State-owned Bank of India (BoI), today reduced interest rates on deposits of less than Rs 1 crore for one year and above by 25 basis points, effective from May 8.
With the reduction, one year to less than five year maturity and 5 years and above maturity deposits of BoI will now offer a rate of 7 per cent as against 7.25 per cent earlier.
Last week, country's largest public sector lender State Bank of India had slashed its deposit rates by 25 basis points on all tenures.
The revision will be applicable for deposits less than Rs 1 crore, BoI said in a release here.
Interest rates for deposits in other maturities will remain the same, the bank said.
Also, interest rates for floating rate deposit scheme will be 25 basis points over the term deposit rates applicable in the relevant tenures for maturities of three years and above, the bank said.
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This rate will be reset at the beginning of each calender quarter, it said.
Senior citizens will get 50 basis points interest more than the card rates on their deposits of six months and above maturity on all deposit schemes, the bank said.
BoI has also waived the penalty on premature withdrawal of all domestic rupee term deposits irrespective of date and amount, the bank said.
With leading banks slashing deposit rates, more banks are expected to take a relook at their deposit rate structure in the near future.