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What Latest Changes In SBI Interest Rates In Select Financial Products Mean For You

SBI account: State bank of India has in past few weeks changed interest rates applicable to certain savings accounts, FD accounts and loan accounts.

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What Latest Changes In SBI Interest Rates In Select Financial Products Mean For You

SBI interest rate: The country's largest bank has revised its interest rates on select financial products


SBI recently made certain changes to its interest rates in different financial products. On its savings bank account, balances above Rs 1 lakh fetch a lower interest rate of 3.25 per cent this month, compared with 3.5 per cent previously. This month, SBI also announced a revision in FD or fixed deposit - also known as term deposit - interest rates in select maturities. The country's largest bank has also marginally reduced its MCLR or marginal cost of funds-based lending rate across tenors, making its loans linked to the key lending rate cheaper with effect from May 10. (Also read: Here's a comparison of SBI interest rates on fixed, recurring deposits above Rs 2 crore)

Here are some details of how SBI has revised its interest rates applicable to savings accounts, term deposits (such as fixed and recurring deposits) and loans:

(Also read: Minimum balance rules of SBI, other major commercial banks compared here)

SBI interest rates on savings account

With effect from May 1, 2019, SBI pays interest at the rate of 3.25 per cent on account balances above Rs 1 lakh. SBI's interest rate for savings account deposits above Rs 1 lakh will attract an interest rate of 2.75 per cent below the repo rate, according to the bank's corporate website - sbi.co.in. With the repo rate - the key interest rate at which the Reserve Bank of India lends short-term funds to commercial banks - currently at 6 per cent, this translates to a 3.25 per cent interest rate on such savings accounts.

As per existing rates, SBI offers an interest rate of 3.5 per cent on savings bank deposits up to Rs 1 crore and 4 per cent on those above Rs. 1 crore, according to the bank's website.

SBI interest rate on FD 

SBI has revised interest rates on maturity periods between one year and 10 years with effect from May 9. Term deposits, such as fixed deposits (FD) and recurring deposits (RD), are fixed income instruments that yield fixed returns over a pre-defined period of lock-in. For retail domestic term deposits - or fixed deposits - up to Rs 2 crore, SBI pays interest rates to the tune of 5.75-7 per cent to the general public over a maturity period (also known as lock-in period) of seven days to 10 years, according to the bank's portal.

TenorsExisting interest rates with effect from February 22, 2019Revised interest rates with effect from May 9, 2019
General public Senior citizensGeneral public Senior citizens
7 days to 45 days5.75%6.25%6.25%5.75%
46 days to 179 days6.25%6.75%6.75%6.25%
180 days to 210 days6.35%6.85%6.85%6.35%
211 days to less than 1 year6.40%6.90%6.90%6.40%
1 year to less than 2 year6.80%7.30%7.50%7%
2 years to less than 3 years6.80%7.30%7.25%6.75%
3 years to less than 5 years6.80%7.30%7.20%6.70%
5 years and up to 10 years6.85%7.35%7.10%6.60%
(Source: sbi.co.in)

(Also read: All about SBI interest rate on deposits in different account types

SBI FD interest rate for senior citizen

SBI offers slightly better returns to senior citizen customers compared to the general public. On fixed deposits up to Rs 2 crore, SBI pays interest rates in the range of 6.25-7.5 per cent to the senior citizens, 50 basis higher compared to the general public across maturities, according to its website.

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(Also read: Zero balance savings account: Interest rate, facilities offered by SBI, HDFC Bank)

SBI loan interest rate (home loan and other loan interest rates)

With the recent cut in the MCLR by State Bank of India, the total reduction in the home loan rates since April 10, 2019 stands at 15 basis points, according to a statement by the bank.

State Bank of India MCLRs with effect from May 10

TenorExisting MCLRRevised MCLR
Over night8.15%8.10%
One Month8.15%8.10%
Three Month8.20%8.15%
Six Month8.35%8.30%
One Year8.50%8.45%
Two Years8.60%8.55%
Three Years8.70%8.65%
(Source: sbi.co.in)

The moves by State Bank of India come on the back of a 25-basis-point reduction by the RBI in repo rate in April.



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