Good news! SBI hikes interest rates on fixed deposits above 2 years

Good news for SBI customers and also for those looking to invest in bank fixed deposits. The State Bank of India, India’s largest bank, has increased the interest rates on its retail domestic term deposits (below Rs 1 crore) by up to 25 bps, with effect from March 31, 2018. However, the interest rates have been revised only on the fixed deposits of 2 years and more.

For instance, while term deposits of 2 years to less than 3 years will now earn 6.60% interest as against 6.50% earlier, deposits of 3 years to less than 5 years will fetch 6.70% interest as against 6.50% earlier and term deposits of 5 years and up to 10 years will earn 6.75% interest as against 6.50% before. Similarly, for senior citizens, while term deposits of 2 years to less than 3 years will earn 7.10% interest as against 7.00% earlier, deposits of 3 years to less than 5 years will fetch 7.20% interest as against 7.00% earlier and term deposits of 5 years and up to 10 years will earn 7.25% interest as against 7% before. Minor revisions have also been made in the interest rates on domestic bulk term deposits of Rs 1 crore and above.