Recently, the State Bank of India (SBI) raised interest rates on fixed deposits (FDs) of less than ₹2 crore. The new rates are with effect from December 27.
Also, this rate hike by SBI, the country’s largest bank and a private sector lender, is applicable on all but three FD tenures: one year to less than two years, two years to less than three years, and five years to ten years.
The previous such revision took place in February.
The new interest rates are…
For regular customers
| FD maturity period | New interest rate |
| 7 days-45 days | 3.50% |
| 46 days-179 days | 4.75% |
| 180 days-210 days | 5.75% |
| 211 days-<1 year | 6% |
| 1 year-<2 years | 6.80% (unchanged) |
| 2 years-<3 years | 7% (unchanged) |
| 3 years-<5 years | 6.75% |
| 5 years-up to 10 years | 6.50% (unchanged) |
For senior citizens
| FD maturity tenure | New interest rate |
| 7 days -45 days | 4% |
| 46 days-179 days | 5.25% |
| 180 days-210 days | 6.25% |
| 211 days-<1 year | 6.50% |
| 1 year-<2 years | 7.30% (unchanged) |
| 2 years-<3 years | 7.50% (unchanged) |
| 3 years-<5 years | 7.25% |
| 5 years-up to 10 years | 7.50% (unchanged) |
Have other banks too hiked interest rates on FDs?
This month, four other lenders besides SBI raised interest rates on their respective term deposits: Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank.
The hikes come even as the Reserve Bank of India (RBI), in its final Monetary Police Committee (MPC) meeting of the year, held in the first week of December, kept the key repo rate unchanged at 6.5%.
