SBI hikes interest rates by up to 25 bps on FDs below ₹2 cr; introduces 400 days tenure scheme | Mint
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Business News/ Money / Personal Finance/  SBI hikes interest rates by up to 25 bps on FDs below 2 cr; introduces 400 days tenure scheme
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SBI hikes interest rates by up to 25 bps on FDs below ₹2 cr; introduces 400 days tenure scheme

SBI has hiked interest rates by 5 bps to 25 bps on fixed deposits below ₹2 crore with effect from February 15. Also, the bank introduced a specific tenure scheme of 400 days where it is offering a 7.10% rate.

Senior citizens are the biggest beneficiary as they earn an additional premium on the normal rates.Premium
Senior citizens are the biggest beneficiary as they earn an additional premium on the normal rates.

India's largest public sector lender, State Bank of India (SBI) has hiked interest rates by 5 bps to 25 bps on fixed deposits below 2 crore with effect from February 15. Also, the bank introduced a specific tenure scheme of 400 days where it is offering a 7.10% rate. Senior citizens are the biggest beneficiary as they earn an additional premium on the normal rates. 

General FD rates:

SBI has hiked FD rates by 25 bps on 2 years to less than 3 years tenure to 7% from the previous 6.75%. Another 25 bps hike each was given on tenures from 3 years to 10 years --- taking the rate to 6.50% from the earlier 6.25%.

The lowest hike of 5 bps was given on 1 year to less than 2-year tenure to 6.80% from the previous 6.75%.

Interest rates on FDs with less than 1-year tenures remain unchanged. SBI continues to offer 5.75% on 211 days to less than 1 year; 5.25% on 180 days to 210 days; 4.50% on 46 days to 179 days; and a 3% rate on 7 days to 45 days.

Senior citizens' FD rates:

Just like the general category, interest rates on FDs below 2 crore for senior citizens have also been hiked on tenures from 1 year and above. But generally, elderlies earn higher rates on FDs than compared to the general category.

SBI raised FD rates for senior citizens by 25 bps each in 2 years to less than 3 years to 7.50% from 7.25%. A similar hike was given on 5 years and up to 10 years tenure to 7.50% from the previous 7.25%. This would be the highest interest rate offered by SBI to senior citizens.

Further, SBI hiked rates by another 25 bps to 7% on 3 years to less than 5 years tenure from the previous 6.75%. The 5 bps hike is given on 1 year to less than 2 years to 7.30% from the earlier 7.25%.

Rates are unchanged below 1-year tenure. An elderly will continue to earn 6.25% on 211 days to less than 1 year; 5.75% on 180 days to 210 days; 5% on 46 days to 179 days; and 3.50% on 7 days to 45 days tenures.

New tenure scheme:

Additionally, SBI has also introduced a specific tenor scheme of "400 days" under which it is offering a 7.10% rate with effect from February 15. This scheme is valid till March 31, 2023.

At present, SBI has a special ‘SBI Wecare’ deposit scheme for Senior Citizens in the Retail TD segment wherein an additional premium of 50 bps over & above the existing 50 bps i.e. 100 bps over card rate for the public (as indicated in the above table) will be paid to Senior Citizens on their retail TD for '5 Years and above' tenure only. ‘SBI Wecare’ deposit scheme stands extended up to March 31, 2023.

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Published: 15 Feb 2023, 11:50 AM IST
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