SBI hikes FD interest rates, now returns up to 6.30% on deposited money

Earlier, 2.90 percent interest was available on FDs of 7 days to 45 days, which is still intact. The interest rates for senior citizens have also not been changed. 3.40 percent interest is being given on FDs maturing in this period.

State Bank hikes FD interest rates (indicative picture)

The country’s largest public sector bank State Bank of India (SBI) has fixed deposit interest rates have been raised. State Bank has made this increase after the recent increase in the repo rate. Although the rates of FDs of all tenors have not been increased, but the rates of some selected fixed deposits have been increased. SBI has increased by 15 basis points and the new rates have come into effect from August 13, 2022. The interest rate on FDs below Rs 2 crore has been increased. After this increase, SBI is giving interest from 2.90 percent to 5.65 percent to its customers on fixed deposits. This rate is for the general public, while senior citizens are being given interest from 3.40 to 6.45 percent on FD.

SBI had earlier increased FD interest rates in June 2022. From August 13, SBI is giving 4.55 percent interest on FDs of 180 days to 210 days. The interest rate on FDs of more than 1 year and less than 2 years has been increased from 5.30 percent to 5.45 percent. The interest rate on fixed deposits of more than 2 years and less than 3 years has been reduced to 5.50 percent. The interest rate on FDs maturing in more than 3 years and less than 5 years has become 5.60 percent. Similarly, the interest rate on FDs ranging from 5 years to 10 years has now been reduced to 5.65 percent.

what is the new interest rate

Talking about the initial FD plan, earlier 2.90 percent interest was available on FDs of 7 days to 45 days, which is still intact. The interest rates for senior citizens have also not been changed. 3.40 percent interest is being given on FDs maturing in this period. FD of 46 to 179 days is getting 3.90 percent interest. No changes have been made in this either. Its interest rate for senior citizens is fixed at 4.40 percent. Keep in mind that the new change has been made only for FDs of less than 2 crores.

How much benefit senior citizens

For senior citizens, FDs of minimum 7 days and maximum 10 years, interest is being paid from 3.40 percent to 6.45 percent. According to State Bank, the new interest rates will be applicable on both new and old fixed deposits. If a person opens an FD of less than 2 crores, then he will get the benefit of new rates according to the maturity period. Also, the old FD rates have also been changed. Interest will also be given on SBI Tax Saving Scheme, Retail Deposit and NRO Deposit at revised rates.

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Benefits of increasing repo rate

The Reserve Bank has recently increased the repo rate by 50 basis points. After this, an increase in FD rates is being seen. The Reserve Bank has so far increased the repo rate by 140 basis points, after which inflation is being seen in the loan. EMIs have increased, but fixed deposit and savings bank account rates are increasing. On one hand retail has become expensive and on the other hand customers are getting more interest on their deposits.