SBI hikes interest rates on fixed deposits above two years
The latest hike is especially good news for those who have FDs below Rs 1 crore and for those haven't invested in bank tax-saving FDs.
By ET Online |
BCCL
SBI had last hiked interest rates on FDs in January and February as well.
State Bank of India (SBI), the country's largest lender, has hiked interest rates on fixed deposits (FDs) across various tenures by 10-25 basis points, effective from today. A basis point (bps) is one-hundredth of a percentage. According to the bank's website, it has hiked rates for tenures ranging from two years to 10 years and will now earn between 6.6 percent and 6.75 percent.
The latest hike is especially good news for those who have FDs below Rs 1 crore and for those haven't invested in bank tax-saving FDs. From today, for term deposits below Rs 1 crore, the interest rate has been hiked by a maximum of 25 bps. Senior citizens will get 50 bps extra on their deposits. Currently, for FDs of more than a year but less than two years, interest rate is 6.4 percent for general public and 6.90 percent for senior citizens which has remained unchanged. For term deposits between Rs 1 crore and Rs 10 crore, only FDs with a tenure of 1 year but less than two years will see a hike of 25 bps. Here, also the senior citizens will earn 50 bps extra on FDs.
Here is the interest rate on SBI's FDs effective from today.
For FDs below Rs 1 crore of tenure less than two years and below, the rates remain unchanged for both general public and senior citizens.
SBI staff and SBI pensioners will get 1 percent extra on the applicable rates for the general public. SBI pensioners (age 60 years above) will get benefit from the higher interest rate of 0.50 percent, which is available to senior citizens along with the 1 percent extra as mentioned above. SBI had last hiked interest rates on FDs in January and February as well. The bank had also hiked its marginal cost of funds lending rate (MCLR) across maturities in March. The latest hike in FD rates is just one week before the Reserve Bank of India's bi-monthly monetary policy meet for the new fiscal year 2018-19.
We could soon see other banks following suit and hiking rates on deposits. Here is what other banks are offering on their FDs.
ICICI Bank: For FDs below Rs 1 crore , w.e.f. December 11, 2017 HDFC Bank: For FDs below Rs 1 crore Canara Bank: For FDs below Rs 1 crore, w.e.f from Febraury 6, 2018 Bank of Baroda: For FDs below Rs 1 crore, w.e.f. from March 9, 2018
