Good News: SBI Hikes Deposit Rates

- Advertisement -

New Delhi: The State Bank of India (SBI) revises interest rates, raising them from as low as 15 basis points to 75 basis points, depending on the time period and amount of deposits. A few of the interest rates have even been kept constant such as the interest rate for deposit made for the time period ranging between 46 days and 179 days (for an amount less than Rs. one crore) keeping the rate unchanged at 6.25%.

Essentially, the term deposits (fixed deposits or FDs) of State Bank of India (SBI) can be divided into three broad categories: A) The deposit that are for less than Rs. one crore. B) The deposits that are over Rs. one crore but less than Rs. 10 crore. C) The deposits made for over Rs. 10 crore.

In the first category, the interest rate for the deposits made for one year has been hiked from 6.25% to 6.40%. The interest rate for the deposits made for ultra-short duration that is between seven days and 45 days, has been raised from 5.25% to 5.75%. At the same time, the deposits made for the long-term duration that is for over two years has been raised from 6% to 6.5%.

- Advertisement -

In the second category, the rates of interest have been raised by upto 75 basis points. The minimum increase has been made against the deposits that are made for 5 years and above which has been raised from 6% to 6.25%. The deposits made for one year to 455 days has been raised from 6.25% to 6.75%. The deposits made for the ultra-short duration (seven days to 45 days) has been raised from 5.25% to 5.75%.

In the third category, the deposits made for Rs. 10 crore and above will earn an interest that will be higher by upto 75 basis points. The ultra-short duration deposits will earn the interest rate of 5.75% against 5.25% earlier. The moderately long duration interest rates (between 46 days to 210 days) will draw interest rate of 6.7% against 6.25% earlier.

The deposits made for a time period that ranges between 211 days to less than two years will draw an interest rate of 6.75% against 6.25%. Similarly, the rate of interest on deposits made for two years to less than three years will be 6.75% against 6% earlier.