SBI, PNB hike FD interest rates
SBI, PNB hike FD interest ratesState Bank of India (SBI) and Punjab National Bank (PNB) have increased their fixed deposit (FD) interest rates. This development comes close to intensifying efforts by the RBI to control excess liquidity from the banking system.
According to SBI’s website, the bank has increased interest rates by up to 20 basis points (bps) for general public and senior citizens on FDs of less than Rs 2 crore for certain tenures. The revised interest rates on FDs are applicable from June 14.
For SBI FDs with tenors ranging from 211 days to less than one year, the public sector bank has increased the interest rate by 20 bps to 4.60%. For senior citizens, the rate has been increased to 5.10%.
For FDs with tenures ranging from 1 year to less than 2 years, the interest rate has increased by 20 bps from 5.10% to 5.30%. FDs of same tenure in the name of senior citizens will get 5.80% return.
SBI, the country’s largest lender, is increasing the rate of interest on FDs with tenures of 2 years to 3 years by 15 bps from 5.20% to 5.30%. The new rate for senior citizens will be 5.85%.
SBI FD Interest Rates
There has been no change in SBI’s FD rates for tenures of 3 years to 5 years and 5 years to 10 years.
Similarly, the country’s second largest public sector lender PNB has increased interest rates on FDs below Rs 2 crore.
The interest rate on FDs of one year and more than one year and up to 2 years has been increased from 5.10% to 5.20%.
The bank has increased the interest rates for FDs with tenor of more than 2 years from 3 years to 5.30 per cent. You will get 5.50% return on deposits from 3 years to 5 years. The bank will give 5.60% return on FDs with tenures of 5 to 10 years.
The public lender has also increased the interest rates on FDs especially for senior citizens.
Trust Mutual Fund CEO Sandeep Bagla said that when RBI takes measures to infuse liquidity from the system, banks compete hard by raising deposit rates. So it is natural that the interest rates on FDs will increase. “Liquid mutual funds can be another option where investors can get good returns with almost zero risk.”