State Bank of India, the nation’s largest lender, has increased interest rates by 20-40 basis points on bulk fixed deposits (FDs) of more than ₹2 core with effect from 10 March, 2022.
The SBI website says the bank has raised the interest rate on FDs worth over ₹2 crore with terms ranging from 211 days to less than 356 days by 20 basis points.
With effect from 10 March this year, these FDs will now earn 3.30%, up from 3.10%. Senior citizens will earn 3.80%, up from 3.60%.
The bank says for tenures from 1 year and up to 10 years the rates have been increased by 40 basis points to 3.60% from 3.10%. Senior citizens will earn 4.10% from 3.60%.
The revised interest rates will now apply to new deposits as well as renewals of maturing deposits, the SBI said. NRO term deposit interest rates will be matched with domestic term deposit interest rates.
These interest rates will also apply to domestic term deposits held by cooperative banks.
FD interest rates: Below ₹2 crore
For FD tenure of two years to less than three years, interest rate has been hiked by 10 basis points to 5.20%, for three year to less than five year it has been increased by 15 basis points to 5.45%, the SBI website says.
For FD tenure of five years and up to 10 years, the interest rate has been hiked by 10 basis points to 5.50% with effect from 15 February this year.
Also, premature penalties for bulk term deposits will be 1% for all tenors. This will apply to all new deposits, as well as renewals, the SBI says.
The penalty for premature withdrawal of a term deposit is not reduced or waived at the discretion of the bank.
FD interest rates for senior citizens
Senior citizens will get an additional 0.50% rate over and above the usual rate across all tenors. Senior citizens will now get a 3.5% to 4.10% interest rate on deposits maturing in seven days to 10 years after the latest revision.