Retail term deposit rates, for deposits below Rs. 1 crore, continue to be the same
Mumbai: Public sector bank State Bank of India (SBI) on Tuesday hiked interest rates with immediate effect on its domestic bulk term deposits by 75-140 basis points.
This follows SBI’s last November increase by one per cent on bulk term deposits, defined as those for Rs. 1 crore and above.
Retail term deposit rates, for deposits below Rs. 1 crore, continue to be the same.
For short-term deposits (46-179 days and 180-210 days), the new rate is 6.25 per cent, up from 4.85 per cent.
On deposits between one year and two years, the SBI will pay 6.25 per cent interest, as against 5.25 per cent earlier.
For deposits maturing between two and 10 years, the new rate is 6 per cent, up from 5.25 per cent.
According to bank officials, Tuesday’s rate changes will not make much difference to the SBI cost of funds as bulk deposits only constitute a small portion of the bank’s total deposits.[“Source-ndtv”]