State Bank of India, the country’s largest lender, has raised its deposit rate to a high of 7.25% in a special scheme under the tenure of 444 days. This is 15 basis points more than its prevailing highest rate and indicates a war among banks to raise deposits in a market situation where credit continues to grow faster. 

Named “Amrit Vrishti”, the scheme caters to both domestic and non-resident Indian customers. It offers an additional 0.50% interest rate to senior citizens.

The state-owned bank has also raised the benchmark marginal cost of fund-based lending rate (MCLR) by 5 to 10 basis points from Monday. One basis point is a hundredth of a percentage point.

Incidentally, the Reserve Bank of India (RBI) has been warning banks of the rising gap between credit and deposit growth and the systemic risk that can arise out of this. 

SBI’s new fixed deposit scheme is available for investment until 31 March 2025. 

The bank’s next highest interest rate for general public is 7.10% on a 400-day deposit. Senior citizens will enjoy an additional 0.50% interest rate. Named “Amrit Kalash”, this specific tenor scheme came into effect from 12 April 2023 and will be valid until 30 September 2024. 

SBI has revised for general public the interest rate on deposits with tenure of 180 days to 210 days to 6.25% with effect from 15 July 2024. This was earlier 6%. For senior citizens, this has gone up by 25 basis points to 6.75%.

Similarly, the bank has raised the interest rate by 25 basis points to 6.50% for deposits with tenure of 211 days to less than one year. For senior citizens this has gone up by 25 basis points to 7%. 

The interest rate on deposits with other tenures remains unchanged. SBI offers 7% interest rate for deposits between 2 years to less than 3 years. 

The interest rates of SBI range between 3.50% and 7.25% for regular citizens, and 4% and 7.75% for senior citizens.