SBI hikes deposit rates by 25 to 75 bps

State Bank of India (SBI), the country's largest lender, today announced increases in interest rates varying from 25 basis points to 75 basis points on term deposits across all maturities, beginning 1 October.

SBI has maintained the interest rates at 4.00 per cent for deposits of 15 to 45 days maturity and 46 to 90 days maturity.

SBI raised interest rate on deposits of 91 days to 180 days maturity to 5.50 per cent from 4.75 while maintaining the rate at 6.0 per cent on deposits of 181 days to less than 1 year maturity.

For deposits of 1 year to 554 days maturity, SBI has raised the interest rate by 25 basis points to 7.0 per cent from 6.75 per cent. The bank will pay 7.5 per cent on deposits of 555 days maturity against 7.25 and 7.25 per cent on deposits of 556 days to less than 2 years maturity ageist the existing 6.75 per cent.

For deposits of 2 years to 999 days maturity the new rate would be 7.0 per cent against the existing 7 per cent while for deposits of 1,000 days maturity, it would be 7.75 per cent against the current 7.25 per cent.

For deposits of 1,001 days to less than 3 years maturity, the new rate would be 7.25 per cent against the existing 7 per cent while it has maintained the interest rate for deposits of 3 to 5 years at 7.25 per cent.

Deposits of 5 years to less than 8 years would continue to get 7.50 per cent interest while deposits of 8 years and up to 10 years would continue to get 7.75 per cent interest.
 
Term deposits for maturity period of "7 days to 14 days" will continue to be accepted only for amounts of Rs1 crore and above and there would be no premium in rate of interest for single domestic term deposit of Rs15 lakh but less than Rs1 crore of any maturity, SBI said in website release.

The new rates will be applicable to fresh deposits and renewals of maturing deposits. The interest rates on "Capgains Plus", "SBI Tax Savings Scheme 2006 (SBITSS)" schemes and NRO deposits will be aligned as per the proposed rates for domestic term deposits. These rates of interest will also be made applicable to domestic term deposits from cooperative banks, it said.
 
SBI had revised interest rates on domestic term deposits of Rs1 crore and above for maturities of 271 days to less than 1 year from 5 per cent to 5.25 per cent with effect from 27 March 2010.(See: PNB hikes base lending rate to 8.50 per cent; Axis Bank revises it to 7.75 per cent)