From February 10, India’s biggest lender State Bank of India (SBI) will be paying interest rates at 4.5-6.5 percent to customers on retail fixed deposits (FDs). The bank presently offers eight maturity options for fixed deposits up to Rs 2 crore starting from seven days to 10 years, and provides higher returns rates to senior citizen depositors as compared to other customers, as per the details mentioned on sbi.co.in.
Read full details of SBI fixed deposits (FDs) here:
Interest Rates And Maturity Options
Starting from February 10, SBI will provide the following interest rates on fixed deposits up to Rs 2 crore:
|Maturity Period||Interest Rate With Effect From February 10, 2020|
|7 days to 45 days||4.50%||5.00%|
|46 days to 179 days||5.00%||5.50%|
|180 days to 210 days||5.50%||6.00%|
|211 days to less than 1 year||5.50%||6.00%|
|1 year to less than 2 year||6.00%||6.50%|
|2 years to less than 3 years||6.00%||6.50%|
|3 years to less than 5 years||6.00%||6.50%|
|5 years and up to 10 years||6.00%||6.50%|
Interest Rates For Senior Citizens
On fixed deposits up to Rs 2 crore, SBI as of now pays a 50-basis-point (0.5 percentage point) higher return to the senior citizens compared to other customers.
While no upper limit to the amount has been set, the bank has made a minimum investment of Rs 1,000 compulsory for parking funds in its retail fixed deposits.
Change In Interest Rates
SBI offers both monthly and quarterly interval categories for crediting the interest in retail fixed deposit accounts.
However, the payment of interest on a monthly basis is given at a discounted rate, according to the SBI website.
Meanwhile, SBI has also slashed its marginal cost of funding-based lending rates (MCLR) by 5 basis points across tenors, stating the ninth downward revision in the important lending rates so far this fiscal year. The new rates will also come into effect from February 10 and make home loans cheaper for new SBI customers.