SBI FD Rates Hiked: The State Bank of India has once again increased interest rates on its fixed deposit accounts, a week after it hiked the same for fixed deposit accounts of short term tenures. This time, the SBI FD rates have been hiked for tenures up to 10 years, the bank said. The state-owned bank’s latest move comes amid a spree of the lenders increasing their fixed deposit interest rates, after a long pause. The latest change of the State Bank of India was announced on the lender’s website, via a chart which displays all the plans for fixed deposits.
SBI FD Interest Rate Hike— Details
The State Bank of India, which is the largest public lender in the country, announced on its website that the new rates of interest for its FDs will be applicable for deposits below Rs 2 crore. This has to be done for deposits with a tenure of seven days to 10 years. The rates have been hiked by 10 basis points or 0.10 per cent, the bank has said. The new rates came into effect from January 22, Saturday, as per the bank’s website.
After the SBI FD interest rate hike, general public will get a 5.10 per cent return, up from 5 per cent, on their fixed deposits below Rs 2 crore. On the other hand, senior citizens will get 5.6 per cent for the same, up from 5.5 per cent earlier. Before the hike earlier in the month, the last time interest rates were revised was January 8 last year, according to the public lender’s website.
Here are the revised interest rates on fixed deposits below Rs 2 crore at the State Bank of India from January 20, 2022:
7 days to 45 days: For General Public – 2.90 per cent; For Senior Cittizens – 3.40 per cent
46 days to 179 days: For General Public – 3.90 per cent For Senior Cittizens – 4.40 per cent
180 days to 210 days: For General Public – 4.40 per cent For Senior Cittizens – 4.90 per cent
211 days to less than 1 year: For General Public – 4.40 per cent For Senior Cittizens – 4.90 per cent
1 year to less than 2 years: For General Public – 5.10 per cent For Senior Cittizens – 5.60 per cent
2 years to less than 3 years: For General Public – 5.10 per cent For Senior Cittizens – 5.60 per cent
3 years to less than 5 years: For General Public – 5.30 per cent For Senior Cittizens – 5.80 per cent
5 years and up to 10 years: For General Public – 5.40 per cent For Senior Cittizens – 6.20 per cent
The rising interest rates is likely to come as good news for depositors who have been earning one of the lowest rates of interest for almost 20 years. If the base rate rises further, we are likely to see a few more increases in rates of interest going forward.
The SBI FD interest rate hike move comes close in heels with that of the HDFC Bank, Axis Bank, ICICI Bank and Canara. This also signals that banks are slowly giving into the trend of hiking interest rates on fixed deposits.