Good news for depositors! SBI hikes FD rates

Bhubaneswar/New Delhi: India’s largest lender the State Bank of India (SBI) has announced revision in interest rates on ‘retail domestic term deposits’ (below Rs 1 crore). The increased deposit rates by up to 50 basis points (bps) will be effective from February 28, 2018.

The bank has also changed the interest rates on ‘domestic bulk term deposits’ of Rs 1 crore to Rs 10 crore and those above Rs 10 crore

With the hike coming into effect, SBI term deposits for 7 to 45 days will earn an annual interest rate of 5.75 per cent instead of 5.25 per cent earlier. Similarly, for one year deposits, customers will earn now 6.40 per cent up from 6.25 per cent earlier. Deposits which mature between two to 10 years will amount to 6.50 per cent rate, a hike of 0.50 percentage points.

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Senior citizens with deposits of 2 years to 10 years will now get 7% as against 6.50% earlier while for deposits maturing below one year they will earn 6.9% as against 6.75% before. They will earn 7.25% on deposits of 1 year to 455 days as against 6.75% earlier, while deposits of 5 years an up to 10 years will fetch them 6.75% compared to 6.50% earlier. For bulk deposits maturing between three to five years the interest rate will increase from 6.50% to 7.15%.

Spread across three different categories, separate interest rate hikes have been effected for deposits that are for less than one crore, between one crore but less than 10 crore and deposits made for over 10 crore.

Domestic bulk term deposits between Rs 1 crore and Rs 10 crore, will fetch 6.75% interest for 1 year to 455 days as against 6.25% earlier while deposits between 5 years and 10 years will now earn 6.25% as against 6% earlier.

Sources said, in the past three months, SBI had twice raised rates on bulk deposits. However, after demonetisation this is the first time that the bank has raised rates on term deposits below Rs1 crore.