IDBI Bank has reduced its retail term deposit rates (deposits up to an amount less than Rs 1 crore) in two short-term maturity buckets.
The bank’s retail deposit rates in two short-term buckets — 91 days to less than six months were cut by 50 basis points (bps) to 7.25 per cent and in six months to 269 days bucket by 15 bps to 8.5 per cent, the bank said in a statement.
A basis point is one hundredth of a percentage points. The revised interest rates would come into effect from May 13, 2013.
The reduction is considered in response to the signals emanating from RBI’s Monetary Policy for 2013-14, announced on May 3, 2013, the bank said.
Interest rates to senior citizens
Further, additional interest rates payable to senior citizens over the normal interest rates were rationalised to a uniform 50 bps across all retail term deposits having a maturity of six months up to 20 years, including for tax-saving deposits.
Accordingly, the offer rate on retail deposits less than six months will be identical for normal and senior citizens.