This Article is From May 30, 2018

State Bank Of India (SBI) Hikes Interest Rate On Fixed Deposits

With SBI increasing its interest rate on fixed deposits, other banks are also expected to follow suit.

State Bank Of India (SBI) Hikes Interest Rate On Fixed Deposits

SBI's 1 year to less than 2 year FD will now fetch 6.65 per cent.

Here is some good news for savers. India's biggest lender State Bank of India (SBI) has revised its interest higher on retail fixed deposits or FDs below Rs 1 crore. The revised rate on SBI FDs will be effective from May 28. SBI has revision interest rates by up to 25 basis points in select maturities, according to the bank's website. Interest rate on SBI fixed deposits with a maturity of one year to less than two years has been increased to 6.65 per cent for the public, from 6.4 per cent earlier. Senior citizens will get an interest rate of 7.15 per cent as compared to 6.9 per cent earlier.

SBI, which offers home loans as well as personal loans, fixed deposits with a maturity of two years to less than three years will fetch an interest rate of 6.65 per cent, higher than 6.6 per cent earlier. Senior citizens will get 7.15 per cent as compared to 7.10 per cent earlier. The lender could also increase home loan rates as deposit costs go up. 

The interest rates across other maturities have been kept unchanged. For example, SBI will offer an interest rate of 5.75 per cent on fixed deposits with a maturity of seven days to 45 days, 6.25 per cent on 46 days to 179 days and 6.35 per cent on 180 days to 210 days. Other maturity brackets of 211 days to less than one year will fetch 6.40 per cent, three years to less than five years will offer 6.70 per cent and five years and up to 10 years will give 6.75 per cent.
 
TenorsExisting for Public w.e.f. 28.03.2018Revised For Public w.e.f. 28.05.2018Existing for Senior Citizens w.e.f. 28.03.2018Revised for Senior Citizens w.e.f. 28.05.2018
7 days to 45 days5.755.756.256.25
46 days to 179 days6.256.256.756.75
180 days to 210 days6.356.356.856.85
211 days to less than 1 year6.46.46.96.9
1 year to less than 2 year6.46.656.97.15
2 years to less than 3 years6.66.657.17.15
3 years to less than 5 years6.76.77.27.2
5 years and up to 10 years6.756.757.257.25
(Source: sbi.co.in)

(SBI fixed deposit interest rate across different maturities)

With SBI increasing its interest rate on fixed deposits, other banks are also expected to follow suit.