SBI hikes interest rates on tem deposits

SBI, the country's largest commercial bank, has announced an across the board hike in interest rates on term deposits of varying maturities. The increases are between 25 basis points to 50 points and would be applicable from today.

Banks have been raising interest rates to attract more deposits to service the credit growth. The up trend in the interest rate cycle over the last one year or so has also contributed to higher deposit rates being offered by commercial banks.

Even after today's hike, SBI's offer rates are lower than those offered by some of the private sector banks. SBI is now offering a rate of 6.75 per cent per annum for deposits having maturity of between 1 year and 3 years. Kotak Mahindra is already offering a rate of 8 per cent on 290 day deposits and ICICI Bank is offering 8 per cent on 390 day deposits.

The revised rates of SBI are as under:

Existing w.e.f. May 01, 2006		Revised rates w.e.f. August 19, 2006
Duration	Interest Rate (% p.a.)	Duration	Interest Rate (% p.a.)
7 days to 14 days	3.00*	7 days to 14 days	3.50*
15 days to 45 days	4.50	15 days to 45 days	4.75
46 days to 179 days	5.00	46 days to 179 days	5.25
180 days to less than 1 year	6.00	180 days to less than 1 year	6.25
1 year to less than 3 years	6.25	1 year to less than 3 years	6.75
3 years to less than 5 years	6.50	3 years to less than 5 years	7.00
5 years and above	7.00	5 years and up to 10 years	7.25

Interest rates payable on deposits of Senior Citizens (60 years and above):

Existing w.e.f. May 01, 2006		Revised rates w.e.f. August 19, 2006
Duration	Interest Rate (% p.a.)	Duration	Interest Rate (% p.a.)
1 year to less than 3 years	6.75	1 year to less than 3 years	7.25
3 years to less than 5 years	7.00	3 years to less than 5 years	7.50
5 years and above	7.50	5 years and up to 10 years	7.75