SBI FDs: State Bank of India Increases Fixed Deposit Rates; Check New Rates Here

State Bank of India increased fixed deposit rates following the recent repo rate hike. Across tenures, the increase has been 15-20 basis points. Typically, the rate increase has been made for deposits maturing between 211 days and less than 3 years. It should be noted that the increase only applies to deposits of less than Rs. 2 crores.

A deposit of 211 days to less than one year will now yield 4.6 percent per year. In addition, Fds with 1 year to less than 2 years will now offer 4.6 percent, up from 4.4 percent previously. Furthermore, Fds with a term of one to two years will now yield a 5.3 percent return.

SBI deposit rates as on June 14, 2022

So, even after the recent increase in FD rates, the maximum FD rate remains 5.5 percent and 6.3 percent for senior citizens who have held deposits for more than 5 years.

SBI WeCare deposit scheme extended to September 30, 2022

A special "SBI Wecare" Deposit for Senior Citizens has been introduced in the Retail TD segment, in which an additional premium of 30 bps (over and above the existing 50 bps as detailed in the above table) will be paid to Senior Citizens on their retail TD for tenors of '5 Years and above'.

The interest rate payable to SBI employees and pensioners will be 1 percent higher than the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners aged 60 years and above will be 0.50 percent higher than the rate payable to resident Indian senior citizens, i.e., SBI resident Indian Senior Citizen Pensioners will receive both the benefits of Staff (1 percent) and resident Indian Senior Citizens (0.50 percent).

SBI FDs

Investors are advised to invest in fixed deposits for shorter terms because interest rates are expected to rise in the long run.

If you are investing for the long term, you can break your deposit and reinvest because there will be charges. It is possible that interest rates will rise by at least 50 to 75 basis points over the next few months. The RBI is likely to raise interest rates in the future.