State Bank of India (SBI), has increased interest rates on Fixed Deposits (FD) with effect from 15 June 2022. The bank has also raised the lending rates.

Interest rates on Fixed Deposits have been increased by the country’s largest public-sector bank. On June 14, the bank announced its new increased rates which will be brought into effect from June 15. The interest rates on the Marginal Cost of Funds based on Lending Rates (MCLR) have also been increased. 

After RBI increased the repo rate in its recent MPC meeting, banks have made significant changes. The repo rate was raised by 0.5 percent. The change in repo rate has brought a positive change for the investors interested in Fixed Deposits. The interest rate is increased on deposits up to ₹2 crores as well as on deposits above ₹2 crores. The rates have been increased by up to 75 basis points on short-term as well as long-term deposits. Apart from this, the bank has also raised the lending rate on MCLR by 0.2 basis points. Those will also be brought into effect from June 15. 

Interest Rates on Fixed Deposits. 

For deposits below ₹2 crores: The interest rates for deposits having a period of 7 days to 45 days, 46 days to 179 days, and 180 days to 210 days have remained unchanged at 2.90, 3.90, and 4.40 percent respectively. For 211 days to one year, the interest rate has been increased by 0.20 percent resulting in the new rate of 4.60 percent. For senior citizens, this rate is 5.10. For investments of more than 1 year to less than 2 years, the rate has increased to 5.30 percent and 5.80 percent for senior citizens. Deposits made for more than 2 years to less than 3 years, the rate is 5.85 for senior citizens and 5.35 for others. For deposits made for a period of more than 3 years to less than 5 years and from 5 years to 10 years, the rates will be the same at 5.45 and 5.50 respectively with 0.50 percent more for senior citizens. 

For deposits above ₹2 crores: The rate is increased for periods ranging from 7 days to investments done for 2 years. The interest rate for deposits from 7 days to 45 days the rate was 3 percent and now has been increased by 50 basis points to 3.50 percent. For senior citizens, this rate will be 4 percent. For deposits from 46 days to 179 days the interest rates are 4 present and 4.50 percent for citizens and senior citizens respectively. For a period of 180 days to 210 days, the rate of interest is increased by 75 basis points i.e. the new interest rate is 4.25 percent and for senior citizens, it is 4.75 percent. Similarly, for a period of 211 days to 1 year, the rate is increased from 3.75 percent to 4.50 percent and for senior citizens, it is changed to 5 percent from 4.25 percent. For deposits from 1 year to less than 2 years the interest rate is changed to 4.75 percent and 5.25 percent for senior citizens. The interest rates will remain unchanged for deposits from 2 years to 3 years, 3 years to 5 years, and 5 years to 10 years. 

The interest rate for SBI’s employees and pensioners will be 1 percent more than the applicable rate. Senior citizens can avail 0.3 percent interest rate under the “SBI Wecare” scheme whose registrations will be open till 30 September 2022. The bank has stated that the new rates will apply to fresh deposits and the renewal of maturing deposits. For deposits above ₹2 crores, the premature penalty for all tenors will be charged at one percent.

The Fixed deposits can be made by visiting the nearest SBI branches as well as through their website.