After going for rate hikes in February, March and May, State Bank of India, the country’s largest nationalised bank, has increased rates once again. The rate hikes come in the backdrop of rising bond yields due to a tighter monetary policy by the US Fed. The Reserve Bank of India (RBI) has also hiked rates in its June monetary policy.
You can view the full table of rate hikes below:
|Tenors||Existing for Public w.e.f. 28.05.2018||Revised For Public w.e.f. 30.07.2018||Existing for Senior Citizens w.e.f. 28.05.2018||Revised for Senior Citizens w.e.f. 30.07.2018|
|7 days to 45 days||5.75||5.75||6.25||6.25|
|46 days to 179 days||6.25||6.25||6.75||6.75|
|180 days to 210 days||6.35||6.35||6.85||6.85|
|211 days to less than 1 year||6.40||6.40||6.90||6.90|
|1 year to less than 2 year||6.65||6.70||7.15||7.20|
|2 years to less than 3 years||6.65||6.75||7.15||7.25|
|3 years to less than 5 years||6.70||6.80||7.20||7.30|
|5 years and up to 10 years||6.75||6.85||7.25||7.35|
Note that the highest SBI rate is still 6.75%. On the other hand, you can get 7.6% on your PPF account. Specialised schemes such as the Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi also have higher rates at 8.3% and 8.1%, respectively. You can find a list of such schemes and their rates here.
You can also potentially get higher rates by opening an account in a smaller bank. Alternatively, you can get a higher rate by investing in Non-Convertible Debentures (NCDs). Shriram Transport closed its 5 year NCDs recently at 9.5%. Prior to that JM Credit Solutions offered a 9.75% rate on its NCDs in May-June 2018. They had a tenure of 38 months to 10 years. Note that bank fixed deposits or government schemes carry a much lower risk than corporate NCDs.