Business

SBI offers a whopping 7.65% interest rate on fixed deposits for seniors but has an advantage


The largest public sector bank, State Bank of India (SBI) has raised interest rates by 10-20 basis points on the below fixed deposits 2 crore. The revised rate comes into effect from October 15. The elderly are the biggest beneficiaries of this FD rate hike. However, there are certain categories of seniors who will receive an extra 1% on top of the applicable FD. At maximum, these certain categories can earn up to 7.65%, which is a return that beats inflation.

To the elderly, SBI usually offer a maximum interest rate of 6.65% for terms from 5 years to 10 years in FDs effective from October 15, compared with the previous level of 6.45%. The bank offers 6.3% for terms from 3 years to less than 5 years from 6.10% previously, while the interest rate is 6.15% for terms from 2 years to less than 3 years from 6% and 6.10% for terms from 1 year to less than 2 years from 5.95% before.

Seniors can earn up to 5.20% and 5.15% for terms from 211 days to less than 1 year and 180 days to 210 days compared to 5.10% and 5.05% respectively before that’s theirs. For short-term terms, the FD rate is 4.5% compared to the previous 4.40% for terms of 46 days to 179 days and 3.50% compared to the previous 3.40% for tenors. 7 days to 45 days.

However, on its website, SBI says, interest rates payable to SBI Employees and SBI pensioners will be 1% higher than the applicable rate.

Furthermore, the bank states that the rate applicable to all Seniors and SBI Pensioners aged 60 and over will be 0.50% higher than the rate payable for all tenors for senior citizens. Resident Indian Seniors i.e. Senior Indian Pensioners residing in SBI will receive both Employee (1%) and Resident Indian (0.50%) benefits.

This means seniors on SBI pension will receive up to 7.65% (6.65% + 1%) for a term of 5 years and up to 10 years.

SBI has also launched a special “SBI Wecare” deposit for Seniors introduced in the TD Retail segment, where an additional premium is 30 basis points (above & above 50 basis points). existing as detailed in the table above) will be paid to Seniors on their retail TD for a term of ‘5 years or more’ only. The SBI Wecare deposit program is extended until March 31, 2023.

In addition, the bank has given a specific term of “1000 days” with an ROI of 6.10%, effective August 15, 2022, for 75 days.

The revised rate will be applied to new deposits and renewals of matured deposits.

However, Employee NRO deposits are not charged an additional 1% interest if not applicable to employees’ domestic retail deposits, these rates will also apply to term deposits domestically from Cooperative Banks, according to SBI.

For the general portfolio, SBI is offering interest rates ranging from 3% to 5.85% on the FDs below 2 crore.

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