State Bank of India (SBI) has increased interest rates on fixed deposits. New rates have been effective from July 30, 2018. SBI has amended the interest rates for every period, every amount for general and senior citizens. For fixed deposits of less than Rs 1 crore, interest rates have been increased by 5 to 10 basis points, whose tenure is from one year to 10 years. A base point is equal to 0.01 percent.
Significantly, the interest rate on SBI’s Recovery Deposit or RD is equal to Fixed Deposit (FD). Therefore, the SBI’s Recurring Deposit Rate has also been amended from July 30, 2018. Earlier, SBI had amended the interest rates on May 28, 2018.
Interest rate on retail term deposits of less than one crore rupees:
For more than a year and less than two years, the interest rate has been increased from 6.65 percent to 6.70 percent. For senior citizens, the rate has been increased from 7.15 per cent to 7.20 per cent. Similarly, for more than two years and less than three years, it has been increased from 6.65 per cent to 6.75 per cent and for senior citizens 7.15 per cent to 7.25 per cent.
For more than three years and less than five years, the interest rate has been increased from 6.70 per cent to 6.80 per cent for senior citizens and 7.20 per cent for 7.30 per cent. For five years to 10 years, the rate has increased from 6.75 per cent to 6.85 per cent for senior citizens and 7.25 per cent for senior citizens to 7.35 per cent.