- SBI offers higher interest rates on term deposits with effect from Feb 28
- SBI hikes one year duration deposits from 6.25% to 6.40%
- SBI raises ultra short duration deposits from 5.25% to 5.75%
Essentially, the term deposits (fixed deposits or FDs) of State Bank of India (SBI) can be divided into three broad categories: A) The deposit that are for less than Rs one crore. B) The deposits that are over Rs one crore but less than Rs 10 crore. C) The deposits made for over Rs 10 crore.
Category I: Deposit for lower than Rs one crore
In the first category, the interest rate for the deposits made for one year has been hiked from 6.25% to 6.40%. The interest rate for the deposits made for ultra-short duration that is between seven days and 45 days, has been raised from 5.25% to 5.75%. At the same time, the deposits made for the long-term duration that is for over two years has been raised from 6% to 6.5%.
|Tenors||Earlier||Revised||Earlier (senior citizens)||Revised (senior citizens)|
7 days to 45 days
46 days to 179 days
180 days to 210 days
211 days to less than 1 year
Above 1 year to 455 days
456 days to less than 2 years
2 years to less than 3 years
3 years to less than 5 years
5 years and up to 10 years
Category II: Deposits over Rs one crore but less than Rs 10 crore
In the second category, the rates of interest have been raised by upto 75 basis points. The minimum increase has been made against the deposits that are made for 5 years and above which has been raised from 6% to 6.25%. The deposits made for one year to 455 days has been raised from 6.25% to 6.75%. The deposits made for the ultra-short duration (seven days to 45 days) has been raised from 5.25% to 5.75%.
Category III: Deposits of over Rs 10 crore
In the third category, the deposits made for Rs 10 crore and above will earn an interest that will be higher by upto 75 basis points. The ultra-short duration deposits will earn the interest rate of 5.75% against 5.25% earlier. The moderately long duration interest rates (between 46 days to 210 days) will draw interest rate of 6.7% against 6.25% earlier. The deposits made for a time period that ranges between 211 days to less than two years will draw an interest rate of 6.75% against 6.25%. Similarly, the rate of interest on deposits made for two years to less than three years will be 6.75% against 6% earlier.