Country’s largest lender State Bank of India (SBI) today raised deposit rates by up to 150 basis points or 1.5 per cent across various maturities, a move that will provide better returns to people with fixed deposits in the bank. The new rates will become effective from tomorrow.
The decision comes close on the heels of various private and public sector lenders including ICICI Bank, Punjab National Bank, Syndicate Bank and Bank of India raising their deposit rates, in response to RBI Governor D Subbarao’s suggestion of giving better returns to depositors.
SBI, according to a official release, will offer a maximum interest rate of 8.75 per cent for deposits with maturity period of 8-10 years, marking an increase of 100 basis points.
The highest increase of 150 basis points will be in case of term deposits with maturity of 46-90 days.