The State Bank of India (SBI) has announced a revision in its fixed deposit (FD) interest rates, effective from today, December 27, 2023.
The increased rates apply to FDs below ₹2 crore, and the adjustments vary across different tenures, signaling a move to attract more investors amid a changing economic landscape.
Key Changes in SBI FD Rates:
7 Days to 45 Days: 3.50%
A significant 50 basis points (bps) hike in interest rates for short-term deposits.
46 Days to 179 Days: 4.75%
A 25 bps increase in rates, offering an attractive 4.75% interest on deposits falling within this tenure.
180 Days to 210 Days: 5.75%
For mid-term deposits, SBI has raised rates by 50 bps, providing a competitive interest rate of 5.75%.
211 Days to Less Than 1 Year: 6.00%
A moderate 25 bps hike in interest rates, ensuring a steady return on investments.
1 Year to Less Than 2 Years: 6.80%
Offering an attractive interest rate of 6.80% for a one to two-year tenure.
2 Years to Less Than 3 Years: 7.00%
A steady increase in rates for mid-term investments, providing a 7.00% return.
3 Years to Less Than 5 Years: 6.75%
A 25 bps hike, aligning with the bank’s strategy to offer competitive rates.
5 Years and Up to 10 Years: 6.50%
Ensuring a balanced approach, SBI has adjusted rates for longer-term deposits.
SBI FD Rates for Senior Citizens:
Senior citizens enjoy an additional 50 bps on the standard rates, making their returns more lucrative.
Other Banks Join the Hike:
SBI follows the lead of other financial institutions, becoming the fifth bank to increase interest rates on term deposits in December 2023. Noteworthy contributors to this trend include Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank.
This collective adjustment in FD rates comes amid the Reserve Bank of India (RBI) maintaining the key repo rate at 6.5% in its recent December 8 Monetary Policy Committee (MPC) meeting.
Axis Bank also Enters the Fray:
Axis Bank has simultaneously revised its fixed deposit interest rates for amounts below ₹2 crore, effective from December 26, 2023, as per the information available on the Axis Bank website.
The move suggests a broader industry shift in response to prevailing economic conditions.
