SBI's largest associate bank, State Bank of Bikaner and Jaipur (SBBJ) announced a hike in the interest rates of its fixed deposit.
SBBJ has raised the rate of deposit with a maturity of 2 to 3 years by 100 basis points to 10.75% from 9.75%. However the rates for deposits with other tenure remain unchanged. The bank had last revised its fixed deposit rates on September 3rd.
On September 3rd, the bank had raised the interest rate for 2 to 3 years of deposit by 25 basis points to 9.75%. For term deposit between 1 and 2 years, the rates were revised upward by 50 basis points to 10.25%.
On October 1st, SBI has launched a new 1000 day deposit scheme that offers 10.5% interest rate. In fact almost all the banks have raised its short-term interest rates following the liquidity conditions in the market.
State run, PNB increased its fixed deposit rates by 25 to 75 basis points for various maturities.
Also banks are offering an additional 50 basis points interest rate over the card rates to the senior citizens.
Currently these fixed deposits seem to the best option to make an investment because the interest rates are likely to decline in the coming times due the recent cuts in the repo rate and CRR.