This as top lenders like HDFC, Private are also paying their clientele with the required some.
The Largest lender in the country, the State Bank of India, has released its rates of annual return to its fixed depositor tranche of its nexus, as the effects of the pandemic demand a change in the status quo.
The bank that holds the largest number assets in the country stations 8 maturity alternatives at its disposal for retail fixed deposits along with regular fixed deposits up to an amount of 2 Crores/20 million (INR). As of today, without any issuance of further changes, SBI gives the regular depositor an interest rate of 2.9 % – 5.4%, while providing an interest rate of 3.4 % – 6.2 % senior citizens on retail fixed deposits, this as top lender like SBI, Private and Kotak Mahindra bank tend to pay a higher interest rate to senior citizens in the lock in period, as they also are obliged to change and regulate their interest rates in accordance to changing benchmark rates.
As according to market norms the maturity period of a particular fixed deposits could extend from a time span of 7 days to an extensive period of a decade ie 10 years.
|
MATURITY PERIOD |
INTEREST RATE FOR REGAULAR FD |
|
Seven days to 45 days |
2.9% |
|
211 days to less than one year |
4.4% |
|
One year to less than two years |
4.9% |
|
Two years to less than three years |
5.1% |
|
Three years to less than five years |
5.3% |
|
Five years and up to 10 years |
5.4% |
|
MATURITY PERIOD |
INTEREST RATE FOR SENIOR CITIZENS |
|
Seven days to 45 days |
3.4% |
|
211 days to less than one year |
4.9% |
|
One year to less than two years |
5.4% |
|
Two years to less than three years |
5.6% |
|
Three years to less than five years |
5.8% |
|
Five years and up to 10 years |
6.2% |
This garners headlines as the Reserve Bank of India has sustained the repo rate (interest for banks to borrow) at 115 basis points since the end of the last fiscal year, back in February 2020. Before that, as a result of the pandemic it had slashed the repo rate in order to push demand in the market.
