Country's largest lender
State Bank of India on Thursday increased lending rates by 25 basis points and raised deposit rates by up to 100 basis points, a move that will make home, auto and other loans more expensive, but will provide better returns to savers.
The bank has revised the base rate or the minimum lending rate upwards by 25 basis points (bps), or 0.25 per cent, to 9.50 per cent with effect from July 11, SBI said in a statement.
READ: Tips to ensure you get that credit card The interest rates on fixed deposits with a maturity period of 1-10 years has been fixed at 9.25 per cent. The new deposit rates would be effective from July 11.
The bank has also raised its benchmark prime lending rate (BPLR), used to determine floating interest rate loans, have been increased to 14.25 per cent from 14 per cent.
EXPERT VIEW: Applying for a loan? Here's how your credit score can help The decision follows the rate hike announced by the
Reserve Bank in its policy review last month. Several banks, including major private lender
ICICI Bank, Canara Bank, Bank of Baroda, have already raised their lending rates.
According to the statement, deposits up to 90 days will fetch an interest rate of 7 per cent as against 6.25 per cent.
The interest rates for fixed deposits with a maturity period of 1-10 years would be 9.25 per cent. Current deposits between 1 year and 554 days earn an interest of 8.25 per cent.
EXPERTS CHOICE: Best banks to take loans from SBI has also decided to waive the penalty for premature withdrawal of fixed deposits up to 90 days. For premature withdrawal of other deposits, it reduced the penalty to 0.50 per cent from 1 per cent.
SBI has also decided to waive the penalty for premature withdrawal of fixed deposits up to 90 days. 
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