New Delhi, July 30: India’s largest public sector bank, State Bank of India (SBI) has increased the interest rate on fixed deposits with effect from July 30. The new rates are applicable to deposits below Rs 1 crore. According to the official website of the bank, interest rate on fixed deposits for more than one year of maturity have been hiked from 5-10 basis point.

The deposits for one year to two years will now receive an interest rate of 6.7 percent instead of previous rate of 6.65 percent. Similarly, FDs having a tenure between two and three years will fetch an interest rate of 6.75 per cent, as compared to 6.65 per cent earlier. Senior citizens will get an interest rate of 7.2 percent from 7.15 percent on deposits for one to two years, while the interest rate on deposits for two to three years have increased to 7.3 percent from 7,15 percent. SBI on fixed deposits for more than 3-years will now give 10 basis points higher interest rate. This year in May also the bank had hiked FD rates.

Revised Interest Rates on FDs:

Tenors Existing for Public w.e.f. 28.05.2018 Revised For Public w.e.f. 30.07.2018 Existing for Senior Citizens w.e.f. 28.05.2018 Revised for Senior Citizens w.e.f. 30.07.2018
7 days to 45 days 5.75 5.75 6.25 6.25
46 days to 179 days 6.25 6.25 6.75 6.75
180 days to 210 days 6.35 6.35 6.85 6.85
211 days to less than 1 year 6.40 6.40 6.90 6.90
1 year to less than 2 year 6.65 6.70 7.15 7.20
2 years to less than 3 years 6.65 6.75 7.15 7.25
3 years to less than 5 years 6.70 6.80 7.20 7.30
5 years and up to 10 years 6.75 6.85 7.25 7.35

According to experts, the recent depreciation of the Indian rupee against the US dollar and expected increase in inflation could be the reasons for this move. After SBI other private sector banks may also increase rates on fixed deposits. There are also speculations that in the next monetary policy which is scheduled on August 1, the Reserve Bank of India may hike interest rates by 25 basis points.

(The above story first appeared on LatestLY on Jul 30, 2018 03:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).