Unlike every other bank like HDFC Bank, ICICI Bank and Axis Bank were rising their fixed deposit rate. The Indian Public sector bank, State Bank of India also implemented yesterday, the revised rate on fixed deposits. The SBI’s FD rate has been only hiked for two types of tenure, while the other remaining interest rate will be the same. India’s largest lender State Bank Of India has lifted up the interest rate of fixed deposit by 5-10 basis point with the maturity period of one -two years. This decision has come forward in RBI’s bi-monthly monetary policy review. The new revised rate of fixed deposit will be applicable for an amount less than one crore. After the revised rate of fixed deposit with the maturity period of one -two years will fetch 6.80 per cent as compared to 6.70 per cent previously.
According to the review of SBI, the fixed deposit for maturity for one to two years for senior citizen has been revised to 7.30 per cent from 7.20 per cent. SBI has also slightly lifted up the interest rate on FDs with maturity period from two years to three years, while there will be no change in the maturity periods.
SBI said that the interest rate payable to SBI staffs and pensioner will be 1 per cent above the applicable rate. The rate which will be affecting to all the senior citizens and SBI pensioners of age 60 years will be 0.50 per cent applicable for those who are resident of India. As per the new revised rate, a regular citizen can make the deposit at SBI and earn 6.80 per cent interest per annum. Earlier the interest rate was 6.75 per cent. However, as per SBI, NRO deposits of staffs are not eligible for an additional 1 per cent interest.
Further, SBI said that the proposed rate of interest shall be made applicable to fresh deposits and renewal of maturing deposits.
According to the interest rates on “SBI Tax Saving schemes 2006” Retail Deposits and NRO Deposits shall be aligned as per the proposed rates for domestic retail term deposit.