State run, Allahabad Bank has revised interest rates on domestic term deposits amounting less than Rs.1 cr, downwards by 25 to 50 basis points.

The revised rates came into effect July 1 onwards and will be applicable for all types of fresh and renewed term deposits, including RD (recurring deposits) and Capital Gains Accounts Scheme, 1988.

The interest rate on deposits less than Rs 1 crore, for 15 to 29 days and or 30 days to 45 days, both has been reduced to 3.00 percent from the earlier 3.25 percent and 3.50 percent respectively.

Deposits for 46 days to 60 days and for 61 days to 90 days, both will earn interest at revised rate of 4.25 percent. The rate on deposits for 91 days to 179 days, has been lowered from 5.50 percent to 5.25 percent.

Deposits for 180 days to 269 days and for 270 days to 364 days, both will earn interest at revised rate of 6.25 percent.

The bank has discontinued the interest rate at 8 percent p.a. for 800 days on deposits below Rs.1 crore, with effect from 1 July 2009 onwards.

The bank has also revised rates on NRE Rupee Term Deposit, Foreign Currency Non-Resident (FCNR (B)) Account and Resident Foreign Currency (RFC) accounts with effect from 1 July, 09.

A penalty of 1 percent will be levied on premature withdrawals with tenure of 1 year or more. In case the customer closes the term deposit prematurely for reinvestment in the bank itself, no penal charges will incur. Deposits of any amount with maturity period of 15 days and up to 1-year will not attract any penalty for premature withdrawal.

Recently the bank had reduced its benchmark prime lending rate (BPLR) by 25 basis point reduction to 12 percent.