Following the footsteps of many public sector banks, state-owned Bank of India (BoI) has decided to hike its deposit rates. The new deposits would be higher by 0.25-0.6 percent across various tenures and will come into effect from July 2.

Speaking in a press release, BoI said that deposits up to Rs 10 crore and having tenure of 1-2 years, will now attract an interest rate of 9.25 percent, up 0.6% from 8.85 percent.

Similarly, the bank has decided to revise the rates for deposits having maturity 2-3 years and 3-5 years. While the former, the rates have been revised from 8.85% to 9.25 percent, the latter is up to 9.5 percent from 8.9 percent, the bank said.

9.5 percent would be the new rate for all deposits having maturity period, five years and above. Earlier this was 8.9 percent.

The bank has said that the revision will be applicable to the short term deposits, having tenure of six months to one year also.