SBI fixed deposit rates: The State Bank of India (SBI) has hiked fixed deposit rates on select short-term maturity up to 25-75 basis points, a move likely to be followed by other lenders. SBI has implemented rate adjustments focusing on deposits below Rs 2 crore. The country’s biggest lender has raised rates across different tenures, including fixed deposits maturing within 46 days to 179 days, 180 days to 210 days, and 211 days to less than 1 year.
For term deposits of 46-179 days, the rate has been increased by 75 basis points to 5.50 per cent, as against the earlier 4.75 per cent, as per the revised figure posted on the SBI website. There has been a 25 basis point increase in the other two maturity buckets — 180-210 days and 211 days to less than 1 year, to 6 per cent and 6.25 per cent respectively. The new rates are effective from May 15, 2024.
CHECK REVISED RATES HERE:
| Tenors | Revised rates for public | Revised rates for senior citizens |
| 7 days to 45 days | 3.5% | 4% |
| 46 days to 179 days | 5.50% | 6% |
| 180 days to 210 days | 6% | 6.50% |
| 211 days to less than 1 year | 6.25% | 6.75% |
| 1 year to less than 2 years | 6.8% | 7.3% |
| 2 years to less than 3 years | 7% | 7.5% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years and up to 10 years | 6.5% | 7.50% |
RBI keeps repo rate unchanged
The recent adjustments follow the decision by RBI Governor Shaktikanta Das-led monetary policy committee (MPC) in April 2024 to maintain the repo rate at 6.5 per cent for the seventh consecutive time. Notably, prior to this pause, the central bank had implemented six consecutive rate hikes, amounting to a total increase of 250 basis points, until April 2023. In his October 2023 policy statement, Das highlighted that despite the 250 basis point hike in repo rates, this escalation had not been entirely reflected in bank deposit rates.
During the period of repo rate hikes by the RBI, banks progressively adjusted their fixed deposit (FD) interest rates in line with the central bank’s actions, albeit with some lag in transmission. Some banks initially delayed raising their FD rates, but they have subsequently been increasing them to align with the RBI’s policy measures.
ALSO READ: RBI keeps repo rate unchanged at 6.5% for the fifth time in a row; no hike in home loan rates