State Bank of India increases fixed deposit rates by up to 0.75%
Here's what you need to know about the increased FD interest rates by SBI
image for illustrative purpose
In a move that impacts savers and investors, the State Bank of India (SBI), the country's largest lender, has announced an increase in its fixed deposit (FD) rates by up to 0.75%. This decision comes amidst changing economic conditions and aims to offer more attractive returns to depositors. With this adjustment, SBI seeks to strike a balance between maintaining competitiveness in the market and ensuring sustainable profitability.
SBI has implemented a hike in FD interest rates across both retail and bulk deposits. For deposits below Rs 2 crore, the bank has increased rates by 75 basis points (bps) for maturity periods ranging from 46 days to 179 days, elevating the rate to 5.50%. Senior citizens in the same bracket can now enjoy a rate of 6%. Additionally, the rates for deposits maturing between 180 days and 210 days have been raised by 25 bps to 6% for general citizens, while senior citizens receive a rate of 6.25%. For periods spanning from 211 days to less than a year, rates have surged by 25 bps to 6.25% for general citizens and 6.75% for senior citizens.
Bulk deposits, exceeding Rs 2 crore, have also seen an increase in interest rates. For durations between 7 and 45 days, rates now stand at 5.25% for general citizens and 5.75% for seniors, following a rise of 25 bps. Furthermore, the bank has elevated rates by 50 bps for general citizens and seniors with maturity periods between 46 days and 179 days, reaching 6.25% and 6.75%, respectively.
SBI has adjusted rates across various maturity periods to cater to the needs of different investors. For durations spanning from 180 days to 210 days, rates for general citizens have climbed by 10 bps to 6.60%, while senior citizens receive a rate of 7.10%. Additionally, rates for tenures between 1 year and less than 2 years have been raised by 20 bps to 7%, while for tenures between 2 years and less than 3 years, rates now stand at 7% for general citizens and 7.50% for seniors. These revisions offer depositors enhanced earning potential and highlight SBI's commitment to providing competitive returns on fixed deposits.
SBI's decision to raise FD rates underscores its commitment to offering competitive returns to depositors while navigating the evolving economic landscape. As individuals assess their investment options, staying informed about the latest FD rates and considering their financial objectives will be paramount. By making prudent investment decisions aligned with their goals, investors can strive for long term financial security and wealth creation.
