The country's largest lender, State Bank of India hiked interest rates on fixed deposits across various tenures above 2 years. The term deposit rates have been increased by 10 to 25 basis points.
The new interest rates on fixed deposits are effective from today as per the notification released on SBI's Website. Below are the complete details:
For fixed deposits below Rs 1 crore:
For fixed deposits between Rs 1 crore and Rs 10 crores:
For fixed deposits over Rs 10 crores:
Also, as per the notification, "the interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% 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%) and resident Indian Senior Citizens (0.50%).
The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits."
The hike in retail term deposits is a move to tighten liquidity in Indian markets. This also signals towards an increase in lending rates in the future.