In a significant move, causing jubilant to investors, the largest public sector bank State Bank of India (SBI) today revised its Fixed Deposit (FD) interest rates hiking it by 5 basis points to 10 basis points, thus raising it from 0.05 per cent to 0.1 per cent. The new rates will be applicable starting from July 30.
This revision makes the bank to offer an interest rate of 6.70 per cent on term deposits of 1 year to 2 years which is up from the existing rate of 6.65 per cent. Meanwhile, for deposits between a time periods of 2-3 years, the rates have been hiked from 6.65 per cent to 6.75 per cent.
The bank in its revision has also hiked the interest rates for senior citizens which has gone up from 7.15 per cent to 7.20 per cent for a period of 1-2 years while that for 2-3 years it has been raised to 7.25 per cent from the existing 7.15 per cent.
Meanwhile, the bank however, slashed the interest rates on bulk term deposits of short tenures bringing it down to 6.70 per cent from 7 per cent on deposits of amounts ranging from Rs 1 crore to Rs 10 crore for a tenure of 1-2 years. For senior citizens for a similar amount in the same period of time the rates have been slashed from 7.50 per cent to 7.20 per cent.