Bank of India hikes rates 25-50 bps

State-run Bank of India (BoI) today announced a 25-50 basis points (bps) hike in domestic rupee term deposit rates. The rates are effective from December 1, 2005.

BoI has effected a 25 basis points hike in interest rate on deposits of 91 days to 179 days to 5 per cent and on deposits of 180 days to 364 days to 5.25 per cent.

For all deposits with maturity above a year, the bank has hiked rates by 50 basis points. BoI said deposits with maturity between 1 year and less than two years has been raised to 5.75 per cent and for maturity between three and five years to 6.25 per cent. The interest rate for deposits above five years stands unchanged at 6.25 per cent.

The bank also offers an interest of 0.5 per cent on deposits of senior citizens for six months to less than a year. Whereas deposits of 1 year and above maturity will enjoy an additional rate of 1 per cent.

BoI has announced that the interest rate on the floating rate deposit scheme will be 0.25 per cent over term deposit rates applicable for the relevant tenure of deposits for maturities of three years and above (i.e. the bank's benchmark rate), on the day the deposit is made. The rate will be reset at the beginning of each calendar quarter in case of a change in the benchmark.

In case of deposits exceeding Rs 15 lakh, the rates have been revised by 25 bps on deposits having a term ranging between 91 days and 179 days to 5.25 per cent and on deposits of 180 days to less than 5 years by 50 basis points.

The rate on deposits of 1 year to less than two years has been revised to 6 per cent and on deposits of 3 years to less than 5 years to 6.50 per cent.

However, for all deposits exceeding Rs 15 lakh, with a term of five years and above, the rates have been revised to 6.50 per cent (6.25 per cent).