PremiumIndia's largest public sector banker, State Bank of India (SBI) has finally joined the trend of hiking fixed deposit rates after RBI's 35 bps rate hike in December policy. With effect from December 13, SBI has hiked both retail deposits and bulk FD interest rates. Under the bulk FDs which is for deposits from ₹2 crore and above, SBI has hiked rates by a whopping 50 bps to 100 bps across tenures. A general category depositor will earn as high as 6.50%, while senior citizens will get a maximum 7% rate on their bulk FDs. Further, the bank hiked interest rates on retail FDs below ₹2 crore by 15 bps to 65 bps.
SBI bulk FD rates for the general public:
The bank has hiked the rate by 50 bps to 6.50% on 1 year to less than 2 years tenure from the earlier 6%, while the highest hike of 100 bps is given on 180 days to 210 days tenure to 5.50% from the previous 5.5%.
Further, the bank has hiked rates by 75 bps on 211 days to less than 1-year tenure to 5.75% from the previous 5%. Also, the rate is set at 5.75% on tenures from 2 years to less than 5 years compared to the previous rate of 5.25% --- a hike of 50 bps here. On the highest tenure of 5 years and up to 10 years, the bank hiked the bulk FD rate by 50 bps to 5.5% from the previous 5%.
On the shorter tenures, the bank hiked the FD rate by 75 bps each to 5% on 46 days to 179 days from earlier 4.25%; and 4.25% on 7 days to 45 days from the previous 3.50%.
SBI bulk FD rates for senior citizens:
To senior citizens, the highest rate in bulk FD would be 7% effective from December 13 -- rising by 50 bps from the earlier 6.50%. While the highest hike of 100 bps would also be on 180 days to 210 days tenure to 6% from the previous 5%.
The bank hiked rates by 50 bps each to 6.25% on FDs maturing from 2 years to less than 5 years. While the rate has been increased by 50 bps for elderlies looking for tenures from 5 years and up to 10 years to 6% from the previous 5.5%. The rate increased 75 bps to 6.25% on 211 days to less than 1-year tenure from the previous 5.5%. Also, the bank hiked the FD rate by 75 bps each on 46 days to 179 days tenure to 5.5% from the previous 4.75%, and on 7 days to 45 days tenure to 4.75% from the earlier 4%.
In its note, SBI said that the premature penalty for Bulk Term Deposits for all tenors will be 1%. It will be applicable for all new deposits including renewals.
Further, SBI stated that the revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks.
SBI retail FDs:
The rates here are hiked by 15 bps to 65 bps for certain tenures.
SBI is offering an FD rate of 6.75% to the general public on tenures from 1 year to less than 3 years, while senior citizens earn up to 7.25% on these tenures. Further, senior citizens will also get 7.25% on FDs maturing from 5 years to 10 years, however, the general public will receive 6.25%. The rate is set at 6.25% for the general public on tenures from 3 years to less than 5 years from the previous 6.10%, while senior citizens will earn 6.75% for the same from earlier 6.60%. Lastly, the bank is giving 5.75% to the general public and 6.25% to elderlies on tenures 211 days to less than 1 year.
On the other hand, the rates are kept unchanged on tenures from 7 days to 210 days.
SBI stated that the interest rate payable to SBI Staff and SBI pensioners will be 1% over and above the applicable rate shown in the above table.