SBI announces Revision of 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

1. The revised interest rates on Domestic Term Deposits effective from December 11, 2006 would be as under:

---------------------------------------------------------------------------------------------
Existing w.e.f. August 19, 2006		Revised rates w.e.f. December 11, 2006
---------------------------------------------------------------------------------------------
Duration 			Interest Rate	Duration			Interest Rate
				(% p.a.)					(% p.a.)
---------------------------------------------------------------------------------------------
7 days to 14 days		3.50*	7 days to 14 days			3.75*
15 days to 45 days			4.75	15 days to 45 days		5.00
46 days to 179 days		5.25	46 days to 179 days			5.50
180 days to less than 1 year	6.25	180 days to less than 1 year		6.50
1 year to less than 3 years	6.75	1 year to less than 3 years		7.50
3 years to less than 5 years	7.00	3 years to less than 5 years		7.75
5 years and above		7.25	5 years and upto 10 years		8.00
---------------------------------------------------------------------------------------------

*Term deposits for maturity period of "7 days to 14 days" will continue to be accepted for amounts of Rs 1 crore and above.

2. The proposed rates of interest will be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on "Kanak Dhara" (in Rupees), "Capgains Plus" schemes and NRO deposits will be aligned as per the proposed rates for domestic term deposits. These rates of interest will also be made applicable to domestic term deposits from Cooperative Banks.

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

---------------------------------------------------------------------------------------------
Existing w.e.f. August 19, 2006		Revised rates w.e.f. December 11, 2006
---------------------------------------------------------------------------------------------
Duration 			Interest Rate	Duration			Interest Rate
				(% p.a.)					(% p.a.)
---------------------------------------------------------------------------------------------
1 year to less than 3 years		7.25	1 year to less than 3 years		8.00
3 years to less than 5 years		7.50	3 years to less than 5 years		8.25
5 years and above			7.75	5 years and upto 10 years		8.50
---------------------------------------------------------------------------------------------

4. The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rates and the rate applicable to SBI Pensioners of age 60 years and above will be 1.00% above the rate payable to senior citizens, subject to a ceiling of 9.00% p.a., i.e. the rates will not exceed 9.00% p.a. in any case.

5. Differential Rates of Interest

(i) The differential rates 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 December 11, 2006 as under :

- 25 bp above the card rate for term deposit of Rs 15 lakhs but less than Rs 1 crore.

(ii) CGMs of Circles/MCG/CAG will be given discretionary powers to quote 25 bp over and above the card rates for term deposits of Rs 15 Lacs to Rs 1 crore for maturities less than 1 year.

(iii) Differential interest for bulk deposits of Rs 1 crore and above will be decided by SME Business Unit in coordination with Treasury Department as per the extant instructions.

Business Units will contact SME Business Unit at Corporate Centre for special rates for bulk deposits of Rs 1 crore and above.

6. Premature payment of term deposits

The instructions regarding interest rate to be charged on premature payment of domestic term deposits continue as under:

a. 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.

b. Chief General Managers at Circles/ CAG/ MCG has been given discretion for reduction/ waiver of penalty for premature withdrawal of term deposits that have remained with the Bank for more than 1 year. The reduction/waiver in penalty may be permitted on satisfying genuine need for premature withdrawal and value of the connection.

c. No premature penalty will he levied from staff and SBI pensioners. Interest to be charged on premature withdrawal of term deposits by staff and SBI pensioners will be same as applicable for the period deposit has remained with the Bank.

These instructions are also applicable for premature withdrawal of existing term deposits.

7. The revised interest rates on Super Saver Term Deposits effective from November 27, 2006 would be as under:

-------------------------------------------------------------------------------------
Existing Rates w.e.f. August 19, 2006	      Revised Rates w.e.f. November 27, 2006
-------------------------------------------------------------------------------------
Amount (for    Public         Senior       |Amount (for   Public         Senior
tenure of 6    Interest       Citizens     |tenure of 6   Interest       Citizens
year and up    Rate (%p.a.)   (60 years    |year and up   Rate (%p.a.)   (60 years
to 10 years)		      and above)   |to 10 years)                 and above)
	 	              Interest     |                             Interest
	 	              Rate (%p.a.) |	   	  	         Rate (%p.a.)
-------------------------------------------------------------------------------------
Less than 
Rs. 1 lakh	7.75	8.25		    All Deposits    8.00	    8.50
Rs 1 lakh 
and above	8.00	8.50
-------------------------------------------------------------------------------------

a) The rate applicable to SBI Staff and SBI Pensioners (including Senior Citizen Pensioners) will be 9.00% p.a. with effect from November 27, 2006.

b) The rate applicable in case of premature withdrawal of these deposits will remain at 1.00% below the rate applicable for period deposits has remained with the Bank. The applicable interest rate will be based on interest payable on special term deposits. No discretion is granted to CGMs at Circles/ CAG/ MCG to waive penalty in respect of premature withdrawal of these deposits. SBI staff/ SBI Pensioners will also bear the same penalty as applicable to other depositors in case of premature withdrawal of these deposits.

c) 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.

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

e) No differential interest rate above card rate for high value deposits under the super saver term deposit scheme will be available.

8. SBI Tax Savings Scheme 2006 (SBITSS)

The rates of interest offered on SBI Tax Savings Scheme (SBITSS) will be revised upwards from 7.50% p.a. to 8.00% p.a. with effect from November 27, 2006. The details are as follows:

------------------------------------------------------------------------------------------------

		Existing Rate			Revised rates w.e.f. November 27, 2006
------------------------------------------------------------------------------------------------

General Public	7.50% p.a.			8.00% p.a.

Senior Citizens	0.50% above the rate applicable	0.50% above the rate applicable to general
		to general public,			public, i.e. 8.50% p.a.
		i.e. 8.00% p.a.

SBI Staff and	1.00% above the rate applicable	1.00% above the rate applicable to general
SBI Pensioners	to general public/senior		public/senior citizens with a ceiling of
		citizens with a ceiling of		9.00% p.a.
		8.50% p.a.
------------------------------------------------------------------------------------------------

All other terms and conditions governing the SBI Tax Savings Scheme will remain the same.

Source : Equity Bulls

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