The
State Bank of India (SBI) on Wednesday, December 27, raised interest rates on certain fixed deposits (FDs) by up to 50 basis points or 0.50%. The hike spans various deposit brackets, marking the bank's first significant adjustment in the past ten months.
The rate adjustments target deposits below ₹2 crore.
Notably, SBI has increased rates across various tenures, excluding FDs maturing within one year to less than 2 years, 2 years to less than 3 years, and 5 years to 10 years.
The revised rates entail 50 basis points (bps) rise for deposits maturing in seven days to forty-five days, now fetching 3.50% interest rate. Similarly, for 46 days to 179 days, the bank has raised rates by 25 bps to 4.75% interest.
Fixed deposits ranging from 180 days to 210 days will yield increased interest rate of 5.75% after a 50 bps hike. Meanwhile, the 211 days to less than 1 year tenors will now provide a 6% interest rate following a 25 bps increase.
For
longer-fixed deposits, SBI's adjustments have boosted rates by 25 bps, reflecting an interest rate of 6.75% for FDs maturing in 3 years to less than 5 years.
Here's a look at SBI's fixed deposit interest rates:
| Tenors | Revised rates for public | Revised rates for senior citizens |
| 7 days to 45 days | 3.5% | 4% |
| 46 days to 179 days | 4.75% | 5.25% |
| 180 days to 210 days | 5.75% | 6.25% |
| 211 days to less than 1 year | 6% | 6.5% |
| 1 Year to less than 2 years | 6.8% | 7.3% |
| 2 years to less than 3 years | 7% | 7.5% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years and up to 10 years | 6.5% | 7.50% |
(Source: SBI)
With this, SBI joins the list of banks that have raised their interest rates on fixed deposits this December, including Bank of India, Federal Bank, Kotak Mahindra Bank and DCB Bank.
The development comes after RBI Governor Shaktikanta Das-led monetary policy committee (MPC) on December 8, 2023, kept the repo rate unchanged for the fifth time at 6.5%.
However, the central bank earlier implemented six consecutive rate hikes, totalling 250 basis points, until the pause in April.
During the period when the RBI increased the repo rate, banks gradually followed suit by raising their FD interest rates, although there was some delay in transmission. Banks that initially delayed raising their FD rates have since been increasing them to catch up with the RBI's policy actions.
For perspective, when the repo rate increases, FD interest rates follow suit, and when the repo rate decreases, FD interest rates decline as well.
