SBI Raises Fixed Deposit (FD) Interest Rates
The new interest rates are applicable on retail deposits below Rs 1 crore.
New Delhi: The State Bank of India has hiked the interest rates on fixed term deposits by up to 10 basis points.
The new rate, which is effective from July 30, is applicable on retail deposits below Rs 1 crore. Under the revised rate structure, the deposits for 1 year to 2 years will now accrue 6.7 percent as against 6.65 percent earlier.
For the senior citizens, the new rate is 7.2 percent from 7.15 percent earlier. For the investments from 2 years to 3 years, the interest rate is revised to 7.3 percent from 7.15 percent.
“The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on “SBI Tax Savings Scheme 2006(SBITSS)” Retail Deposits and NRO deposits shall be aligned as per the proposed rates for domestic retail term deposits. However, NRO deposits of Staff are not eligible for additional 1% interest otherwise applicable to staff domestic retail deposits, these rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks,” SBI said in a statement.
The revision in fixed deposit interest rates by SBI comes ahead of Reserve Bank of India’s third bi-monthly policy review, which is scheduled to be released on August 1.