Largest lender State Bank of India (SBI) on Tuesday increased its domestic bulk deposit rates ranging between 50 basis points to 140 basis points on various tenure with immediate effect.
 
On domestic bulk term deposit of Rs 1 crore, SBI has given interest rate of 6.25% for one year to 455 days tenure - up from 100 basis points from previous 5.25% rate.
 
For similar tenure, SBI is giving interest rate of 6.75% to senior citizens versus earlier 5.75% rate.
 
Similar interest rate is applied for both individuals and senior citizens who deposit the amount for a tenure of 456 days to less than 2 years.


 
Meanwhile, interest rate on deposits for tenure of 2 years to less than 3 years has been kept at 6% - higher by 75 basis points compared to previous rate of 5.25%.
 
A 75 basis point increase was also made for senior citizen for tenure of 2 years to less than 3 years. They will earn interest rate of 6.50% at SBI from their previous 5.75%.
 
The bank has also levied 6.50% interest rate each for individuals and senior citizens - who make bulk deposit for 3 years - 5 years and above up to 10 years.
 
It may be noted that bulk deposits that are made for short-term will receive high interest rate.
 
Deposits for 46 days to 179 days' tenure, an individual can earn up to 6.25% interest rate - up by a whopping 140 basis points as against previous 4.85% rate. With similar hike, senior citizens will earn up to 6.75% rate from their earlier rate of 5.35%.
 
140 basis point hike is similar for individuals and senior citizens for 180 days to less than 210 days tenure.
 
In case an individual decides to make Rs 1 crore deposits for 211 days to less than 1 year tenure, he or she will receive an interest of 6.25% - up 125 basis points from previous 5% rate. Senior citizens also have the same hike, and will get interest of 6.75% now versus previous 5.50% rate for the similar period.
 
Another 50 basis points hike was levied by SBI for the lowest tenure from 7 days to 45 days. Individuals in this period will get interest rate of 5.25% from earlier 4.75%, while senior citizens will have 5.75% interest rate as against their previous 5.25% rate.
 
The rates and hikes were same for domestic bulk deposits made above Rs 10 crores.
 
SBI stated that premature penalty for Bulk Term Deposits for all tenors will be 1%. It will be applicable for all new deposits including renewals.
 
Also, there is no discretion for reduction/waiver of penalty for premature withdrawal of term deposit
 
“The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits,” said SBI.
 
Not only this, these rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks, said SBI.
 
Moreover, the interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits.
 
SBI has been hiking bulk deposit rates on multiple occasions. On November 30, 2017, the bank raised interest rates by 100 basis points across all tenures for deposits of over Rs 1 crore.
 
As per the Reserve Bank of India (RBI) guidelines from 1 April 2013, all deposits accepted by banks for amount of Rs 1 crore and above - then are stated as bulk deposits and such deposits alone can be offered differential interest rates.