Sbi Announces Differential Interest For Term Deposits

The State Bank of India has decided to pay no interest on deposits withdrawn prematurely in case the funds have remained with the bank for less than 45 days.

SBI has also announced differential rates of interest for term wholesale deposits. It has decided to give a differential rate of interest of 50 basis points for a single deposit of Rs 15 lakh but less than Rs 1 crore. In case of a single deposit of Rs 1 crore but less than Rs 10 crore, the interest rate differential will be 75 basis points.

The above rates are payable in addition to the rates applicable for amounts less than Rs 15 lakh.

 

A press note from the SBI said the interest rate on domestic term deposits were last revised with effect from May 1, 1998. While the rates for the various maturities have not been changed, as per the RBI directive, SBI has announced differential interest rates on domestic term deposits.

The press note added that the premature withdrawals will also be allowed subject to certain conditions. SBI has said that, while premature withdrawal of term deposits of maturity 15 to 45 days will be permitted, no interest will be paid on premature withdrawal of less than 45 days.

There will be no penalty for premature withdrawal of single deposits up to Rs 10 lakh which have run for more than 45 days. Interest on such premature deposits will, however, be paid at the rate applicable to deposits for the period for which the deposits were actually held with the Bank.

For deposits above Rs 10 lakh which have run for more than 45 days, interest would be paid at the rate of one per cent less than the rate applicable for the period for which the deposit has actually remained with the bank.