SBI Raised Interest Rates On Fixed Deposits

Mumbai: The State Bank of India (SBI) has raised interest rates on fixed deposits (FDs) for amounts below Rs 2 crore, effective from December 27, 2023. This adjustment marks SBI as the fifth bank to increase interest rates on term deposits in December 2023, following Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank.

SBI has implemented rate hikes across all tenures, except for deposits with durations of one year to less than 2 years, 2 years to less than 3 years, and five years to ten years. Notably, for deposits maturing in seven days to forty-five days, SBI has raised rates by 50 basis points (bps), resulting in an increased interest rate of 3.50%. Similarly, for deposits maturing in 46 days to 179 days, the bank has increased rates by 25 bps, guaranteeing an interest rate of 4.75%.

Term deposits with a tenor of 180 days to 210 days will now yield a higher interest rate of 5.75%, following a 50 bps increase by SBI. Additionally, the bank has raised rates by 25 bps for tenors ranging from 211 days to less than 1 year, resulting in a 6% interest rate. FDs maturing in 3 years to less than 5 years will now offer an additional 25 bps, providing a 6.75% interest rate.

Senior citizens will enjoy an additional 50 basis points (bps) on these deposits. Following the recent increase, SBI now provides interest rates ranging from 4% to 7.5% on deposits with maturities spanning seven days to ten years.

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