With effect from February 15, interest rates for fixed deposits under 2 crore have increased. From 5 basis points to 25 basis points at India’s largest public sector lender, State Bank of India (SBI). Additionally, the bank offered a special 400-day tenure plan with a 7.10% rate. Senior citizens benefit most since they receive a higher premium than average rates.
SBI increased FD rates from 6.75% to 7% on terms of two years to under three years. A 25 basis point increase. On tenures of three years to ten years, a further 25 bps increase will exist.. Which brings the rate from 6.25% to 6.50%.
For FDs with tenures of less than a year, interest rates are constant. SBI is still offering 5.75% on terms of 211 days or less to less than a year. 5.25% on terms of 180 days to 210 days, 4.50% on terms of 46 days to 179 days, and a 3% rate on terms of 7 days to 45 days.
FD Rates for Senior citizens:
Similar to the general category, senior citizens’ interest rates on fixed-term deposits under Rs. 2 crore have increased for terms starting at 1 year and higher. However, compared to the general category, seniors typically receive greater interest rates on FDs.
SBI increased the FD rates for senior citizens by 25 bps annually during the course of two years. From 7.25% to 7.50%, the rates have increased. On tenure of five years or more and up to ten years, a comparable increase was made to 7.50% from the prior 7.25%. The highest interest rate that SBI has ever provided to senior citizens is this one.
Additionally, SBI increased rates from the prior 6.75% to 7% on 3 years to less than 5 years of tenure by another 25 basis points. The 1 year to less than 2 year rate is raised by 5 basis points to 7.30% from the previous 7.25%.
SBI new Tenure Scheme
SBI has also developed a unique “400 days” tenor arrangement, under which it would begin offering a 7.10% APR on February 15. The deadline for this programme is March 31, 2023.