SBI Fixed Deposit schemes: SBI introduces 400-day tenure scheme, hikes rates on FD schemes below Rs 2 cr

SBI FD schemes: The State Bank of India (SBI) has introduced a special term deposit of 400 days and will be offering a 7.10 per cent rate. This scheme is valid till March 31, 2023. The largest public sector lender has increased its interest rates for fixed deposits or term deposits by 5 bps to 25 bps on amounts below Rs 2 crore, which are effective from February 15, 2023.

Interest rates for senior citizens would be 25 bps more than the rates offered to general investors.

The FD rates were revised a week after the Reserve Bank of India (RBI) hiked its repo rate by 25 bps to 6.50 per cent. This was the sixth straight hike to the repo rate since May 2022.

Revised FD rates

SBI has increased the fixed deposit rates by 25 bps on 2 years to less than 3 years tenure to 7 per cent from the previous 6.75 per cent. It has also increased the interest rates on FD schemes for 3 years to 10 years to 6.50 per cent from 6.25 per cent.

For short-term schemes of 7 to 45 days, the bank will pay an interest of 3.00 per cent. For deposits of 46 to 179 days, the new interest rate is 4.05 per cent, while for schemes of 180-210 days, the rate is 5.25 per cent. For 211-less than 1-year schemes, the new interest rate is 5.75 per cent.

Tenure	FD rates for general investors	FD rates for senior citizens
7 days to 45 days	3.00	3.50
46 days to 179 days	4.50	5.00
180 days to 210 days	5.25	5.75
211 days to less than 1 year	5.75	6.25
1 year to less than 2 year	6.80	7.30
2 years to less than 3 years	7.00	7.50
3 years to less than 5 years	6.50	7.00
5 years and up to 10 years	6.50	7.50

The bank has hiked rates to 7 per cent on 3 years to less than 5 years tenure from the previous 6.75 per cent. The 5 bps hike is given on 1 year to less than 2 years to 7.00 per cent.

The public sector bank is offering an interest rate of 6.60 per cent on schemes of 2 years to less than 3 years. The interest rate for schemes of 3 years to less than 5 years is 6.50 per cent.

The revised interest rate for schemes of 5 years and up to 10 years is 6.50 per cent.

400 days scheme

The SBI has floated a special tenor scheme of 400 days, where it will be offering a 7.10 per cent. This scheme is valid till March 31, 2023.

Along with this, SBI is also offering the SBI Wecare deposit scheme for Senior Citizens in the Retail TD segment wherein an additional premium of 50 bps over and above the existing 50 bps, i.e. 100 bps over card rate for the public (as indicated in the above table) will be paid to Senior Citizens on their retail TD for '5 Years and above' tenure only.

SBI Wecare deposit scheme is also valid till March 31, 2023.

Hike in MCLR

Earlier in the day, the SBI hiked its marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps). The MCLR is the minimum lending rate below which a bank is not permitted to lend. With the increase in MCLR, most consumer loan rates, like personal loans, auto loans, and home loans, go up.

SBI has increased the overnight MCLR rate by 10 bps to 7.95 per cent from 7.85 per cent. The rate for one month tenure has been hiked by 10 bps to 8.10 per cent from 8.00 per cent. The three-month MCLR is now 8.10 per cent, which has been raised from 8.00 per cent. The six-month MCLR stands at 8.40 per cent, which was 8.30 per cent earlier.

For a one-year period, the bank said the new rate will be increased to 8.50 per cent against 8.40 per cent. For a two-year tenure, the new MCLR is 8.60 per cent from 8.50 per cent. The rate for three-year tenure has been raised to 8.70 per cent from 8.60 per cent.