SBI hikes rates on fixed deposits by 10-15 bps on tenors above 2 years to 10 years; Stock rises over 1%

18 Feb 2022 , 01:50 PM

The largest lender, State Bank of India (SBI) increased fixed deposits interest rates for tenures above 2 years up to 10 years. The rates were hiked by 10 to 15 basis points and senior citizens were the biggest beneficiary of the development. With this, SBI has made deposits for the long-term period attractive.

For the general category, SBI increased deposit rates by 10 basis points each to 5.20% on 2 years to less than 3 years tenure and 5.50% on 5 years and up to 10 years tenure from previous 5.10% and 5.40% respectively. The rates were hiked by 15 basis points to 5.45% on 3 years to less than 5 years tenure from the previous 5.30%.

For senior citizens category, SBI raised the rates by 10 basis points to 5.70% on 2 years to less than 3 years tenure from earlier’s 5.6%, and by 10 basis points to 6.30% on 5 years and up to 10 years tenure from previous 6.20%. The rate was hiked by 15 basis points to 5.95% on 3 years to less than 5 years tenure from the previous 5.80%.

The new rates have come into effect from February 15, 2022.

The rates of the remaining tenures remained unchanged.

That said, in a general category, SBI continues to offer 2.9% for 7 days to 45 days tenure, 3.9% on 46 days to 179 days tenure, 4.4% on 211 days to less than 1-year tenure and 5.10% on  1 year to less than 2 years tenure.

Similarly, SBI’s rates on senior citizens for less than 2 years tenure remain unchanged. In this category, SBI provides 3.4% on 7 days to 45 days tenure, 4.4% on 46 days to 179 days tenure, 4.90% each was offered on 180 days to 210 days tenure and 211 days to less than 1 year.

At around 1.48 pm, SBI was trading at Rs518.75 per piece up by 1.16% on BSE. The stock was near the day’s high of Rs520.85 per piece.