India’s biggest bank State Bank of India or SBI has cut interest rates on fixed deposits or FDs, its second revision in about 15 days. SBI today lowered FD rates by 20-25 basis points. SBI also announced reduction in its MCLR by 10 bps across all tenors. The new rate of interest will come into effect from 10 September 2019. “In view of the falling interest rate scenario and surplus liquidity, SBI also realigns its interest rate on term deposits (TD) w.e.f. September 10. Bank slashes retail TD rates by 20-25 bps and bulk TD rates by 10-20 bps across tenors,” SBI said. For FDs maturing in 7 days to 45 days and 46 days to 179 days, the rate of interest remains unchanged at 4.50% and 5.50% respectively. SBI has slashed the interest rates by 20 basis points on deposits maturing in 180 days to less than 1 year. Now, with the latest rate cut by SBI, these FDs will fetch you an interest rate of 5.80%.
SBI latest FD rates (below ₹2 crore) for general public effective 10 September
7 days to 45 days 4.50%
46 days to 179 days 5.50%
180 days to 210 days 5.80%
211 days to less than 1 year 5.80%
SBI latest FD rates (below ₹2 crore) for general public for maturity between 1 year and 3 years
For FDs maturing in 1 year to less than 2 year, SBI has cut the rate by 20 basis points. Now these deposits will give 6.50% interest instead of 6.70% effective 10 September 2019.
SBI has reduced the interest rate on term deposits maturing in 2 years to less than 3 years by 25 basis points. SBI will now give 6.25% interest on FDs maturing in 2 years to less than 3 years.
1 year to less than 2 year 6.50%
2 years to less than 3 years 6.25%
SBI latest FD rates (below ₹2 crore) for general public for maturity between 3 years and 10 years
However, SBI has kept the rate unchanged on long-term FDs. Deposits maturing in 3 years to less than 5 years will fetch an interest rate of 6.25% and FDs maturing in five years to ten years will also continue to give 6.25% interest.
SBI latest FD rates (below ₹2 crore) for senior citizens effective 10 September
Senior citizens continue to get an additional 50 basis points over the FD interest rates. SBI has slashed the interest rates on FD for senior citizens by 20-25 basis points.
7 days to 45 days 5.00%
46 days to 179 days 6%
180 days to 210 days 6.3%
211 days to less than 1 year 6.3%
1 year to less than 2 year 7%
2 years to less than 3 years 6.75%
3 years to less than 5 years 6.75%
5 years and up to 10 years 6.75%
Many banks including, Axis Bank, HDFC Bank, PNB, Bank of Baroda, Canara Bank and Kotak Mahindra Bank have also revised FD interest rates in select buckets.