State Bank of India revises interest rates on domestic term deposits

State Bank of India (SBI) has announced about the following revision in interest rates:

A] Revision of Interest rates on domestic term deposits

a. It has been decided to revise interest rates on Domestic Term Deposits effective from August 19, 2006 as under:

------------------------------------------------------------------------------------------
Existing w.e.f. May 01, 2006		Revised rates w.e.f. August 19, 2006
------------------------------------------------------------------------------------------
Duration 			Interest Rate	Duration			Interest Rate
			(% p.a.)						(% p.a.)
------------------------------------------------------------------------------------------
7 days to 14 days			3.00*	7 days to 14 days			3.50*
15 days to 45 days			4.50	15 days to 45 days			4.75
46 days to 179 days		5.00	46 days to 179 days		5.25
180 days to less than 1 year	6.00	180 days to less than 1 year	6.25
1 year to less than 3 years		6.25	1 year to less than 3 years		6.75
3 years to less than 5 years	6.50	3 years to less than 5 years	7.00
5 years and above			7.00	5 years and upto 10 years		7.25
------------------------------------------------------------------------------------------

*Term deposits for maturity period of "7 days to 14 days" will continue to be accepted for amounts of Rs 10 million and above.

b. The interest rates payable on deposits of Senior Citizens (60 years and above) stands revised as under:

------------------------------------------------------------------------------------------
Existing w.e.f. May 01, 2006		Revised rates w.e.f. August 19, 2006
------------------------------------------------------------------------------------------
Duration 			Interest Rate	Duration			Interest Rate
			(% p.a.)					(% p.a.)
------------------------------------------------------------------------------------------
1 year to less than 3 years		6.75	1 year to less than 3 years		7.25
3 years to less than 5 years	7.00	3 years to less than 5 years	7.50
5 years and above			7.50	5 years and upto 10 years		7.75
------------------------------------------------------------------------------------------

c. Differential rate of interest

The differential rate of interest for single domestic term deposits for maturity of ´1 year and above´ to high value deposits from all segments revised with effect from August 19, 2006 as under :

- 25 bp above the card rate for term deposit of Rs 1.50 million but less than Rs 10 million.

The additional rate of interest shall be payable provided the deposit runs for the full contractual period. If withdrawn prematurely, interest will be payable as per normal card rate, less applicable penalty.

d. Premature withdrawal of term deposits: The instructions regarding interest rate to be charged on premature withdrawal of domestic term deposits shall continue as under:

- Interest to be charged on premature withdrawal of term deposits at 0.5% below the rate applicable for the period deposit has remained with the Bank.

e. Super Saver Term Deposit scheme

It has been decided to revise interest rate on ´Super Saver Term Deposit´ with effect from August 19, 2006 as under:

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Existing w.e.f. May 01, 2006


Amount			Public			Senior Citizens 
(for tenure 		Interest 			(60 years and 
of 6 years 		Rate 			above)	
and up to 10 		(% p.a.)			Interest Rate
years)						(% p.a.)


For all 			7.50			8.00
deposits



Revised rate w.e.f. August 19, 2006



Amount			Public			Senior Citizens 
(for tenure 		Interest 			(60 years and 
of 6 years 		Rate 			above)	
and up to 10 		(% p.a.)			Interest Rate
years)						(% p.a.)



Less than 		7.75			8.25
Rs 0.10 mn


Rs 0.10 mn and		8.00			8.50
above

- The rate applicable in case of premature withdrawal of these deposits now stands revised to 1.00% below the rate applicable for period deposits has remained with the Bank with effect from August 19, 2006. The applicable interest rate will be based on interest payable on special term deposits.

- These deposits will be accepted for maturity of ´6 years and up to 10 years´ with minimum amount of Rs 10000/- and in multiples of Rs 1000/- thereafter.

- Loan facility will be made available against these deposits as per extant instructions.

Source : Equity Bulls

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