The State Bank of India (SBI) has increased interest rates by 20-40 basis points on bulk fixed deposits (FDs) over Rs 2 core with effect from March 10, 2022.
According to the SBI website, the bank has raised the interest rate on FDs worth more than Rs 2 crore with terms ranging from 211 days to less than a year by 20 basis points. With effect from March 10, 2022, these FDs will now earn 3.30 percent, up from 3.10 percent. Senior citizens will earn 3.80 percent, up from 3.60 percent.
For tenures from 1 year and up to 10 years the rates are hiked by 40 basis points to 3.60% from 3.10%. Senior citizens will earn 4.10 percent from 3.60 percent.
The revised interest rates will apply to new deposits as well as renewals of maturing deposits. NRO term deposit interest rates will be matched with domestic term deposit interest rates. These interest rates will also apply to domestic term deposits held by cooperative banks.
Interest rates on bulk term deposits
FD interest rates for under Rs 2 crore
According to the SBI website, for FD tenure of 2 year to less than 3 years, interest rate has been increased by 10 basis points to 5.20 percent, for 3 year to less than 5 year it has been hiked by 15 basis points to 5.45 percent. For FD tenure of 5 years and up to 10 years, the interest rate has been increased by 10 basis points to 5.50 percent with effect from February 15, 2022. Rea more here.
Premature payment of Bulk term deposits
According to the SBI website, premature penalties for bulk term deposits will be 1% for all tenors. It will apply to all new deposits, as well as renewals. The penalty for premature withdrawal of a term deposit is not reduced or waived at the discretion of the bank.
Senior citizen FD interest rates
Across all tenors, senior citizens will receive an additional 0.50 percent rate over and above the usual rate. They will now receive a 3.5 percent to 4.10 percent interest rate on deposits maturing in 7 days to 10 years following the latest revision.