The State Bank of India announced a new term deposit scheme, Utsav Deposit, on the occasion of India’s 75th Independence Day with a higher rate of interest. But there’s another bank which tops even that. Read on for details.
The country’s largest lender State Bank of India (SBI) announced a new term deposit scheme, called the Utsav Deposit, on the occasion of India’s 75th Independence Day. The fixed deposit (FD) will be available for a duration of 1,000 days and will offer an interest rate of 6.1 percent with effect from August 15, 2022. Senior citizens will get an additional 0.50 percent interest over and above the standard interest rate. SBI is giving this special offer for 75 days till October 30, 2022.
Recommended ArticlesView All
Laid-off employees may get severance pay — Know how it is taxed and exemptions available
IST3 Min(s) Read
Banks can now sell up to 9 insurance policies — Here's what it means for policyholders
IST3 Min(s) Read
Income tax portal enables co-browsing feature — How does it help you in ITR filing?
IST4 Min(s) Read
Earlier, the bank has also increased interest rates on select fixed deposit tenures by up to 15 basis points across multiple tenures effective from August 13 on deposits less than Rs 2 crore.
Following the changes, SBI is now offering fixed deposit interest rates ranging from 2.9 percent to 6.1 percent for regular customers and 3.40 percent to 6.6 percent for senior citizens.
Last week, private sector lender Axis Bank also hiked its fixed deposit (FD) interest rates for certain tenures for deposits less than Rs 2 crore. The new rates have come into effect from August 11.
Following the revision, Axis Bank is offering 6.05 percent for FD tenure maturing in 17 months to less than 18 months. Interest rates of other FD tenures have not been changed, as per the bank’s website. The rate is 2.50- 6.80% per annum for senior citizens on tenures ranging from 7 days to 10 years.
Some other banks have also raised FD rates on select maturities in the aftermath of the Reserve Bank of India raising repo rates in its recent monetary policy review meeting. Here’s a comparison of the FD rates of top lenders.
State Bank of India
Following the 15-basis-point interest rate hike on fixed deposits last week, the SBI is offering a maximum interest rate of 5.65 percent on deposits maturing in five years and up to 10 years to non-senior individuals, while older adults are getting a maximum interest rate of 6.45 percent for the same tenure.
For a tenure of 7-45 days, SBI is offering 2.9 percent, for deposits for 46-179 days, the bank is giving an interest rate of 3.9 percent. Similarly, for deposits of two years to less than three years, SBI is offering a new rate of 5.5 percent, while those for three years to less than five years will get a return of 5.6 percent.
After the rate hike announced on August 11, Axis Bank is offering an interest rate of 2.5 to 6.05 percent. The interest rates of deposits maturing in one-year-and-11 days; and one-year-and-25 days remain unchanged after the rate hike at 5.75 percent. Similarly, the rate for deposits for a one-year-and-25 days to two years remains at 5.6 percent. The bank is offering 5.7 percent for tenures of two years to less than five years, while those maturing in 5-10 years will attract an interest rate of 5.75 percent.
Kotak Mahindra Bank
Kotak Mahindra Bank also announced an interest rate hike on fixed deposits below Rs 2 crore on August 10.
Following the revision, the bank has kept the rates for FDs with maturity of 7-14 days unchanged at 2.50 percent, but increased the rate for deposits maturing in 15-30 days from 2.50 percent to 2.65 percent. The revised rate on deposits maturing in 31-90 days is 3.25 percent against 3 percent earlier. The bank is offering the highest interest rates of 5.90 percent on deposits for five years and up to 10 years for non-senior citizens. For senior citizens, the bank is offering an interest rate ranging from 3 percent to 6.40 percent on various tenures.
With effect from August 10, Yes Bank is offering higher interest rates on fixed deposits below Rs 2 crore on maturities from seven days to 10 years. The bank is offering interest rates ranging from 3.25 percent to 6.75 percent for the non-senior customers and 3.75 percent to 7.5 percent for elderly persons.
On August 8, Canara Bank announced a hike in interest rates on fixed deposits below Rs 2 crore. At present, the bank is offering interest rates on deposits maturing in seven days to 10 years in the range of 2.9 percent to 5.75 percent to non-senior customers and 2.90 percent to 6.25 percent for senior citizens.
(Edited by : Shoma Bhattacharjee)
First Published: IST