Bank of India cuts deposit rates

Public sector Bank of India today said it has reduced interest rates on rupee term deposits by 0.25 per cent to 0.50 per cent across various maturities.

The reduction comes into effect from June 27, the public sector lender said in a release here.

For a maturity period of 91-179 days and for deposits less than Rs 1 crore, the interest rate has been cut from 5.50 per cent to 5 per cent, while for 180-269 days it has been revised downwards from 6.50 per cent to 6.25 per cent, it said.

While, for deposits with maturity of 270 days to 364 days, the new interest rate is 6.50 per cent from the earlier 6.75 per cent.

For one year to less than two years, two years to less than three years, three years to less than five years and five years and above, the rate has been slashed from 7 per cent to 6.75 per cent, the release said.

The interest rate on floating rate deposit scheme will be 0.25 per cent over the term deposit rates applicable for the relevant tenures of deposits for maturities of three years and above on the day the deposit is made.

Senior citizens will get 0.5 per cent interest per annum more than the card rates on their deposits of six months and above maturity on all schemes uniformally till further notice, the release said.

The bank has also waived the penalty on premature withdrawal of all domestic rupee term deposits with effect from December 1, 2008, irrespective of date of deposit and amount.