As a Diwali offer, the State Bank of India (SBI) has announced to increase the fixed deposit (FD) rates by 25 basis points to a maximum of 80 basis points.

The new rates are applicable on FDs below Rs. 2 crore and will come into effect from today. Senior citizens are the biggest beneficiary.

SBI hiked the interest rate by the highest 80 basis points on tenures of 211 days to less than 1 year to 5.50 percent with effect from October 22, compared to the current 4.70 percent.

Further, the bank hiked the interest rates by 60 basis points to 5.25 percent on FDs maturing from 180 days to 210 days compared to the currently offered 4.65 percent. A similar hike has been made on 2 years to less than 3 years to 6.25 percent from the current 5.65 percent.

At maximum, a senior citizen will get to earn a 6.90 percent rate on 5 years and up to 10 years tenures, higher than 25 basis points from the current 6.65 percent. However, the highest hike is made on 211 days to less than 1-year tenures by 80 basis points to 6 percent from the currently offered 5.20 percent.

A 6.60 percent rate is offered on 3 years to less than 5 years tenures to senior citizens, higher than 30 basis points from the 6.30 percent rate.

While a 50 basis points hike each is provided on FDs for 2 years to less than 3 years tenures to 6.75 percent from the current 6.15 percent on 1 Year to less than 2-year tenures to 6.60 percent from current 6.10 percent and on 46 days to 179 days tenures to 5 percent from 4.5 percent.

The rate is unchanged at 3.50 percent on 7 days to 45 days tenure.

SBI is already offering a specific tenure of '1000 days' at a Rate of Interest of 6.10 percent with effect from August 15 for 75 days.

Further, SBI has a special deposit scheme called 'SBI Wecare' for senior citizens wherein additional premiums of 30 bps will be paid on their retail TD for '5 Years and above' tenures. The deposit scheme is extended up to March 31, 2023.

Meanwhile, SBI staff and pensioners are liable to get 1 percent above the applicable rate. It said, the rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50 percent above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1 percent) and resident Indian Senior Citizens (0.50percent).

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