SBI hikes interest rates on term deposits

June 27th, 2008 - 11:20 pm ICT by IANS  

Mumbai, June 27 (IANS) A day after after hiking its prime lending rate, the country’s largest public sector State Bank Of India (SBI) offered relief to its long-term depositors by raising interest rates on term deposits by up to 75 basis points. The hike is effective for deposits of between six months and 10 years and comes into effect from June 30, according to an announcement here late Friday evening.

The interest rate for deposits ranging from six to 12 months has been raised from existing 7.5 percent per annum to eight percent per annum.

Similarly, for deposits from one year to less than three years, it has been hiked from existing 8.75 percent to 9.5 percent.

For deposits of three years to less than five years (existing 8.85 percent) and 5-10 years (existing nine percent), the rate has been revised to a uniform nine percent.

Senior citizens have been given a relief by SBI. For them, the deposit rate for one year to less than three years will be 10 percent against 9.25 percent.

For three years to less than five years (existing 9.35 percent) and 5-10 years (existing 9.5 percent), the revised hike is a uniform 9.5 percent.

With inflation figures touching a new record high of 11.42 percent Friday, the long-term depositors would get some relief in the times of high inflationary trends.

This is the second revision in term deposit rates in 30 days and the third since January this year.

On June 1, the SBI hiked the rates of various categories of term deposits by 25-50 basis points, ranging from 8.75 percent to nine percent.

As in the earlier revision, the SBI has decided not to touch deposits in the short and medium terms.

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