State Bank of India (SBI) has steeply hiked interest rates on domestic retail term deposits and domestic bulk term deposits (TDs) by up to 65 basis points and 100 basis points, respectively, on select tenors.
The new term deposit interest rates are effective December 13. This move comes in the backdrop of deposit growth lagging credit growth.
India’s largest bank has effected the highest increase of 65 bps on retail domestic term deposits (below ₹2 crore) in the “1 year to less than 2 years” maturity bucket to 6.75 per cent from 6.10 per cent.
The interest rate on retail term deposit in the ‘2 years to less than 3 years” maturity bucket has been increased from 6.25 per cent to 6.75 per cent.
Among all maturity buckets, the aforementioned maturity buckets fetch the highest interest rate of 6.75 per cent.
The Bank said its special ‘SBI Wecare’ Deposit for Senior Citizens in the Retail TD of ‘5 Years and above’ tenor will earn 7.25 per cent interest.
The aforementioned deposit scheme will fetch senior citizens an additional premium of 50 bps over and above the existing 50 bps -- 100 bps over card rate for public (6.25 per cent).
The Bank said ‘SBI Wecare’ deposit scheme stands extended up to 31st March 2023.
Bulk deposits
SBI has effected the highest increase of 100 bps on bulk domestic term deposits (of ₹2 crore and above) in the “180 days to 210 days” maturity bucket to 5.50 per cent from 4.50 per cent.
Among all maturity buckets, the “1 Year to less than 2 years” maturity bucket will fetch the highest interest rate of 6.50 per cent (currently 6 per cent).
The Bank said premature penalty for Bulk Term Deposits for all tenors will be 1 per cent.