Two banks have reduced the rates of interest on domestic term deposits; they are Lakshmi Vilas Bank and United Bank of India. Lakshmi Vilas Bank has disclosed that interest rates on domestic term deposits would be reduced and come into effect from September 1,200, revealing the same the bank’s

Assistant General Manager S Manoharan said thatwhile interest rates for maturity period of up to 180 days were kept intact, the rate for 181 days to 364 days was brought down from 9% to 8.75% and for one year to less than two years it was reduced from 10% to 9.75% and the rate for two years to less than five years was reduced from 9.5% to 9.25% and the rate for above five years was revised to 9%.

The additional rate on bulk deposits of Rs 15 lakh and above was revised to 0.5% and 0.25% respectively for the maturity period of 46 days to less than one year and one year and above from the current level of 1% and 0.50% respectively.

On the other hand, the United Bank of India (UBI) has reduced the rates of interest on domestic term deposits of different maturities from September 5, 2001 and the same would also apply to new deposits and renewals.

The revised rates on different maturity periods vary for deposits below Rs 15 lakh and those above Rs 15 lakh. However, on deposits between two years and three years and deposits of three years and above, the rate of interest in both the categories has been kept uniform at 8.5% and 9% respectively.

Across all periods of maturity, deposits above Rs 15 lakh attract interest rates, which are between 0.25% and 0.50% more than on deposits less than Rs 15 lakh.