Bank of India has revised its interest rates on fixed deposits with effect from 1 September 2019. This is the second consecutive month of a revision made by the public sector bank on its term deposits.
|Tenure||Interest on deposits less than Rs 2 crore (%)||Interest on deposits of Rs 2 crore and above but less than Rs 10 crore (%)|
|7 days to 45 days||4.25||4.25|
|46 days to 90 days||5.50||5.50|
|91 days to 179 days||5.75||5.75|
|180 days to less than 1 year||6.00||6.00|
|1 Year & above but less than 8 years||6.50||6.50|
|8 years & above to 10 years||6.35||6.35|
Note that FDs for a period of 7 to 14 days requires a minimum deposit requirement of Rs 1 lakh.
Frequent revisions in fixed deposit interest rates are being seen after the Reserve Bank of India asked banks to fasten the transmission of key policy rate cuts made by the central bank to retail loans and deposits. Leading public and private sector banks have made the necessary rate cuts on deposits as well as loans.
This week, RBI made it mandatory for all banks to link retail and MSME loans to external interest rate benchmarks starting 1 October.
Bank of India was not a part of the PSB mergers announced by Finance Minister Nirmala Sitharaman, last week.