Active Stocks
Thu Jun 20 2024 15:56:35
  1. Tata Steel share price
  2. 182.35 1.28%
  1. HDFC Bank share price
  2. 1,669.00 0.66%
  1. ITC share price
  2. 423.35 -0.08%
  1. Tata Motors share price
  2. 978.10 0.07%
  1. State Bank Of India share price
  2. 843.80 -1.03%
Business News/ Money / Personal-finance/  SBI hikes retail fixed deposit (FD) rates but reduces shorter term bulk deposit rates
BackBack

SBI hikes retail fixed deposit (FD) rates but reduces shorter term bulk deposit rates

SBI is offering senior citizens 50 bps higher interest rate than that given to general public. The bank has hiked interest rate on retail FDs (below ₹1 crore) by up to 10 basis points.

SBI FDs with maturity between 5 and 10 years will now fetch an interest rate of 6.85%Premium
SBI FDs with maturity between 5 and 10 years will now fetch an interest rate of 6.85%

India’s largest bank, State Bank of India or SBI, has increased interest rates retail fixed deposits or FDs, below 1 crore. The revised rates came into effect from 30 July, just ahead of the RBI’s monetary policy announcement on 1 August. The higher rates are applicable on SBI fixed deposits of more than one year. SBI, for example, is offering an interest rate of 6.70% on FDs with maturity between one year and less than two years, up from 6.65% it was offering earlier.

For FDs maturing between 2 years and 3 years, SBI is offering 6.75% as compared to 6.65% earlier. The rate for deposits between 3 and 5 years has been revised to 6.80% from 6.70%. FDs with maturity between 5 and 10 years will fetch an interest rate of 6.85%, as compared to 6.75% earlier.

After the rate revision, the interest rate on SBI’s income-tax saving deposits also goes up. SBI’s tax-saving FDs will now offer 6.85% to the general public, as compared to 6.75% earlier. Tax-saving deposits have a minimum lock-in period of five years and the amount invested in a tax-saving fixed deposit is eligible for tax exemption under Section 80C.

Senior citizens get 0.50% higher interest rate than what SBI offers to the general public. The interest rate for senior citizens for tenures over one year has also been revised higher.

SBI’s latest interest rate on deposits below 1 crore

But SBI has lowered shorter term bulk deposit ( 1 crore to 10 crore) rates by 30 basis points (bps) to 45 bps. For example, SBI has cut interest rate on bulk deposits with maturity between 46 days to 179 days to 6.2% from 6.70%. On the other hand, SBI has increased the longer term bulk deposit rates by 15 bps to 60 bps. For example, SBI is offering interest rate of 6.85% on bulk deposits with maturity between 5 years and up to 10 years, up from 6.25%.

Similarly, SBI has reduced shorter term bulk deposit (above 10 crore) rates by 30 bps to 45 bps. For example, SBI is offering 6.25% on bulk deposits (above 10 crore) for 46 days to 179 days, lower than 6.70% offered earlier. For longer term bulk deposits more than 3 years, SBI has jacked up interest rate by up to 60 basis points.

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 31 Jul 2018, 11:02 AM IST
Next Story footLogo
Recommended For You