New Delhi: The largest bank of the country, State Bank of India (SBI), has increased the interest rate on fixed deposit on select maturities with effect from today. The information was shared on its website. According to a report, the rate of rise in FD interest rates is between 0.05-0.10 per cent.
The SBI has hiked its fixed deposit interest rates on deposits below Rs 1 crore. For more details log on to the official website of the bank.
In July, the State Bank of India (SBI) had increased the interest rate on fixed deposit across various maturities. On fixed deposits below Rs 1 crore, interest rates had been increased up to 10 basis points, One basis point is equal to 0.01 per cent.
For fixed deposits with a maturity of one year to less than two years the FD rate has been raised to 6.7 per cent from the earlier rate of 6.65 per cent. The interest rate for senior citizens has also been, accordingly, increased to 7.2 per cent from the previous rate of 7.15 per cent.
For the tenure of more than two years and less than three years, the interest rate is 6.75 per cent, 0.10 per cent higher than the previous rate of 6.65 per cent. The rate for senior citizens has been increased to 7.25 per cent from 7.15 per cent earlier.
The increase in fixed deposit has come when Reserve Bank of India’s Monetary Policy Committee (MPC) meet has started today and all eyes are on the committee for policy rates.
There are, however, mixed views on what decision the banking regulator will take, as many experts say that RBI is likely to maintain status quo on the key interest rate on Wednesday notwithstanding elevated oil prices and government’s announcement to steeply hike minimum support price for Kharif crops. Others, however, expect policy rates may rise considering an increase in Minimum Support Price (MSP) may push inflation rates further up.