The State Bank of India (SBI) has sharply raised interest rates on domestic wholesale term deposits (₹2 crore and above) by 40 to 90 basis points effective May 10, 2022.
This comes amid the bank revising its lending rate based on the marginal cost of funds (MCLR) up by 10 basis points across the board last month and the RBI raising the repo rate. by 40 basis points, from 4% to 4.40% as of May 4, 2022.
India’s largest bank has made the maximum interest rate increase of 90 basis points each on deposits in two tenors – 3 years to less than 5 years, and 5 years and up to 10 years. Deposits in these two maturities will now earn 4.5% interest compared to 3.6% previously.
The new interest rate on deposits with a maturity of 2 years to less than 3 years has been raised by 65 basis points, from 3.60% to 4.25%.
Deposits between 46 days and 179 days will earn 50 basis points higher interest – 3.50% vs. 3% previously. Deposits within 211 days to less than a year will earn 45 basis points higher interest – 3.75% vs. 3.30% previously.
SBI raised the interest rate on deposits in two tenors by 40 basis points each. Deposits with a term of 180 days to 210 days and a term of 1 year to less than 2 years will earn 3.50% (3.10% sooner) and 4% (3.60%) respectively.
The interest rate on deposits between 7 and 45 days remains unchanged at 3%. Seniors will continue to earn 50 basis points above the card rate.
NRI Term Deposits
SBI said the premature penalty for bulk term deposits for all tenors will be 1%. It will be applicable for all new deposits, including renewals. There is no discretion for penalty reduction/waiver for early withdrawal of a term deposit., according to the bank’s website
Interest rates on NRO (non-resident ordinary) term deposits will be aligned with domestic term deposit rates. These interest rates will also apply to national time deposits of cooperative banks.
Meanwhile, Bajaj Finance has raised interest rates on its fixed deposits up to ₹5 crore by up to 10 basis points for a term between 36 and 60 months. The new rates come into effect on May 10.
After the review, deposits between 36 months and 60 months will offer a cumulative return of 7%. Seniors can earn 25 base points more than the card fare.
May 10, 2022