State run, Syndicate Bank has revised the deposit rates on domestic term deposits amounting less than Rs 1 crore.

The new rates came into effect June 24, onwards and will be applicable on all term deposits of less than Rs.1 crore (new or maturing on or after 24.06.2009).

The interest rates on term deposits for 91 to 120 days and for 121 to 179 days has been revised downwards to 5.50 percent from the earlier 5.75 percent p.a.

The bank has also slashed rates on all deposits with tenure of 271 days and less than 5-yrs by 0.50 percent. With this, rates on deposits with maturity from 271 days to less than 1-yr is 7.00 percent p.a. and for 500 days (exact) is 7.30 percent.

Term deposits with maturity of 501 days and less than 3-yrs will earn interest at rate of 7.25 percent, while those with maturity of 3-yrs and upto 5-yrs is 7.50 per cent and for above 5-yrs it is 7.60 percent.

The senior citizen domestic term deposits (less than Rs. 1 crore) across all slabs, will attract an additional 1 percent, subjected to a cap of 8.10 percent. An additional 1 percent (for all slabs, subject to a cap of 9.10 percent) will also be extended to eligible senior citizen ex-staff members.

The rates on domestic term deposits amounting Rs.25 lakhs and above for a period of 7 days and up to days remains unchanged at 3 percent p.a. Similarly, rate on deposits amounting less than Rs 1 crore, for a tenure of 15 days and up to 29 days and on 30 days to 45 days remains at 3.50 percent p.a.

PSBs have lining up to lower the interest rates, considering the ample liquidy and surplus funds in the system. The lowering of lending rates is expected to spur demand for funds. In a meeting scheduled on 7th July, the Reserve Bank of India (RBI) will meet the PSB chiefs to discuss issues like credit offtakes, credit demand, and interest rate scenario.