The State Bank of India on Wednesday raised interest rates on term deposits of above Rs 1 crore by 100 basis points (equal to one percentage point). Bulk deposits for the 7 to 45-day period will fetch interest at 4.75% instead of 3.75%, effective Thursday, the lender said.
Deposits with a term of 46 to 179 days and 180 to 210 days will now fetch an interest of 4.85% instead of 3.85%, the bank announced. Bulk deposits with a period between 211 days and less than one year will fetch interest of 5% as against 4% earlier. The new interest rate for all deposits with a period of greater than a year is now 5.25% instead of 4.25%, the state-owned lender said.
Deposits below Rs 1 crore
The State Bank of India also reduced interest rates on domestic term deposits of below Rs 1 crore by 25 basis points (or 0.25%) across the board. For a period between 7 and 45 days, the new interest rate will be 5.25% instead of 5.50%. Deposits with a term between 46 days and less than two years will fetch an interest rate of 6.25% as against 6.50% earlier. Deposits with a period of two years or more will earn interest of 6% per annum.
Senior citizens will earn an extra 0.5% on term deposits for every period, irrespective of the amount of deposit, the bank said.