SBI revises fixed deposit rates: Senior citizen benefit most - Find out what you will get on your money

If you are planning to make bulk fixed deposits, then good news has arrived as State Bank of India (SBI) has revised the interest rates for this investment scheme. Once again, it would be senior citizen who would benefit more with this revision in SBI's fixed deposit rates. FDs are among the most traditional format of savings which has been practiced in for decades, due to its guaranteed returns, security and low risk. Interest rates on FDs have been revised in the range of 5.75% to 7.35%. Let's find out what are the new rates and how you will benefit from SBI's fixed deposits. 

Below Rs 2 crore:

Here, SBI offers an FD interest rate ranging from 5.75% per annum to 6.40% per annum for a tenors starting from 7 days to less than 365 days. For senior citizens, the interest rates for the same tenor duration is between 6.25% p.a to 6.90% p.a. For tenure 1 year to 10 years, the interest rates vary from 6.80% p.a to 6.85% p.a. The interest rates for the same duration between 1-10 years is 7.30% p.a to 7.35% p.a. for senior citizens. 

Notably, interest rate payable to SBI staff and SBI pensioners will be 1% above the applicable rate. Moreover, senior citizens and SBI pensioners above the age of 60 will get the benefit of 0.50% above the payable rate of interest. An individual who is a SBI resident senior citizen pensioner will get the benefit of both the above mentioned interest rate i.e 1% of staff and 0.50% for senior citizens. 

Between Rs 2 crore to Rs 10 crore:

For tenures between 7 days to less than a year, interest rates are ranging from 5.75% per annum to 6.40% per annum. Furthermore, for senior citizens, the interest rates vary from 6.25% p.a to 6.90% p.a for the same time duration. Interest rates fall between 6.70% p.a to 6.85% p.a for tenures like 1 year to 10 years. In the same tenor period, senior citizens avail interest rates between 6.25% p.a to 7.35% p.a.

Above Rs 10 crore:

A customer can enjoy between 5.75% p.a to 6.40% p.a interest rate on their FDs made above Rs 10 crore, for tenures between 7 days to 365 days. Senior citizens get 6.25% p.a to 6.90% p.a range of interest rates for the same term period. In the case of tenures between 1 year to 10 years, interest rates vary from 6.70% p.a to 6.85%. It is 6.25% p.a to 7.35% for senior citizens. 

However, a customer has to take a note of pre-mature withdrawals at SBI as well, as there are some extra charges. 

For bulk FDs, pre-mature withdrawals norms at SBI are: 

1. 1% is the premature penalty for bulk term deposits, for all tenors. This is also for new deposits including renewals. No discretion for reduction/waiver of penalty for premature withdrawal of term deposit.

2. Revised rates shall be applicable to fresh deposits and renewals of maturing deposits. 

3. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These shall also be applicable on domestic term deposits from Cooperative banks.