SBI increases interest on deposits, best rate now 7.1%

MUMBAI: SB extension raised deposit and lending rates after last week’s RBI hike by 25 basis points (100 basis points = 1 percentage point). The new rates are 5-25 basis points higher and will take effect February 15. With the revised rates, senior citizens will receive 8.5% on deposits over 5 years as the bank offers a special ‘SBI WeCare‘ deposit scheme until March 2023.
The bank also raised the marginal cost of lending rate (MCLR), which is the benchmark for legacy floating rate loans and business advances, and reflects changes in the bank’s cost of funds. For retail borrowers, the increase in the loan rate is automatic as these are linked to the RBI repo rate. Most banks have already announced that their rates have increased in line with the repo.
The RBI last revised its deposit rates in December 2022 after the Monetary Policy Committee raised rates by 25 basis points. This time the country’s largest bank introduced a new 400-day deposit scheme with an interest rate of 7.1%, which is best for the general public. In other slabs, SBI deposits from one year to less than two years offer a yield of 6.8% versus 6.75%. In the two- to three-year range, deposits collect 7% against 6.75%. Deposits over three years return 6.5% against 6.25%. Seniors get 50-100 basis points more.
Usually, the rate increases with the tenure. However, for banks the best rate is in an open-ended scheme, which is usually less than two years.

malek

Leave a Reply

Your email address will not be published. Required fields are marked *

GreenLeaf Tw2sl