SBI will increase deposit rates for FDs by up to 50bps

27 Dec 2023 , 02:02 PM

State Bank of India (SBI), a public sector lender, increased deposit rates by as much as 50 basis points starting on December 27. The SBI website has updated its data about interest rates on fixed deposits (FDs) for amounts less than Rs 2 crore.

SBI has raised interest rates on deposits maturing in seven to forty-five days by fifty basis points (bps).

These deposits will now produce an interest rate of 3.50% for 46 to 179 days, with a guarantee of 4.75%, according to a 25 basis point rate hike by the bank. Interest rates on term deposits with a 180–210 day tenor have been hiked by 50 basis points by SBI. The rate of interest pertaining to these FDs will be 5.75%.

The bank raised rates for tenors less than a year by 25 basis points (6 percent) on 211 days. FDs with maturities of three years or fewer will now return a bonus of twenty-five basis points, or 6.75%.

Seniors will get an extra 50 basis points (bps) on their deposits. After the recent increase, SBI now provides rates on deposits maturing in seven days to ten years that vary from 4 percent to 7.5%.

SBI will be the seventh bank to increase term deposit interest rates when it does so in December 2023. This month, Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank all increased their term deposit rates.

In line with the expectations, the Reserve Bank of India (RBI) maintained the benchmark repo rate at 6.5% during the December 8 MPC meeting, marking the fifth consecutive meeting in which it has done so.

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