State Bank of India (SBI) had increased its fixed deposit rates by 0.25% on certain maturities from March 1, 2013.
With the revision, the interest rate on 1-2 years fixed deposit would go up to 8.75 per cent, from 8.50 per cent. Similarly, term deposit 2-3 years, 3-5 years and 5-10 years would also earn higher interest rate of 8.75 per cent. However, the bank has left interest rate unchanged for deposits less than 1 year.
The bad news is there is no increase in Fixed Deposit rates for Senior Citizens as SBI has reduced the premium in interest rates from 0.5% to 0.25% for them.
Premature withdrawal of SBI Term Deposits:
- Domestic Term and NRO Deposits should remain for a minimum period of 7 days and NRE Deposits should remain for a minimum period of 1 year in order to earn interest.
- No penalty for premature withdrawal upto 180 days and 0.5% for other maturities.
Loan Against Fixed Deposit:
Loan at only 0.5% above the rate of deposit on term deposit