SBI Surprises The Market: Hikes Interest Rates On, But Only For These Deposits (Check Full Details)

Recently banks hiking their fixed deposit interest rates. Jumping on the bandwagon now is the State Bank of India.

India’s largest public sector has hiked fixed deposit interest rates for bulk deposits of Rs 2 crore and above and the new rates have come into effect.

SBI Increases Interest Rates For Bulk Deposits

After the latest revision, SBI FD interest rates for bulk deposits was increased by 40 basis points to as much as 90 basis points. This comes after the RBI increasing its key lending rate by 40 basis points to 4.40 per cent. This was done to address the issue of rising inflation in India.

The lender said on its website that the latest SBI FD interest rates have come into effect from May 10.

The maximum interest rate will be enjoyed by depositors who have or will open an FD account in the 5–10-year tenure and three years to less than 5 years’ tenure. As per the bank’s website, there is an increase of 90 bps on these tenures. Due to this increase, the interest rates on such deposits have increased from earlier 3.60 per cent to 4.50 percent.

SBI said that the revised interest rates will now apply to new deposits as well as renewals of maturing deposits. NRO term deposit interest rates will be matched with domestic term deposit interest rates.

Revised Interest Rates

Following are the Revised interest rates on bulk fixed deposits for general public of Rs 2 crore and above at the SBI from May 10, 2022:

1. 7 days to 45 days: Old Rates – 3.00 per cent; New Rates – 3.00 per cent
2. 46 days to 179 days: Old Rates – 3.00 per cent; New Rates – 3.50 per cent
3. 180 days to 210 days: Old Rates – 3.10 per cent; New Rates – 3.50 per cent
4. 211 days to less than 1 year: Old Rates – 3.30 per cent; New Rates – 3.75 per cent
5. 1 year to less than 2 years: Old Rates – 3.60 per cent; New Rates – 4.00 per cent
6. 2 years to less than 3 years: Old Rates – 3.60 per cent; New Rates – 4.25 per cent
7. 2 years to less than 5 years: Old Rates – 3.60 per cent; New Rates – 4.50 per cent
8. 5 years and up to 10 years: Old Rates – 3.60 per cent; New Rates – 4.50 per cent

Post the RBI’s announcement on May 4, several banks have increased their fixed deposit interest rates.

Many banks have raised their interest rates on fixed deposits across multiple tenor baskets for retail customers. These include Bandhan Bank, Kotak Mahindra Bank, Jana Small Finance Bank, Bank of Baroda, ICICI Bank and Punjab National Bank.

The SBI FD interest rate hike also comes as a direct result of the RBI’s move.