State Bank of India (SBI) has raised its fixed deposit (FD) interest rates, effective from February 15, 2023. SBI customers can now earn up to 7% on their deposits, while senior citizens can earn up to 7.5%. In addition, SBI has introduced a specific tenure scheme of 400 days, where it is offering a 7.10% interest rate. This scheme is valid until March 31, 2023.
SBI has increased the interest rate on deposits maturing between 1 year to less than 2 years to 6.80% from 6.75%. Similarly, it raised the interest rate on tenure of 2 years to less than 3 years to 7%, up from 6.75%. Additionally, the interest rate on FDs maturing in 3 years to less than 10 years has been hiked from 6.25% to 6.50%.
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The bank is also offering a special 'SBI Wecare' deposit for senior citizens. According to SBI's website, senior citizens can earn an additional premium of 50 basis points (bps) over and above the existing 50 bps, i.e., 100 bps over the card rate for the public. This offer is only valid for retail deposits of 5 years and above tenor and is available until March 31, 2022.
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Banks are raising FD interest rates in response to the RBI's recent hikes in the repo rate. Since May, the RBI has raised the repo rate by 250 basis points to 6.50%. The first hike was 40 bps in May, followed by 50 bps in June. The RBI again raised the repo rate by 50 bps in August and then again by 50 bps in September. With another hike of 35 bps in December and 25 bps in February, the total rise comes to 250 bps.
FAQs
Q1: Where is the headquarters of State Bank of India located?
A: The headquarters of State Bank of India is located in Mumbai, India.
Q2: What is a fixed deposit?
A: A fixed deposit (FD) is a type of investment offered by banks and financial institutions, where a specific sum of money is deposited for a fixed period at a fixed interest rate.
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