SBI Hikes Fixed Deposit (FD) Rates By 25 Bps On Select Tenors of Below 1 Year

The country's largest public sector lender with a market cap of Rs 7.49 lakh Cr State Bank of India (SBI) has announced a surprise for its customers by hiking interest rates on fixed deposits of less than Rs 3 Cr on 15th June. For a select number of tenures, from 180 days to a year, investors can now expect 25 basis points higher in returns. Retail investors are now allowed to invest up to Rs 3 Cr; any amount beyond this would be deemed bulk deposits, as recently declared by the Reserve Bank of India (RBI), which raised the limit for bulk fixed deposits from Rs 2 Cr to Rs 3 Cr.

SBI FD Rates

The bank will continue to give an interest rate of 3.50% on fixed deposits maturing in 7 to 45 days, while SBI will continue to offer an interest rate of 5.50% on those maturing in 46 to 179 days.

For a time frame of 180 days to 210 days, SBI increased interest rates by 25 basis points from 6% to 6.25%. For 211 days to less than a year, it increased interest rates by 25 basis points from 6.25% to 6.50%.

Deposits maturing in 1 year to less than 2 years will continue to fetch an interest rate of 6.80% and those maturing in 2 years to less than 3 years at SBI will continue to pay an interest rate of 7%.

The interest rate on domestic term deposit accounts that mature in three years to less than 5 years will stay at 6.75%, while the interest rate on accounts that mature in five years and up to 10 years will remain unchanged at 6.50%.

Source: SBI Website

"The specific tenor scheme of "400 days" (Amrit Kalash) at Rate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for rate of interest of 7.60%. The Scheme will be valid till 30-September-2024," mentioned SBI on its official website.

For three specific tenors of 1111, 1777, and 2222 days, SBI is also accepting Green Rupee Term Deposits at a rate that is 10 basis points lower than the card rate for retail deposits. SBI is now paying a 30 bps higher interest rate than the card rate for tenors of one year and a 40 bps higher interest rate for tenors of two years on Sarvottam (Non-Callable) Domestic Retail Term Deposits of above Rs 1 crore to less than Rs 2 crores where pre-mature withdrawal is not permitted.

SBI will continue to offer an additional interest rate of 50 bps over and above the card rates to senior citizens on tenors of 1 to 5 years but on 5 years and up to 10 years tenure, resident senior citizens will receive an additional premium of 50 bps including the existing 50 bps under "SBI We-care" deposit scheme, hence the rate of return will be 7.50% for senior citizens compared to the standard rate of 6.50%.

Meanwhile, Union Bank of India also announced a revision on its retail term deposits of below Rs 3 Cr on 15th June. Union Bank would pay interest rates between 3.50% and 6.50% on tenures ranging from 7 days to 10 years, and a maximum return of 7.25% on tenures of 399 days to the general public.