State Bank of India (SBI) has sharply upped Interest rates on Domestic Bulk Term deposits (₹2 crore and above) by 40-90 basis points with effect from May 10, 2022.
This comes in the backdrop of the bank revising its marginal cost of funds based lending rate (MCLR) upwards by 10 basis points across the board last month and the RBI upping the policy repo rate by 40 basis points from 4 per cent to 4.40 per cent with effect from May 4, 2022.
India’s largest bank has effected the maximum increase of 90 basis points in interest rate each on deposits in two tenors - 3 years to less than 5 years, and 5 years and up to 10 years. Deposits in both these tenors will now earn 4.5 per cent interest against 3.6 per cent earlier.
The new interest rate on deposits of 2 years to less than 3 years’ tenor has been hiked by 65 basis points from 3.60 per cent to 4.25 per cent.
Deposits in the 46 days to 179 days tenor will earn 50 basis points higher interest - 3.50 per cent vs 3 per cent earlier. Deposits in the 211 days to less than 1 year will earn 45 basis points higher interest - 3.75 per cent vs 3.30 per cent earlier.
SBI has increased interest rate on deposits in two tenors by 40 basis points each. Deposits in the 180 days to 210 days tenor and 1 year to less than 2 years tenor will fetch 3.50 per cent (3.10 per cent earlier) and 4 per cent (3.60 per cent), respectively .
Interest rate on deposits in the 7 days to 45 days tenor remains unchanged at 3 per cent. Senior citizens will continue to earn 50 basis points higher than the card rate.
NRI term deposits
SBI said premature penalty for Bulk Term Deposits for all tenors will be 1 per cent. It will be applicable for all new deposits, including renewals. There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposit., per the bank’s website
The interest rates on NRO (non-resident ordinary) 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.
Meanwhile, Bajaj Finance has increased the interest rates on its Fixed Deposits of up to ₹5 crore by up to 10 basis points for tenor between 36 and 60 months. The new rates are effective from May 10.
Post the revision, deposits between 36 months and 60 months will offer a cumulative return of 7 per cent. Senior citizens can earn 25 basis points higher than the card rate.