In a move that will provide better returns on fixed deposits, the country's largest lender, State Bank of India on Monday raised deposit rates by up to 1.5 per cent, across various maturities, with effect from Tuesday. According to an official release, SBI will offer a maximum interest rate of 8.75 per cent for deposits with a maturity period of 8 to 10 years, marking an increase of 100 basis points. The highest increase of 150 basis points will be in case of term deposits with a maturity of 46 to 90 days, where depositors will earn an interest of 5.5 per cent, against the existing 4 per cent.SBI's decision comes close on the heels of various private and public sector banks, including ICICI Bank, Punjab National Bank and Bank of India raising their deposit rates. These announcements come after RBI Governor Dr. Subbarao recently asked banks to hike deposit rates and lower lending rates, to raise the level of national savings, and to encourage investments needed for double-digit growth.