BoI cuts deposit rates by 50 bps

Bank of India has reduced the rates on its term deposit rates by 50 basis points with effect from November 12. The effective rate for a deposit rate for one to two years will be 8.5 per cent and for deposits of five years and above it will be 9 per cent. For deposits above Rs 15 lakh and less than Rs 5 crore, the rates remain unchanged for periods up to one year. The bank has already withdrawn all its special schemes with lock-in-period and special rates of interest. Earlier this week, ICICI Bank had cut interest rates on special deposit schemes by 25-50 basis points and also realigned rates in some segments. Other banks that have reduced interest rates on term deposits include Union Bank of India, which cut rates between 25 and 100 basis points and Centurion Bank of Punjab, which cut rates by 25-50 basis points on deposits of varying maturities.