SBI hikes deposit rates by up to 20 bps on some tenures

State Bank of India on Tuesday raised interest rates on some retail domestic term deposits by 15 to 20 basis points. The interest rates were raised on deposits of below Rs 2 crore. The revised interest rates will come into effect from June 14, according to information on the website of the lender.

For deposits of 211 days to less than a year, SBI will offer an interest rate of 4.60% as against 4.40% earlier. For domestic term deposits of one year to less than two years, customers can earn interest of 5.30%, compared to 5.10% earlier.

For deposits maturing in two years to less than three years, the bank has raised the interest rate to 5.35% from 5.20%. The interest rates for senior citizens are higher by 50 basis points for these tenures.

The lender has also revised the interest rates on domestic bulk term deposits of Rs 2 crore and above for some tenures by up to 0.75%. For the tenure of one year to less than two years, customers having bulk deposits will earn interest at 4.75% from 4% earlier.

Typically, term deposit growth tends to follow the movement in market interest rates. With the RBI increasing the policy rates, analysts expect the term deposit growth to improve. Aggregate deposit growth in March stood at 10.2% compared to 12.3% in the year-ago period, RBI data showed.

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