State-run, Allahabad Bank declares a festival offer in its term deposit schemes of various maturities.

An official press release of the bank mentioned that term deposit of one to three years will offer an interest rate of 10.5% per annum and senior citizens will avail another 0.50% for the same tenure.

The other term deposits of the bank are also offering increased interest rate by 25 basis points to 75 basis points.

However this latest scheme is a special Diwali offer and is only valid for a limited period. The Bank has started offering this scheme from October 28th.

In the second quarter ended September 2008, Allahabad Bank witnessed a fall of around 83% in its net profit. The profit declined to Rs 41.68 crore as compared to Rs 239.78 crore during the same period a year ago.

Recently Allahabad Bank has also tied-up with Kotak Life Insurance to provide value-added services and financial security to its educational loan borrowers.