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SBI hikes FD interest rates: Here's what all the banks are offering

Effective from May 15, 2024, the new SBI FD rates aim to attract more investors looking for safe and lucrative savings options

SBI, state bank of india

Photo Credit: Ruby Sharma

Surbhi Gloria Singh New Delhi

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The State Bank of India (SBI) has announced a significant hike in fixed deposit (FD) interest rates for certain tenures on retail deposits up to Rs 2 crore. Effective from May 15, 2024, the new rates aim to attract more investors looking for safe and lucrative savings options.

New FD rates

SBI has increased interest rates for the following tenures:

46 to 179 days: Interest rate hiked by 25-75 basis points to 5.50%
180 to 210 days: New interest rate is 6.00%
211 days to less than one year: Interest rate now stands at 6.25%

For deposits beyond one year, interest rates remain unchanged. Senior citizens will continue to enjoy an additional 50 basis points on the revised rates.

Updated interest rates by tenure

Here’s a detailed look at the updated interest rates for various tenures:

7 days to 45 days: 3.50%
46 days to 179 days: 5.50%
180 days to 210 days: 6.00%
211 days to less than one year: 6.25%
1 year to less than 2 years: 6.80%
2 years to less than 3 years: 7.00%
3 years to less than 5 years: 6.75%
5 years up to 10 years: 6.50%

Senior citizens benefit from higher rates, as follows:

7 days to 45 days: 4.00%
46 days to 179 days: 6.00%
180 days to 210 days: 6.50%
211 days to less than one year: 6.75%
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 up to 10 years: 7.50%

FD interest rates 2024

Currently, FD interest rates of scheduled banks range from 2.50% per annum to 9.00% per annum for regular depositors for tenures ranging from 7 days to 10 years. Small Finance Banks and NBFCs offer the highest FD interest rates. Following them are PSU Banks and large Private Sector Banks. However, Private Sector Banks like Bandhan Bank, DCB Bank, Tamilnad Mercantile Bank, RBL Bank, IDFC First Bank, IndusInd Bank, Yes Bank, SBM Bank, CSB Bank, and Federal Bank offer higher FD slab rates than the fixed deposit rates offered by other Private Sector Banks.

FD RATES
FD RATES
FD RATES

 
What are fixed deposits?

Fixed Deposits (FDs) are one of the safest investment options. In an FD, a lump sum of money is deposited for a specified period, ranging from a few months to several years. Banks offer a guaranteed interest rate on these deposits, usually higher than that of regular savings accounts.

Advantages of fixed deposits

Assurance of returns
FDs guarantee returns, making them a risk-free investment option compared to mutual funds and stocks. The interest rate is fixed at the time of deposit and paid upon maturity.

Convenience
Opening an FD account is simple and can be done online or by visiting the nearest bank branch.

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First Published: May 16 2024 | 2:42 PM IST

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