The State Bank of India (SBI) has hiked interest rate on retail term deposits by 25-75 basis points for deposits up to 1 year, giving further push to competition for raising resources. The revised rates for deposits came into effect from May 15, 2024.  

In the retail term deposits below Rs 2 crore, the revised rate is 5.5 per cent, up from 4.75 per cent for the 46-179 days maturity bucket.

The new rate for 180-210 day’s bracket is 6.0 per cent as against 5.75 per cent and in 211 days to less than one year is 6.25 per cent as against 6.0 per cent.

In case of bulk deposits, those of Rs 2 crore and above, the increase was between 10-50 basis points across short, medium buckets.

According to a senior SBI official, the rate action was meant to meet credit demand requirement which remains strong.