State Bank of India (SBI), India's largest public lender, on Wednesday (November 28) increased interest rates on fixed deposits (FDs) with maturity periods of one to two years. This revision in FD interest rates comes after other major banks including ICICI Bank and HDFC Bank increased their interest rates.
The public lender said on its website that SBI FD interest rates have been increased by 0.05-0.10 per cent. A single basis point is equivalent to 0.01%. The lender also informed on its website that the change in FD interest rates will be applicable to all deposits below Rs 1 crore from today.
People generally invest in FDs because they are safe. Specifically, invest in FDs offered by public sector banks such as Punjab National Bank (PNB), State Bank of India, etc. Financial advisors suggest individuals invest in FDs as they offer fixed interest rates on deposits, which are often higher than the interest rates compared to regular savings accounts.
Check new rates
After the recent revision, the bank is offering an interest rate of 6.80% on FDs with maturity period of 1 or 2 years. The previous interest rate was 6.7%. The interest rate on SBI FD with a maturity of 1 to 2 years for the elderly also rose to 7.30%.
Check out the chart below
maturity | Past rate (%) | Current rate (%) |
7 to 45 days | 5.75 | 5.75 |
46 to 179 days | 6.25 | 6.25 |
180 to 200 days | 6.35 | 6.35 |
211 days to less than 1 year | 6.40 | 6.40 |
1 to less than 2 years | 6.70 | 6.80 |
2 to less than 3 years | 6.75 | 6.80 |
More than 3 years but less than 5 years | 6.80 | 6.80 |
5 to 10 years | 6.85 | 6.85 |
Individuals should note that public lenders have not changed the interest rates for FDs with different maturity periods. Not only SBI but almost all private and public banks offer FDs with various maturities ranging from 7 days to 10 years.
SBI FDs with maturities between 7 and 45 days remained unchanged at 5.75%. For maturity periods between 46 and 179 days, the FD interest rate is fixed at 6.25%.
The interest rate of SBI FDs with a maturity of 180 to 210 days also remains unchanged at 6.35%. Lastly, the interest rate of SBI FD with maturity of 211 days is fixed at 6.40%.
For SBI FDs with higher maturity periods of 3 to less than 5 years and 5 to 10 years, the interest rate is fixed at 6.80% and 6.85% respectively.
For senior citizens, the bank is also offering 50 basis points or an additional 0.5% interest rate on all fixed deposits for all maturity periods.
Additionally, those holding FDs with a minimum lock-in period of five years are eligible for tax benefits under Section 80C (Investment Allowance) of the Income Tax Act.
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