1. SBI interest rates on bulk deposits hiked from November 30; here is big benefit you will get now

SBI interest rates on bulk deposits hiked from November 30; here is big benefit you will get now

Having slashed its fixed deposit rates by 25 basis points across most maturities earlier this month, the State Bank of India has now hiked the rates of its bulk deposits.

By: | Updated: December 1, 2017 11:03 AM
SBI, state bank of india, SBI hikes rates of bulk deposits, bulk deposits of over Rs 1 crore, SBI FD rates Premature penalty for bulk term deposits for all tenors will be 1%. It will be applicable for all new deposits, including renewals.

Having slashed its fixed deposit (FD) rates by 25 basis points across most maturities earlier this month, the State Bank of India – India’s largest bank – has now hiked the rates of its bulk deposits of over Rs 1 crore. As per information available of the bank’s website, bulk term deposits of Rs 1 crore and above will now carry one percentage point higher interest rate than the earlier rates. The revised rates are applicable from November 30, 2017.

For example, domestic bulk term deposits (Rs 1 crore to Rs 10 crore) of less than 2 years will now fetch interest rates ranging from 4.75% to 5.25% as against 3.75% to 4.25% earlier, while deposits ranging from 2 years to 10 years will fetch 5.25% interest as against 4.25% earlier. Similarly, bulk deposits made by senior citizens of less than 2 years will fetch interest up to 5.75%, while deposits between 2 years and 10 years will also give 5.75% return as against 4.75% earlier.

Interest Rates on Domestic Bulk Term Deposits (Rs 1 Crore To Rs 10 Crore)

(All figures in % per annum)

Domestic bulk term deposits (above Rs 10 crore) of less than 2 years will now fetch interest rates of up to 5.25% as against up to 4.25% earlier, while deposits ranging from 2 years to 10 years will fetch 5.25% interest as against 4.25% earlier.

It may be noted that SBI had earlier this month slashed its fixed deposit (FD) rates by 25 basis points across most maturities, effecting from November 1, 2017. For instance, rates of retail domestic term deposits (below Rs 1 crore) of 456 days to less than 2 years were slashed to 6.25% from 6.50% earlier, while rates of retail domestic term deposits (below Rs 1 crore) of 2 years to less than 3 years were revised to 6% from 6.25% earlier.

As per the bank, premature penalty for bulk term deposits for all tenors will be 1%. It will be applicable for all new deposits, including renewals. There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposit.

Taking about the rate increase by SBI and its impact on the stock market, Jimeet Modi, CEO, Samco Securities, says, “The first dark cloud has appeared over the roaring bull market in India. SBI in a surprise move has increased the interest rate on bulk deposits above Rs 1 crore by 100 bps. This indicates that the excess liquidity purportedly created due to demonetization is over and consumed. This points to two things, one, interest rates will now not go down soon, but a possibility for rise has increased; second, the transient liquidity seems quickly evaporating which does not augur well for the bulls. High valuations together with tight liquidity conditions will soon deflate the stock valuations to more reasonable levels.”

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  1. R
    Roshan
    Dec 4, 2017 at 1:16 am
    Introducing 36-month EMI pay just rs999/month
    Reply
    1. Y
      Yogendra Yadav
      Dec 3, 2017 at 1:05 pm
      During budget session, it was announced that senior citizens will get 8 interest on fixed deposits. Where is that commitment?
      Reply
      1. I
        Indian
        Dec 3, 2017 at 11:16 am
        Why you are giving us interest Plz remove interest clause na.. always take interest from us and fill your pot only....
        Reply
        1. R
          Rajesh Kamliya
          Dec 3, 2017 at 10:24 am
          Great
          Reply
          1. R
            Ram Babu meena
            Dec 3, 2017 at 10:12 am
            Meenarambabu24
            Reply
            1. R
              Ravikumar mudda
              Dec 3, 2017 at 10:01 am
              SBI surveyes is very bad at ap ,state Guntur ,distribution,Guntur city, brodepata 10/4 ,branch is very very very
              Reply
              1. R
                Rohit
                Dec 3, 2017 at 9:47 am
                9922844520
                Reply
                1. D
                  DN
                  Dec 3, 2017 at 9:42 am
                  Means making rich... Richer. Whereas the poor and middle class remains the same.
                  Reply
                  1. D
                    Darshan
                    Dec 3, 2017 at 5:04 pm
                    Right brother
                    Reply
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