SBI FD Alert! State Bank of India hikes fixed deposit interest rates for these tenors: Check latest rates

New Delhi: State Bank of India, the country's largest public sector bank, has raised fixed deposit interest rates for various tenors. The new SBI FD rates have been in effect since last week. SBI fixed deposit interest rates apply to domestic term deposits of Rs 2 crore or more. This is due to the Reserve Bank of India raising its repo rates by 50 basis points.

The new SBI FD interest rates went into effect on Friday, July 15th. The bank increased its fixed deposit rates for accounts maturing in one to two years from 4.75 percent to 5.25 percent for the general public. For elderly persons, the SBI FD interest rate has been raised by 50 basis points to 5.75 percent for the same tenor. The bank has kept the rates on the other tenors constant. Read More: 

“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 website read. Read More: 

"The prepayment penalty for all tenors of Bulk Term Deposits will be 1%." It will apply to all new deposits, including renewals," it noted.

7 days to 45 days: For General Public - 3.50 per cent; For Senior Citizens - 4.00 per cent

46 days to 179 days: For General Public - 4.00 per cent; For Senior Citizens - 4.50 per cent

180 days to 210 days: For General Public - 4.25 per cent; For Senior Citizens - 4.75 per cent

211 Days to less than 1 year: For General Public - 4.50 per cent; For Senior Citizens - 5.00 per cent

1 year to less than 2 years: For General Public - 5.25 per cent; For Senior Citizens - 5.75 per cent

2 years to less than 3 years: For General Public - 4.25 per cent; For Senior Citizens - 4.75 per cent

3 years to less than 5 year: For General Public - 4.50 per cent; For Senior Citizens - 5.00 per cent

5 years to up to 10 years: For General Public - 4.50 per cent; For Senior Citizens - 5.00 per cent.

During the June meeting of the Monetary Policy Committee, the Reserve Bank of India proceeded to raise repo rates, prompting banks to raise their interest rates as well. This includes a hike in the interest rate on bank fixed deposits. SBI's FD rates have risen in line with those of other banks such as HDFC Bank, ICICI Bank, Punjab National Bank, and others. The RBI is poised to raise interest rates further during its August MPC meeting, since retail inflation stayed above 7% in June, well above the central bank's maximum tolerance range of 6%.