Ahead of the Reserve Bank of India's monetary policy review on December 5, State Bank of India (SBI) has hiked interest rates on fixed deposits (FD) by 5-10 basis points for select tenors.
The revised rates will be applicable from November 28 for FDs of less than Rs 1 crore.
According to a notification on the banks' website, FDs with maturity periods of 1-2 years will fetch an interest of 6.8 percent, up from 6.7 percent earlier.
Similarly, interest on FDs with tenors of 2-3 years has been increased to 6.8 percent from 6.75 percent earlier.
Interest rates offered to senior citizens on FDs with the same tenors have also been increased by a corresponding amount.
In the recent months, both public and private banks have increased the interest rates they offer on FDs.