SBI hikes interest rates on bulk deposits of over Rs 1 crore

For deposits maturing between two and 10 years, the new rate is 6%, up from 5.25%

State Bank of India (SBI) increased on Tuesday interest rates on its domestic bulk term deposits by 75-140 basis points with immediate effect.

Tuesday’s rate changes will not make much difference to the State Bank of India cost of funds as bulk deposits only constitute a small portion of the bank’s total deposits. (Mint file photo)

This follows SBI’s last November increase by 1% on bulk term deposits, defined as those for Rs 1 crore and above.

Retail term deposit rates, for deposits below Rs 1 crore, continue to be the same.

For short-term deposits (46-179 days and 180-210 days), the new rate is 6.25%, up from 4.85%.

On deposits between one year and two years, the SBI will pay 6.25% interest, as against 5.25% earlier.

For deposits maturing between two and 10 years, the new rate is 6%, up from 5.25%.

According to bank officials, Tuesday’s rate changes will not make much difference to the SBI cost of funds as bulk deposits only constitute a small portion of the bank’s total deposits.