The State Bank of India has hiked its fixed deposit interest rate twice within a week to make its term deposits more lucrative and competitive. It may be recalled that many banks including IDBI, Yes Bank, Axis Bank and Union Bank have already hiked their time deposit rates and the largest public sector lender SBI was forced to roll up its sleeves as well. While the SBI first hiked its Fixed Deposit rates with effect from October 15, it again hiked the rate on October 21. The new rates have come into effect from October 22, i.e. today.
While the October 15 hike brought a marginal hike in fixed deposit rates by up to 0.20 per cent, the State Bank of India has now hiked its term deposit rates by up to 0.8 per cent.
Now, fixed deposits of under Rs 2 crore for a tenure of over 211 days but less than 1 year will earn an interest of 5.50 per cent from October 22, as against 4.70 per cent earlier. For other maturities, the quantum of the rate hike was between 0.25 per cent to 0.6 per cent. However, the bank has kept the 7-45 days deposit rates unchanged at 3 per cent.
Now, deposits for the tenure of 46 days to 179 days will earn an interest of 4.5 per cent and those in 180 days to 210 days will earn an interest of 5.25 per cent. The deposits maturing between one year to two years will earn an interest of 6.1 per cent per annum.
Fixed deposits with a maturity period of two to three years will earn an interest of 6.25 per cent and those between three to ten years will earn an interest of 6.1 per cent.
However, the senior citizens will earn an additional interest of 0.5 per cent. The SBI has also introduced a specific tenor of 1000 days on which it is offering an interest rate of 6.1% w.e.f 15-Aug-2022. The offer is valid up to October 31.
The SBI offers an additional interest of one per cent for its staff and pensioners. Thus, an SBI pensioner or retired officer will get a dual advantage as they will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%). Thus, they can earn an interest of 7.9 per cent on fixed deposits maturing between five to 10 years as the bank is offering a rate of 6.9 per cent for senior citizens.
