Mumbai, May 26: Country's largest lender State Bank of India today said it has decided to increase interest rates on domestic term deposits for more than two years, by 25-50 basis points.
The revised deposit rates will be effective from June 1, 2008, a SBI release said here today. Under the revised rates, interest rate on term deposit for two to three years will be increased to 8.75 per cent from present 8.50 per cent. For three to five years, it will be increased to 8.85 per cent from 8.50 per cent. Meanwhile, the interest rate on deposits for five to ten years will be 9.00 per cent, 50 basis up from 8.50 per cent, SBI said. The bank has also revised the interest rates payable on deposits for senior citizens.
The interest payable for deposits for three to five years will be 9.35 per cent and for five to ten years, it will be 9.50 per cent, SBI said. Earlier, the bank had set a flat deposit rate of 9.00 per cent for deposits for more two years and less than ten years. It has now divided the slab into two parts.