State Bank of India (SBI) has hiked its fixed deposit interest rates for deposits below ₹2 crore, effective from December 27, joining a broader trend of higher interest rates. This adjustment brings notable changes across various tenures.
What Happened: For short-term investors, SBI has boosted interest rates for deposits maturing in seven days to forty-five days by an impressive 50 basis points, resulting in a revised rate of 3.50%. The trend continues for deposits spanning 46 days to 179 days, witnessing a 25 basis point increase, now guaranteeing an interest rate of 4.75%.
Mid-term investors will also gain enhanced interest rates for deposits, with rates for tenures of 180 days to 210 days raised by 50 basis points, offering a 5.75% interest rate. Additionally, tenors ranging from 211 days to less than one year have been hiked by 25 basis points, providing investors with a new rate of 6%.
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While maintaining rates for fixed deposits maturing in one to less than two years, two to less than three years, and five to ten years, SBI has introduced increments for tenors of three years to less than five years, providing a 25 basis point boost and offering an enhanced interest rate of 6.75%.
| Tenure Range | General FD Rate (%) | Senior Citizen FD Rate (%) |
|---|---|---|
| 7 days to 45 days | 3.50 | 4.00 |
| 46 days to 179 days | 4.75 | 5.25 |
| 180 days to 210 days | 5.75 | 6.25 |
| 211 days to less than 1 year | 6.00 | 6.50 |
| 1 Year to less than 2 years | 6.80 | 7.30 |
| 2 years to less than 3 years | 7.00 | 7.50 |
| 3 years to less than 5 years | 6.75 | 7.25 |
| 5 years and up to 10 years | 6.50 | 7.50 |
Everyone’s doing it: This strategic move by SBI aligns with a broader trend, making it the fifth bank in December 2023 to revise FD interest rates.
Following the footsteps of the Bank of India, Federal Bank, Kotak Mahindra Bank and DCB Bank, SBI’s rate adjustments come despite the Reserve Bank of India (RBI) maintaining the key repo rate at 6.5% for the fifth consecutive time on December 8 monetary policy meeting.
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