Mumbai: The largest public sector bank in the country, State Bank of India (SBI) has raised its interest rates on fixed deposits below Rs 2 crore. The interest rate is hiked by 10 to 20 basis points.
Senior citizens are the biggest beneficiary of this rate hike. There is a certain category of senior citizens who receive an additional 1% on FD rates applicable. At maximum, these certain categories can earn up to 7.65%.
Senior citizens will get an interest rate of 6.65% on tenures between 5 years to 10 years. The bank offers 6.3% on 3 years to less than 5 years tenures, while the rate is 6.15% on 2 years to less than 3 years tenures and 6.10% rate is offered on 1 year to less than 2-years tenures.
Senior citizens can earn up to 5.20% and 5.15% on tenures of 211 days to less than 1 year and 180 days to 210 days tenures respectively. For short-term periods, the FD rate is 4.5% on 46 days to 179 days tenures and 3.50% on 7 days to 45 days.
The interest rate payable to SBI Staff and SBI pensioners will be 1% above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%).