State Bank of India (SBI) has hiked interest rates on fixed deposits (FDs) across various tenures by 10-25 basis points, effective from today. A basis point (bps) is one-hundredth of a percentage. It has hiked rates for tenures ranging from two years to 10 years and will now earn between 6.6% and 6.75%.
For term deposits below Rs1 crore, the interest rate has been hiked by a maximum of 25 bps. Senior citizens will get 50 bps extra on their deposits. Currently, for FDs of more than a year but less than two years, interest rate is 6.4% for general public and 6.90% for senior citizens which has remained unchanged. For term deposits between Rs1 crore and Rs10 crore, only FDs with a tenure of 1 year but less than two years will see a hike of 25 bps.
SBI staff and SBI pensioners will get 1% extra on the applicable rates for the general public. SBI pensioners (age 60 years above) will get benefit from the higher interest rate of 0.50%, which is available to senior citizens along with the 1% extra.