SBI raises Fixed Deposit interest rates
31 July 2018
State Bank of India (SBI), the country’s top lender, today announced a 10 basis point hike in interest rates on fixed term deposits of up to Rs1 crore with immediate effect.
Effective today, retail deposits below Rs1 crore of 1 year to 2 years maturity will receive 6.7 per cent interest as against 6.65 per cent earlier.
For senior citizens, the new rate is 7.2 per cent against 7.15 per cent earlier.
For deposits of 2 years to 3 years, the interest rate has been revised to 7.3 per cent from 7.15 per cent.
"The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on “SBI Tax Savings Scheme 2006(SBITSS)” Retail Deposits and NRO deposits shall be aligned as per the proposed rates for domestic retail term deposits. However, NRO deposits of Staff are not eligible for additional 1% interest otherwise applicable to staff domestic retail deposits, these rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks," SBI said in a statement.
The Reserve bank of India at its upcoming policy announcement is widely expected to hike repo rate or at least keep it unchanged.
After last review in June, when the RBI hiked rates by 0.25 per cent, and amidst a hardening in inflation, RBI is expected to maintain a tight money policy.