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The largest public sector bank, State Bank of India (SBI) has raised its interest rates by 10-20 basis points on fixed deposits below ₹2 crore. The revised rates have come into effect from October 15. Senior citizens are the biggest beneficiary of this FD rate hike. However, there is a certain category of elderlies who receive an additional 1% on FD rates applicable. At maximum, these certain categories can earn up to 7.65% which is an inflation-beating return.
To senior citizens, SBI is generally offering a maximum rate of 6.65% on tenures between 5 years to 10 years on FDs effective from October 15 compared to the previous 6.45%. The bank offers 6.3% on 3 years to less than 5 years tenures from earlier 6.10%, while the rate is 6.15% on 2 years to less than 3 years tenures from 6%, and 6.10% rate is offered on 1 year to less than 2-years tenures from previous 5.95%.
An elderly can earn up to 5.20% and 5.15% on tenures of 211 days to less than 1 year and 180 days to 210 days tenures compared to their previous 5.10% and 5.05% respectively. For short-term periods, the FD rate is 4.5% versus the previous 4.40% on 46 days to 179 days tenures, and 3.50% versus the previous 3.40% on 7 days to 45 days tenures.
However, on its website, SBI said, the interest rate payable to SBI Staff and SBI pensioners will be 1% above the applicable rate.
Further, the bank stated that the rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%).
This would mean, that senior citizens who are SBI pensioners will get a maximum of 7.65% (6.65% + 1%) on 5 years and up to 10 years tenures.
SBI has also launched a special “ SBI Wecare” deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 basis points (over & above the existing 50 basis points as detailed in the above table) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. The SBI Wecare deposit scheme stands extended up to 31st March 2023.
Also, the bank has introduced a specific tenor of “1000 days” at an ROI of 6.10 % with effect from August 15, 2022, for 75 days.
The revised rates will be applicable to fresh deposits and renewals of maturing deposits.
However, NRO deposits of Staff are not eligible for an additional 1% interest otherwise applicable to staff domestic retail deposits, these rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks, as per SBI.
To the general category, SBI is offering interest rates ranging from 3% to 5.85% on FDs below ₹2 crore.
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