As the Diwali festival kick-started across India, the State Bank of India (SBI) hiked fixed deposit interest rates for below ₹2 crore with effect from October 22. SBI is offering attractive rates to especially senior citizens along with a special deposit scheme. At SBI, the elderly can earn an inflation-beating rate of 7.90% on their FDs, however, the benefit is not available to all senior citizens only for a certain category. SBI has been raising FD rates frequently since so far this fiscal in line with RBI’s rate hike trends.
To a normal senior citizen, SBI is offering a 6.9% interest rate on 5 years and up to 10 years tenures for FDs below ₹2 crore. This has been increased by 25 basis points from the previous 6.65%. From October 22, 6.90% is the highest rate that an elderly will be able to earn at SBI.
Further, SBI is offering a 6.60% rate on 3 years to less than 5 years tenures — up by 30 basis points from the previous 6.30%. Also, SBI has hiked interest rates by 60 basis points on 2 years to less than 3 years tenures to 6.75% from the previous 6.15%, while a similar hike was made on 180 days to 210 days tenures to 5.75% from previous 5.15%.
Meanwhile, SBI has hiked interest rates on FDs below ₹2 crore by 50 basis points each — on tenures like 1 year to less than 2 years where the rate is now at 6.60% from 6.10%; and on 46 days to 179 days wherein a senior citizen can 5% from previous 4.5%.
The highest hike of SBI is 80 basis points on 211 days to less than 1-year tenures to 6% from the earlier 5.20% to senior citizens. While the rates are unchanged at 3.50% on the shortest tenure of 7 days to 45 days.
The above-mentioned interest rates are for normal-category senior citizens.
According to the SBI website, the interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%).
Simply put, SBI pensioners who are senior citizens holding 60 years of age and above are eligible for earning an additional 1% on the normal rates. That being said, the highest rate for these senior citizens will turn to 7.9% (6.9% + 1%).
Also, SBI pointed out that the proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
Additionally, SBI has already launched a special ‘SBI Wecare’ deposit scheme for all senior citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps as detailed) will be paid to Senior Citizens on their FDs for ‘5 Years and above’ tenure only. This deposit scheme is extended till March 31, 2023.
Also, recently, the bank introduced a specific tenue of “1000 days” on its FDs at an ROI of 6.10 % with effect from 15-Aug-2022 for 75 days.
For those who don’t fall in the category of senior citizens, SBI is offering interest rates between 3-6.25% to them from October 22.
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