BoI raises fixed deposit rates by up to 75 basis points

State-owned Bank of India today raised fixed deposit rates by up to 75 basis points on select maturities.

The bank has decided to revise the interest rate ranging from 25 basis points to 75 basis points on various domestic term deposits schemes with effect from March 10, 2011, BoI said in a statement.

For 91-179 days term deposits less than Rs 1 crore, the bank will pay 7(%) per cent interest, up 75 basis points from the existing rate.

At the same time, interest for 270 days to one year term deposits has been raised by 50 basis points to 8(%) per cent while interest rate for fixed deposits with maturity period between 1-2 year has been raised by 25 basis points to 9(%) per cent.

Banks have been raising interest rates following a 0.25 per centage point hike in short-term lending (repo) and borrowing (reverse repo) rates announced by the Reserve Bank in its third quarterly monetary policy review last month.

Source - Economics Times