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To invest with minimal risk and complexity, look no further than fixed deposits. The State Bank of India (SBI) has raised interest rates on fixed deposits (FDs), following in the footsteps of private sector bank HDFC Bank. An increase of 10 basis points (bps) has been made to the interest rate on FDs under Rs 2 crore, according to SBI’s website. The interest rate on these FDs has increased from 5% to 5.1 percent. Older account holders can expect an interest rate increase to 5.6 percent from the current 5.5 percent.

The new interest rates on SBI FDs will take effect on January 15, 2022. All FDs, with the exception of those with terms of one year to less than two years, are subject to the old interest rates. FDs with SBI pay 5.40 percent interest for terms of five to ten years. An additional 50 basis points will be applied to these deposits for the benefit of the elderly.