State Bank of India, the country’s largest lender, on Tuesday announced a 40-90 basis point increase in interest rates on several bulk term deposits.
The revised interest rate on bulk term deposits of Rs 2 crore and above will be effective from Tuesday, the bank said.
The interest rate on mature deposits between 7 days and 45 days has been kept unchanged at 3 per cent, but those maturing between 46 and 179 days will now attract an interest rate of 3.50 per cent as against 3 per cent.
Public sector lenders have also revised interest rates on mature bulk term deposits by 40 basis points to 3.50 per cent from 180 to 210 days, up from 3.10 per cent earlier, according to the bank’s website.
Mature deposits between 211 days and less than 1 year will earn 3.30 percent to 45 bps plus 3.75 percent interest.
The interest rate on bulk deposits of 1 year and less than two years has been increased by 40 bps to 4 percent.
For deposits of less than 2 years to 3 years, the rate has been increased by 65 bps to 4.25 percent.
The interest rate on bulk term deposits up to 3 years and 10 years has been increased by 90 basis points to 4.50 per cent as against 3.60 per cent.
Last week, Punjab National Bank said it had raised interest rates on term deposits in selected buckets by up to 60 basis points from May 7.
The new fixed deposit rate is applicable on deposits up to Rs 10 crore, PNB said.
Banks’ deposit rates rose after the Reserve Bank of India (RBI) raised the repo rate by 40 basis points to 4.40 per cent on May 4.
The repo rate hike by the RBI allows banks to increase their deposit rates, allowing depositors to earn higher interest rates on their funds held with the bank.
On Monday, several banks, including HDFC Bank, Kanara Bank, Bank of Maharashtra and Karur Vaishya Bank, revised their lending rates based on the marginal cost of funds and repo rate.
Meanwhile, Bajaj Finserv’s lending and investing arm Bajaj Finance said on Tuesday that it had raised interest rates on fixed deposits by 10 basis points for a period of 36 to 60 months.
The revised rates on FDs (fixed deposits) up to Rs 5 crore will be effective from May 10, 2022 and will apply to renewal of new deposits and mature deposits, the company said in a release.
After correction, deposits for a period of 36 months to 60 months will return as high as 7 percent. Senior citizens can benefit from higher FD rates of up to 0.25 per cent, which will provide a guaranteed return of 7.45 per cent for 44 months, the release said.
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