Bank of India has revised the interest rates on its fixed deposits, increasing the rates for select maturities of deposits upto Rs. 1 crore. The change would be effective from September 1, 2012.
Deposits of upto Rs. 15 lakh for maturity of 31 days to 45 days will be available for 7% against existing 5.5%. For 46 days to 90 days deposits, the bank will be offering 7% (5.5% present).
For deposits greater than 15 lakh up to Rs. 1 crore, the bank has increased the rates for 31 days to 45 days maturity by 150 basis points to 7% (5.5%); deposits with 46 days to 90 days have also been increased from 5.5% at present to 7%.
Under heavy pressure from finance ministry to reduce its bulk deposits, the bank has reduced the rates on its deposits over Rs. 1 crore. For 46 days to 90 days maturity, the bank has reduced the rates from 8% to 7.5%; whereas interest rates on 91 days to 179 days bulk deposits will be available for 8% (8.25%).
Similarly, interest on bulk deposits for 270 days but less than one year has been slashed from 8.75% to 8.5%.