State Bank of India (SBI) has officially increased its FD (Fixed Deposit) rates with effect from the 30th of July, 2018. The revised interest rates will apply for fresh deposits and also the renewals of deposits which are maturing. The FD rates have been increased by 5 basis points-10 basis points, thereby ensuring an increase of 0.05%-0.1% as per reports.
SBI is now providing 6.70% in case of term deposits between 1-2 years which is higher than the earlier rate of 6.65%. For deposits between 2-3 years, the rates have been increased to 6.75% from 6.65% previously. SBI has also increased rates of interest for senior citizens which have increased to 7.20% from 7.15% for 1-2 years and for a period of 2-3 years, this has gone up to 7.25% from 7.15%.
However, rates of interest have been reduced for bulk term deposits of shorter tenors, lowering it to 6.70% from 7% earlier on deposits of amounts varying between Rs. 1-10 crore for 1-2 years. In case of senior citizens, for a similar amount for the same time period, the rates have come down to 7.20% from 7.50% previously.
SBI has already officially stated that revised interest rates will be applying immediately from yesterday onwards. This should come as a welcome development for prospective applicants for FDs and also existing customers whose deposits will be maturing soon.