Bank of India revised its interest rates on fixed deposits (FDs) for the second time this month. The new rates came to effect on 10 September. The public sector bank had made its previous rate revision on 1 September, keeping the rate revision just ten days apart.
The rates were reduced by 10 to 60 basis points this time around.
Bank of India interest rates on term/fixed deposits less than Rs 10 crore:
|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||5.25|
|91 days to 179 days||5.50||5.30|
|180 days to less than 1 year||6.00||5.70|
|1 year & above but less than 2 years||6.50||6.30|
|2 years & above but less than 3 years||6.25||6.00|
|8 years & above to 10 years||6.25||5.75|
Following the Reserve Bank of India's (RBI) fourth consecutive key rate cut, banks have been making more frequent revisions in deposits as well as lending rates. Amid concerns of an economic slowdown, the central bank, as well as the government, has been stressing on the faster transition of repo rate cuts in retail banking products.
Many banks, including State Bank of India, have cut interest rates on FD and well as loans.
Further, starting 1 October, all public sector banks will be required to link their retail loan interest rates to external benchmarks as per RBI instructions.