Bank of India raises deposit rate by up to 2.5%

State-owned Bank of India (BoI) on Tuesday raised fixed deposit rates on various maturities by up to 2.5%.

The bank increased the interest rate by 250 basis points (2.5%) to 5.50% for term deposits of 31-45 days' tenor. The deposit rate increase is the maximum in this slab, the bank informed the Bombay Stock Exchange (BSE).

For fixed deposits with a tenor between 15-30 days, the new interest rate will be 4.50% against the existing 2.75%, while 46-90 days fixed deposits will attract an interest rate of 5.50%, an increase of 150 basis points.

The interest rate on term deposits of between two to three years' tenor will go up by 75 basis points to 9% from tomorrow, while interest on the five-eight years' maturity slab has been increased by 25 basis points to 8.75%.

Meanwhile, Lakshmi Vilas Bank also announced revision on interest rate on term deposits. The bank has increased the interest rates on 1-2 years by 40 basis points to 10.50%.