SBI raises term deposit rates
State Bank of India raises its term deposit interest rates with effect from Friday (January 4) for tenures ranging from 91 days to two years, reports BS Srinivasalu Reddy.business Updated: Jan 03, 2008 22:25 IST
The State Bank of India (SBI) has raised its term deposit interest rates with effect from Friday (January 4) for tenures ranging from 91 days to two years. The bank has also raised interest rates on term deposits above a year for senior citizens.
The interest rates for short tenures of 15-45 days and 46-90 days would, however, remain unchanged at 4.75 per cent and 5.25 per cent respectively.
The slabs of 46-270 days and 271 days to a year are now split into three slabs – 46-90 days, 91-180 days and 181 days to less than a year.
The 91-180 day deposits will fetch a higher return of 7 per cent against 5.25 per cent, while the 181 days to one year slab will fetch 7.5 per cent, a percentage higher than the 271 days to one year deposits would have fetched until now.
The one year to 549 days and a stand alone 550 days deposit slabs were done away with and replaced by one year to less than two year deposits slab, which would now fetch 8.75 per cent against 8.25 per cent and 8.5 per cent for the two slabs earlier. The 551 days to three years and 3-10 years slabs have been clubbed into a single slab of 2 years and up to 10 years carrying an interest rate of 8.5 per cent, as it did earlier for deposits of above 3 years.
Offers to senior citizens have also become more attractive in the shorter term. While 1-2 year deposits will fetch 9.25 per cent, two-10 year deposits will fetch only 9 per cent, like deposits of over 3 years fetched. Only those deposits with over a 5 year tenure would be eligible for income-tax exemption under Section 80C and within the overall slab of Rs 1 lakh.