SBI raises interest rates on FDs

State Bank of India announced on Friday a hike in interest rates on fixed deposits by 0.25 to 0.50 per cent with effect from Saturday.

As per the revised rates, to come into effect from Saturday, fixed deposits would now attract a maximum of 8.5 per cent interest under super saver term deposit for senior citizens followed by 8 per cent interest under the same scheme for others.

The revision in rate comes less than a month of Reserve Bank of India hiking its short term transaction rates with banks (repo and reverse repo rates) by 0.25 per cent during the first quarter (2006-07) review of the credit policy that led to announcement by banks to increase their lending rates.

Under the new dispensation, fixed deposits would now get a maximum interest of 7.25 per cent, while senior citizens would get a higher rate of 7.75 per cent for deposits of five years to 10 years.

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