State Bank of India increases interest rates on fixed deposits above two years

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.

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