SBI FD Interest Rate 2024: Good news for senior citizens - Details here

State Bank of India (SBI) has taken a bold step in the financial ecosystem by increasing its Fixed Deposit (FD) interest rates, making it the fifth bank to raise rates in December 2023. This move follows the footsteps of Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank, all of which also increased their rates on term deposits this month.

Key Highlights: SBI has implemented a substantial increase of 50 basis points in FD interest rates on deposits of less than Rs.2 crore. The revised rates are effective from December 27, 2023, providing investors with an opportunity to maximize their returns.

Revised FD Rates for Deposits Less Than Rs.2 Crore:

• 7 days to 45 days: 3.50%
• 46 days to 179 days: 4.75%
• 180 days to 210 days: 5.75%
• 211 days to 1 year: 6.00%
• 1 year to less than 2 years: 6.80%
• 2 years to less than 3 years: 7.00%
• 3 years to less than 5 years: 6.75%
• 5 years to 10 years: 6.50%

Increased Returns for Senior Citizens: Senior citizens can rejoice as SBI offers an additional 50 basis points on the aforementioned FD rates. The revised rates for senior citizens are as follows:

• 7 days to 45 days: 4.00%
• 46 days to 179 days: 5.25%
• 180 days to 210 days: 6.25%
• 211 days to 1 year: 6.50%
• 1 year to less than 2 years: 7.30%
• 2 years to less than 3 years: 7.50%
• 3 years to less than 5 years: 7.25%
• 5 years to 10 years: 7.50%

SBI's decision to raise FD rates aligns with the recent trend in the banking sector. Other prominent banks like Bank of India, Federal Bank, Kotak Mahindra Bank, and DCB Bank have also revised their FD rates upward in December 2023. This collective move comes in response to the Reserve Bank of India's decision to maintain the key repo rate at 6.5%, signaling a dynamic market where banks are taking autonomous steps to attract investors.