The development comes a week after the Reserve Bank Of India hiked the key repo rate by 50 bps at 4.9 per cent in an effort to tame inflation
The State Bank of India has hiked the interest rate of fixed deposits (FD) by up to 20 basis points (bps) with effect from June 14, 2022, for deposits below Rs 2 crore for certain tenors. According to the SBI website, the rates have been hiked for the FD term above 211 days.
The FD rates for the term ranging from 7 days to 45 days, 46 days to 179 days, and 180 days to 210 days, have remained unchanged at 2.90 per cent, 3.90 per cent, and 4.40 per cent, respectively.
However, for the term ranging from 211 days to less than 1 year, the rates have been hiked from 4.40 per cent to 4.60 per cent. For the term ranging from 1 year to less than 2 years, FD rates have been hiked from 5.10 per cent to 5.30 per cent. For the term ranging from 2 years to less than 3 years, the rates have been hiked from 5.20 per cent to 5.35 per cent.
Notably, for the term ranging from 3 years to less than 5 years the rates have remained unchanged at 5.45 per cent, whereas for the term ranging from 5 years and up to 10 years, the rates have remained unchanged at 5.50 per cent.
| Tenors | Old FD Interest Rates | New FD Interest Rates Wef June14,2022 | Old FD Rates For Senior Citizens | New FD Rates For Senior Citizens Wef June 14, 2022 |
| 7 days to 45 days | 2.90 | 2.90 | 3.40 | 3.40 |
| 46 days to 179 days | 3.90 | 3.90 | 4.40 | 4.40 |
| 180 days to 210 days | 4.40 | 4.40 | 4.90 | 4.90 |
| 1 year to >2 years | 5.10 | 5.30 | 5.60 | 5.80 |
| 2 years to >3 years | 5.20 | 5.35 | 5.60 | 5.80 |
| 3 years to >5 years | 5.45 | 5.45 | 5.95 | 5.95 |
| 5 years to upto 10 years | 5.50 | 5.50 | 6.30 | 6.30 |
For senior citizens and SBI pensioners aged above 60 years, the FD rates for the term ranging from 7 days to 45 days, 46 days to 179 days, and 180 days to 210 days, have remained unchanged at 3.40 per cent, 4.40 per cent, and 4.90 per cent, respectively.
However, for the term ranging from 211 days to less than 1 year, the rates have been hiked from 4.90 per cent to 5.10 per cent. While the rates for the term ranging from 1 year to less than 2 year have been hiked from 5.60 per cent to 5.80 per cent, the rates for the term ranging from 2 years to less than 3 years have been hiked from 5.70 per cent to 5.85 per cent.
Notably, for the term ranging from 3 years to less than 5 years, the rates have remained unchanged for senior citizens at 5.95 per cent and for the term ranging from 5 years and up to 10 years, the rates have remained unchanged at 6.30 per cent.
The development comes a week after the Reserve Bank Of India hiked the key repo rate by 50 bps at 4.9 per cent in an effort to tame inflation. Following this, several Indian banks such as Bandhan Bank, RBL bank, and IndusInd bank have hiked the interest rates on FDs for senior citizens. SBI had last hiked the interest rates on FD in February 2022. According to reports, over the past six years, the FD interest rates for State Bank Of India have fallen by 40 per cent from the peak level of 9 per cent in September 2014 to 5.4 per cent in May 2020.