SBI Rings in the New Year with Higher FD Rates: Here's What You Need to Know

State Bank of India (SBI), the nation's largest public sector bank, has taken a significant step by raising interest rates on fixed deposits (FDs) effective December 27, just before the year-end. These new rates apply to FDs below ₹2 crore, benefitting various tenures for investors.

Revised Interest Rates for Different Tenures

• 7 days to 45 days: The bank has amplified rates by 50 basis points (bps) for deposits maturing in this duration, providing an interest rate of 3.50% for regular customers and 4% for senior citizens.

• 46 days to 179 days: With a 25 bps increment, this tenure ensures a 4.75% interest rate for regular customers and 5.25% for senior citizens.

• 180 days to 210 days: SBI has boosted rates by 50 bps, elevating the interest rate to 5.75%.

• 211 days to less than 1 year: Offering 6% interest for regular customers and 6.5% for senior citizens.

• 1 year to 2 years: Regular customers will enjoy an interest rate of 6.80%, while senior citizens get 7.30%.

• 2 years to 3 years: Providing 7.00% interest for regular customers and 7.50% for senior citizens.

• 3 years to 5 years: Offering 6.75% for regular customers and 7.25% for senior citizens.

• 5 years up to 10 years: Providing 6.50% interest for regular customers and 7.5% for senior citizens.

SBI's Initiative and Previous Revisions

This adjustment in FD rates by State Bank of India (SBI) marks a proactive measure by the bank. Earlier, the last revision in interest rates on FDs occurred in February 2023. This recent step follows closely after the Reserve Bank of India's decision not to revise repo rates, signifying SBI's independent decision to enhance its FD offerings.

A Timely Move for Savers: 

This revision comes following February 2023's adjustment, offering savers a welcome reward for their investments amidst a dynamic economic landscape. With the festive season and New Year just around the corner, this hike adds a layer of cheer for those seeking secure returns and planning their financial goals.

A Glimpse into the New Rates:

• 7 days to 45 days: 3.50% (regular), 4.00% (senior citizens)

• 46 days to 179 days: 4.75% (regular), 5.25% (senior citizens)

• 180 days to 210 days: 5.75% (regular), 6.25% (senior citizens)

• 211 days to less than 1 year: 6.00% (regular), 6.50% (senior citizens)

• 1 year to 2 years: 6.80% (regular), 7.30% (senior citizens)

• 2 years to 3 years: 7.00% (regular), 7.50% (senior citizens)

• 3 years to 5 years: 6.75% (regular), 7.25% (senior citizens)

• 5 years and up to 10 years: 6.50% (regular), 7.50% (senior citizens)

Why This Matters:

SBI's latest move comes after the Reserve Bank of India's decision to maintain the repo rate in February 2023. This hike offers savers a compelling opportunity to secure higher returns, particularly in light of rising inflation. With shorter tenures seeing a significant boost, SBI caters to diverse financial needs and risk appeti