hike is one of the few positive changes for savers in 2026.
2. Which Indian banks are still offering higher FD rates in 2026?
A few banks are still giving better FD returns despite falling interest rates. Bank of India recently raised rates up to 6.70% for general customers, while senior citizens can get even higher returns depending on the tenure. Smaller banks and some private banks are also offering competitive FD rates for limited periods.
.png&w=3840&q=75)
