SBI increases interest rates for Fixed Deposits over Rs 2 crore; check latest rates here

The State Bank of India (SBI), which is india's largest Public Sector Bank, has announced an increase in interest rates for some tenors, on deposits of more than Rs 2 crore. This revision in rates was implemented early this week and was implemented due to the recent increase by the Reserve Bank of India (RBI) in its repo rates by 50 basis points.

The new rates have already come into effect from Friday, July 15, and these fixed deposit interest rates will be applicable on Domestic term deposits of Rs 2 crore and above.

For general public, deposits maturing between one year and less than two years, the bank increased its FD rates by 50 basis points, from 4.75% to 5.25%. SBI FD interest rates for senior citizens have been increased by 50 more basis points to 5.75% for the same tenor. The bank has not modified the rates for other tenors.

"The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks," read a statement on SBI's website.

SBI's revised Fixed Deposit interest rates for deposits above 2 crore are as follows: 

For tenor of 7 days to 45 days: The interest for General Public will be 3.50 per cent and for Senior Citizens it'll be 4%.

For tenor of 46 days to 179 days: The interest for General Public will be 4 per cent and for Senior Citizens it'll be 4.50%.

For tenor of 180 days to 210 days: The interest for General Public will be 4.25 per cent and for Senior Citizens it'll be 4.74%.

For tenor of 211 days to less than 1 year: The interest for General Public will be 4.50% and for Senior Citizens it'll be 5%.

For tenor of 1 year to less than 2 years: The revised interest rate for General Public will be  5.25% and for Senior Citizens it'll be 5.75%.

For tenor of 2 years to less than 3 years: The revised interest for General Public will be 4.25% and for Senior Citizens it'll be 4.75%.

For tenor of 3 years to less than 5 years: The revised interest for General Public will be 4.50% and for Senior Citizens it'll be 5%

For tenor of 5 years to up to 10 years: The revised for General Public will be 4.50% and for Senior Citizens it'll be 5%.

The SBI also stated on its website that, "Premature penalty for Bulk term Deposits for all tenor will be 1%. It will be applicable for all new deposits including rewards.

RBI likely to increase Repo rates in August

During the Monetary Policy Committee meeting in June, the Reserve Bank of India kept raising its repo rates, and banks did likewise by raising their interest rates. 

This includes an increase in interest rates on bank fixed deposits. Along with other banks including HDFC Bank, ICICI Bank, Punjab National Bank, and others, SBI's FD rates have increased as well.

Since retail inflation stayed above 7% in June, well beyond the central bank's upper tolerance range of 6%, the RBI is anticipated to increase its repo rates at its August MPC meeting.