SBI hikes fixed deposit rates for select maturities
28 November 2018
State Bank of India (SBI), the country’s largest lender, today announced an upward revision in fixed deposit rates on select maturities by 5 to 10 basis points for deposits below Rs1 crore, with immediate effect.
After the rate revision, FDs with maturity period of one to two years will fetch 6.8 per cent interest compared to 6.7 per cent earlier. For senior citizens the FD of one-to-two-year maturity has been revised to 7.30 per cent, from 7.2 per cent.
SBI also slightly raised interest rate on FDs with maturity period of two years to three years while there is no change in other maturity periods.
SBI said the interest rate payable to SBI staff and SBI pensioners will be 1 per cent above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50 per cent above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1 per cent) and resident Indian Senior Citizens.
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” Retail Deposits and NRO deposits shall be aligned as per the proposed rates for domestic retail term deposits, it added.
SBI had last raised interest rate on deposits having more than one-year maturity on 30 July. Recently, many other lenders (both private and state-run) have increased their deposit rates in order to attract deposit from investors in the wake of the liquidity crisis faced by the banking industry.