Effective July 7, the interest rate on Savings Bank (SB) deposits up to ₹1 lakh has been reduced from 2.75% to 2.5%, while the Green Deposit rate has been cut to 6.7% from 7% for a 999-day tenure.
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The Bank of India (BoI) has cut interest rates on its Savings Bank (SB) deposits and Green Deposit products, waived charges for non-maintenance of the minimum balance across all SB account schemes, and reduced home loan interest rates by 50 basis points.
The interest rate on SB deposits up to Rs. 1 lakh has been pared from 2.75% to 2.5% with effect from July 7.
The public sector bank, in a statement, said all other rates under the Savings Deposit category remain unchanged.
These revisions are aligned with the recent repo rate cut and are aimed at maintaining a balanced rate structure between deposits and loans, while ensuring efficient transmission of monetary policy, it added.
The Green Deposit interest rate has been reduced to 6.7% from 7% for a tenure of 999 days, applicable to deposits ranging from Rs. 1 lakh to less than Rs. 10 crore, effective July 7.
Home and retail loans
BoI has also reduced its home loan interest rates by 50 basis points, benefiting both new and existing borrowers. With this revision, the minimum interest rate on home loans now starts at 7.35%, depending on the borrower’s credit score. The new rate structure takes effect on June 16, 2025.
Additionally, interest rates on select existing retail loans, including vehicle loans, have been cut by 50 basis points. The Bank announced that its education loan interest rate now starts at 7.5% for students enrolling in reputed QHEIs (Quality Higher Education Institutions) across the country.
BoI has waived charges on non-maintenance of minimum balance across all Savings Bank Account schemes with immediate effect.
Responding to a softer policy-rate environment, Bank of India, one of the country’s leading public sector banks, has announced a series of key revisions across its deposit and lending products, alongside the complete waiver of minimum-balance penalties on savings accounts. These changes are aimed at aligning with market dynamics, enhancing financial flexibility, and delivering greater value to customers across segments.
Effective July 7, 2025, the Bank has rationalised interest rates on its Green Deposit and Savings Deposit products. The Green Deposit interest rate has been revised to 6.7% per annum from 7% per annum for a tenure of 999 days, applicable to deposits ranging from ₹1 lakh to less than ₹10 crore. Similarly, the interest rate on Savings Deposits up to ₹1 lakh or less than ₹10 crore.
Similarly, the interest rate on Savings Deposits up to Rs. 1 lakh has been adjusted from 2.75% p.a. to 2.5% p.a. All other rates under the Savings Deposit category remain unchanged. These revisions are aligned with the recent repo rate cut and aim to maintain a balanced rate structure between deposits and loans, while ensuring the efficient transmission of monetary policy.
Bank of India has also reduced its home loan interest rates by 50 basis points, benefiting both new and existing borrowers. With this revision, the minimum interest rate on home loans now starts at 7.35%, depending on the borrower’s CIBIL score. The new rate structure takes effect on June 16, 2025.
Further extending its customer-focused approach, the Bank has reduced the education loan interest rate to as low as 7.5% for students enrolling in reputed QHEIs (Quality Higher Educational Institutions) across the country. Additionally, interest rates on select existing retail loans, including vehicle loans, have been cut by 50 basis points. These changes aim to make credit more affordable and accessible, while continuing to offer competitive and flexible loan options.
In a major step towards inclusive banking, the Bank of India has waived charges for non-maintenance of the minimum balance across all Savings Bank Account schemes, effective immediately. This initiative eliminates penalties for non-maintenance, thereby reducing the financial burden on customers, increasing account flexibility, and enhancing overall customer satisfaction.
As a trusted banking partner catering to all segments from students to senior citizens, Bank of India continues to deliver on its promise of barrier-free, customer-first banking.
Published on July 8, 2025
