People are perplexed as to where to park their hard earned money as saving a/c interest rates have hit a new low. The traditional approach favored FD’s but their interest rates have also gone low because of the economy underperforming domestically and internationally as well.
In a move which will make savers in India happy and smile the State Bank of India (SBI) has revised its interest rates and made them higher on fixed deposits below Rs. 1 crore.
The revision will take effect from 28th May 2018.SBI has revision interest rates by up to 25 basis points in select maturities, according to the bank’s website.
The interest rates on FD’s with a maturity of 1 year to less than 2 years has been increased to 6.65 percent to 6.7 percent for the general public and Senior citizens will receive an interest rate of 7.15 percent as compared to 6.9 percent previously.
Also, FD’s with a maturity of 2 years to less than 3 years will give the savers an interest rate of 6.65 percent which is higher than the previous 6.6 percent earlier. Also, Senior Citizens will get 7.15 % as compared to the 7.10 % they were receiving earlier
On other maturities, the interest rates have been kept as same. For example, SBI will offer an interest rate of 5.75 percent on fixed deposits with a maturity of seven days to 45 days, 6.25 percent on 46 days to 179 days and 6.35 percent on 180 days to 210 days. Other maturity brackets of 211 days to less than one year will fetch 6.40 percent, three years to less than five years will offer 6.70 percent and five years and up to 10 years will give 6.75 percent.
These updates will be beneficial for the common man and specially retired people who survive on interest from FD’s and is definitely good news for all savers.
In FD’s every 1 percent increase matters and has a major impact on the interest received for the savers.
This move by SBI should motivate and inspire other banks to also increase the interest rates on FD’s so that the common man receives some relief and also some extra income as interest.
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