Interest rates are finally inching up. Following the footsteps of HDFC Bank, India’s largest lender State Bank of India (SBI) has raised deposit rates.

SBI has hiked the interest rate on fixed deposits below Rs 2 crore with a tenure of 1 year to less than 2 years by 10 basis points. The FDs will now fetch 5.1%, up from 5%, with effect from January 15. For senior citizens, the rate has increased to 5.60% from 5.50%, according details on the bank’s website.

Though marginal, the hike indicates the time has arrived to brace up for higher interest rates.

The interest rates on the fixed deposit of other tenures remain unchanged.  In the 5 to 10 year category, SBI offers an interest rate of 5.40% while for senior citizens it is 6.20%.

HDFC Bank, the country’s largest private lender, has increased interest rates on fixed deposits for select tenors. Coming into effect from January 12, the bank has raised interest rates on FDs of less than Rs 2 crore with maturities of above 2 years by 5-10 basis points. The FDs between 2 years 1 day and 3 years will earn 5.2%, 3 years 1 day and 5 years will get 5.4% and 5 years 1 day and 10 years will fetch 5.6%.