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SBI becomes fifth bank to hike FD rates in December 2023

For deposits maturing in seven days to forty-five days, SBI increased interest rates by 50 basis points (bps).

Fixed deposits, mutual funds, interest rates

Fixed deposits, mutual funds, interest rates

BS Web Team NEW DELHI

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The State Bank of India (SBI) on Wednesday hiked interest rates for fixed deposits (FDs) below Rs 2 crore. The new rate is effective from 27 December 2023. With this, SBI has become the fifth bank to hike interest rates on term deposits in December 2023. Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank also increased rates on term deposits this month.

For deposits maturing in seven days to forty-five days, SBI increased interest rates by 50 basis points (bps). Now these deposits will fetch you an interest rate of 3.50 per cent. For FDs for 46 days to 179 days, the bank has hiked rates by 25 bps, and these will guarantee an interest of 4.75 per cent. 
 

On term deposits with 180 days to 210 days tenor, SBI has increased rates by 50 bps. These FDs will fetch an interest rate of 5.75 per cent. 

The bank has hiked rates by 25 bps on 211 days to less than 1 year tenors (6%). FDs maturing in 3 years to less than 5 years will now give 25 bps more, 6.75 per cent. 

FDs booked for 1 Year to less than 2 years will fetch an interest rate of 6.80 per cent, and those booked for 2 years to less than 3 years will fetch an interest rate of 7.00 per cent.

FDs for 3 years to less than 5 years can be booked at 6.75 per cent, while those for  5 years and up to 10 years will fetch an interest rate of  6.50 per cent. 

The specific tenor scheme of “400 days” (Amrit Kalash) at Rate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for rate of interest of 7.60%. The Scheme will be valid till 31-March-2024.

Senior citizens will get 50 basis points (bps) extra on these deposits. 

7 days to 45 days 4%

46 days to 179 days 5.25%

180 days to 210 days 6.25%

211 days to less than 1 year 6.5%

1 Year to less than 2 years 7.30%

2 years to less than 3 years 7.50%

3 years to less than 5 years 7.25

5 years and up to 10 years 7.5%

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On December 1, Bank of India hiked its fixed deposit rates for shorter periods i.e. “46 days to 90 days" tenure to 5.25%, “91 days to 179 days" tenure to 6.00%, for “180 days to 210 days" tenure to 6.25%, for “211 days to less than 1 Year" tenure to 6.50% and for “1 Year" tenure to 7.25% per annum.

Kotak Mahindra Bank increased interest rates on tenors ranging from three to five years. The bank offers an interest rate of 2.75% to 7.25% for general customers on deposits maturing in seven days to ten years, and 3.35% to 7.80% for senior citizens on these deposits. These rates are effective from 11 December 2023. DCB Bank has hiked fixed deposit interest rates on select tenors for deposits below Rs 2 crore from 13 December. The bank is offering the highest FD interest rate of 8 per cent to general customers and 8.60 per cent for senior citizens, after the revision.

Federal Bank has revised its deposit interest rates effective from December 5, 2023. For deposits made by both residents and non-residents, the interest rate has been raised to 7.50 per cent for 500 days. For senior citizens, Federal Bank is now giving a maximum return of 8.15% for 500-day tenures and 7.80% for tenures beyond 21 months to less than three years.

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First Published: Dec 28 2023 | 9:44 AM IST

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