IDBI Bank revises deposit rates with immediate effect

IDBI Bank has revised interest rates for retail term deposits across tenors with immediate effect. For deposits of some time buckets, the bank has increased the rate by 10-50 basis points, while in some time buckets it has reduced the rate by merging the time buckets. The bank has also withdrawn the penalty on premature withdrawal with effect from January 1, 2014.

The bank is offering 9.1% on deposits of over 1 year. As compared to this, State Bank of India and HDFC Bank offer 9%, while ICICI bank is offering 8%.

According to a press release issued by the bank, for deposits of less than Rs 1 crore, the rate on term deposits of over 6 months to 499 days has been hiked to 9.1% (9%). On term deposits of five years to seven years and seven years to 10 years, the rate has been increased to 9% from 8.7% and 8.5%, earlier.

Revised interest rates and maturity buckets
Up to December 31, 2013	Up to December 31, 2013	From January 1, 2014	From January 1, 2014
Maturity Bucket	Existing ROI
(% p.a.)	Maturity Buckets	Interest Rates
(% p.a.)
15 - 45 days	6	15-45 days	6
46 - 200 days	8.5	46 days to 6 months	8.5
201 days – 1 year	8.75	6 months 1 days	8.75
1 year 1 day – 499 days	9	6 months 2 days to 499 days	9.1
500 days	9.4	500 days	9.3
501 days - < 50 months	9	501 days to 5 yrs	9
50 months	9.25
> 50 months - 5 yrs	9
> 5yrs - 7yrs	8.75	>5 yrs-7 yrs	9
>7 yrs – 10 yrs	8.5	>7 yrs – 10 yrs	9
>10 yrs – 20 yrs	8.5	>10 yrs up to 20 yrs	8.5

For deposits of 500 days the bank has reduced the rate to 9.3% (9.4%) and on deposits of 50 months the rate has been reduced to 9% (9.25%).

Senior citizens will get an additional interest rate of 50 bps over and above the coupon rate from maturity bucket of 6 months 2 days and above, the press release said.