RBI Raised Interest Rates On Deposits Of Two Years

State Bank of India, the country''s largest bank, on April 26 raised interest rates on deposits of two years and above with effect from June 1. The deposits for duration two years to less than three years will now earn an interest of 8.75 per cent, the same as deposits of one year to less than two years. Interest rates on deposits of three years to less than five years has been increased to 8.85 per cent from 8.5 per cent. Rates on deposits of five years and up to 10 years will be 9 per cent as against 8.5 per cent at present.

For senior citizens, the deposit of two years and up to 10 years has been bifurcated into two categories - deposit of three years to less than five years and 5 years to 10 years. Interest rates on the new categories will be 9.35 per cent and 9.5 per cent as against 9 per cent earlier, it said. Interest rates on senior citizen deposits of one year to less than two years will continue to be 9.25 per cent.