In a move that reverberates across the financial landscape, the State Bank of India (SBI), the nation’s largest bank and a key player in the private sector, has increased interest rates on fixed deposits (FDs) below ₹2 crore. The new rates, effective from December 27, mark a significant adjustment since the previous revision in February.
However, it’s noteworthy that this rate hike is not universal, with three FD tenures exempted: one year to less than two years, two years to less than three years, and five years to ten years.
Here are the revised interest rates for both regular customers and senior citizens:
For Regular Customers:
| FD Maturity Period | New Interest Rate |
|---|---|
| 7 days – 45 days | 3.50% |
| 46 days – 179 days | 4.75% |
| 180 days – 210 days | 5.75% |
| 211 days – <1 year | 6.00% |
| 1 year – <2 years | 6.80% (unchanged) |
| 2 years – <3 years | 7.00% (unchanged) |
| 3 years – <5 years | 6.75% |
| 5 years – 10 years | 6.50% (unchanged) |
For Senior Citizens:
| FD Maturity Tenure | New Interest Rate |
|---|---|
| 7 days – 45 days | 4.00% |
| 46 days – 179 days | 5.25% |
| 180 days – 210 days | 6.25% |
| 211 days – <1 year | 6.50% |
| 1 year – <2 years | 7.30% (unchanged) |
| 2 years – <3 years | 7.50% (unchanged) |
| 3 years – <5 years | 7.25% |
| 5 years – 10 years | 7.50% (unchanged) |
Have Other Banks Followed Suit?
In an interesting turn of events, this month has seen four other prominent lenders join the bandwagon of interest rate hikes on term deposits. Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank have all adjusted their interest rates despite the Reserve Bank of India (RBI) maintaining the key repo rate at 6.5% in its December Monetary Policy Committee (MPC) meeting.
