Vijaya Bank, on Wednesday, announced a reduction in the interest rates on term deposits. The reduction ranges from 0.05 percentage point to 0.10 percentage point. It is for deposits in select maturities. The new interest rates will come into effect from October 4, a release from Vijaya Bank said. The move came in the backdrop of State Bank of India on Tuesday announcing a downward revision in the interest rate on retail term deposits (below Rs.1 crore).
SBI cuts ratesAccording to the change, coming into force on October 7, there will be a one percentage point reduction on such term deposits in the 7-45 days maturity bucket of SBI. Following the decision, the interest rate will be 6 per cent.
It was for the second time in September SBI announced a reduction in the interest rates on retail term deposits. On September 18, it brought down the interest rate on deposits in the maturity bucket of 1 year to less than three years by 25 basis points. The new interest rate was 8.75 per cent. .
In the same announcement, it had also announced an increase in the rate on deposits for 180-210 days from 7 per cent to 7.25 per cent.
