State owned bank, Bank of India has announced a revision in its interest rates on select maturities of fixed deposits. While the bank has increased the rates on retail fixed deposits, interest rates on bulk deposits have been reduced by up to 0.50%. The new rates will be effective from September 1.
Public sector banks have been under pressure from finance ministry to reduce their bulk deposits to a maximum of 15% (including 5% limit on certificate of deposits). For single term fixed deposits exceeding Rs. 1 crore, the bank will pay 7.5% (8% presently) for 46 days to 90 days maturity. 91 days to 179 days maturity would give 8%(8.25%).
Interest on 179 days to less than one year maturity would be 8.5%(8.75%). The bank has however increased the rates on retail fixed deposits (upto Rs. 1 crore) by 1.5% on select maturities
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