Bank of India Slashes Interest Rates and Eliminates Minimum Balance Charges
Bank of India (BOI) has introduced customer-friendly measures effective July 7, 2025. These include interest rate reductions on green deposits, savings accounts, home loans, and education loans. BOI has also eliminated minimum balance charges for all savings accounts. These changes aim to enhance customer value, support credit growth, and improve financial inclusion.

*this image is generated using AI for illustrative purposes only.
Bank of India (BOI) has announced a series of customer-friendly measures, including interest rate reductions and the elimination of minimum balance charges, effective July 7, 2025. These changes are expected to enhance customer value and support credit growth in various sectors.
Interest Rate Reductions
The bank has implemented interest rate cuts across several key products:
Green Deposits: BOI has reduced rates on its environmentally-focused deposit products, potentially adjusting to market conditions while maintaining its commitment to sustainable banking practices.
Savings Accounts: Customers will see a decrease in the interest rates on their savings accounts. While this may impact returns for savers, it could allow the bank to offer more competitive lending rates.
Home Loans: The reduction in home loan interest rates could make homeownership more affordable for many Indians, potentially stimulating the real estate sector.
Education Loans: Lower rates on education loans may ease the financial burden on students and their families, making higher education more accessible.
Waiver of Minimum Balance Charges
In a move that will benefit a wide range of customers, Bank of India has announced the waiver of charges for non-maintenance of minimum balance in all savings accounts. This decision is likely to:
- Provide relief to low-income account holders
- Attract new customers who may have been hesitant to open accounts due to minimum balance requirements
- Enhance financial inclusion by making banking services more accessible
Strategic Implications
These changes reflect Bank of India's strategy to:
- Boost credit growth by making loans more attractive across various segments
- Increase its customer base by removing barriers to account opening and maintenance
- Adapt to the competitive banking landscape by offering more customer-friendly policies
While the reduced deposit rates may impact savers, the overall package of changes aims to strike a balance between different customer segments and the bank's growth objectives.
As these changes take effect from July 7, 2025, customers are advised to review their accounts and loan terms to understand how these new rates and policies will affect their financial planning and banking relationship with Bank of India.
Historical Stock Returns for Bank of India
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.90% | -2.81% | -10.36% | +17.46% | -6.27% | +131.36% |