The good news for SBI customers is that by changing this rule, they will now benefit.
State Bank of India (SBI) has once again given good news for its lakhs of customers. If you also have an account in SBI then this news is for you. The interest rate on fixed deposits (FD interest rate) has been increased once again by the bank. SBI, the largest public sector bank, has hiked interest rates on deposits of Rs 2 crore and above, as per the updated information on the bank’s official website.
The new rates will be applicable from May 10
The rates increased by the bank have come into effect from Tuesday 10 May. However, the bank did not raise interest rates on short term fixed deposits (7 to 45 days). The bank has increased the interest rates by 50 basis points on FDs maturing in 46 to 149 days. At the same time, deposits of more than one year and less than two years have been increased by 40 basis points.
Highest interest on FD of 5 to 10 years
Interest rates on deposits of more than two years and less than three years have been increased by 65 basis points. Similarly, the highest interest has been increased on FDs of three to five years and 5 to 10 years. Customers will now get 4.5 percent annual interest on FDs of both these tenors. Earlier the interest rate was 3.6 percent.
Repo rate hiked by 40 basis points
After the sudden increase of 40 paise in the repo rate by the Reserve Bank of India (RBI), many banks have increased the interest rates. Let us inform that last week RBI Governor Shaktikanta Das had suddenly announced to increase the repo rate from 4 per cent to 4.40 per cent.
Who will benefit?
The benefit of the revised interest rate by SBI will be applicable on renewal of both new FD and mature FD. The bank pays an additional 50 basis points of interest to senior citizens at the rate of interest for each period. Notably, SBI is offering 3% to 5.5% interest on FDs ranging from 7 days to 10 years. Senior citizens are getting 3.5% to 6% annual interest on these deposits.