State Bank of India Raises Short-Term Deposit Rates; Other Lenders Expected to Follow Suit

The country’s largest lender, State Bank of India (SBI), has increased the fixed deposit rates for select short-term maturities by up to 75 basis points. Other lenders are likely to follow this move.

For term deposits of 46-179 days, the rate has been raised by 75 basis points to 5.50%, up from the earlier 4.75%, as per the revised figures on the SBI website. There has been a 25 basis point increase in the other two maturity buckets — 180-210 days and 211 days to less than 1 year, to 6% and 6.25% respectively.

The new rates for deposits less than Rs 2 crore will be effective from May 15, 2024. Senior citizens will be eligible for an additional 50 basis points on the revised rates as per the norms.

SBI has kept interest rates unchanged for other maturity buckets beyond one year. For fixed deposits above Rs 2 crore, the bank has increased the interest rates for both short-term and long-term maturities.

For three maturity periods ranging from 7 days to 210 days, the interest rate has been raised by 10 to 25 basis points. Meanwhile, longer duration term deposits starting from one year to three years will attract higher interest rates of 20 to 25 basis points.