State Bank of India or SBI, country's largest lender, has reduced fixed deposit (FD) interest rates across all maturities. The SBI FD rates has been lowered by 20-25 basis points (or 0.20-0.25 percentage point) across tenors in the retail segment, and bulk segment has seen a reduction of 10-20 basis points (or 0.10-0.20 percentage point). The new rates are effective from today. "In view of the falling interest rate scenario and surplus liquidity, SBI realigns its interest rate on fixed deposits," the bank said in a statement.
The bank now offers an interest rate of 4.5 per cent to general public and 5 per cent to senior citizens on fixed deposits of below Rs 2 crore for a tenor of 7-45 days.
Here are revised SBI's interest rates for Fixed Deposit (FDs) below Rs. 2 crore, effective from today:
|Tenors||Interest rates for general public||Interest rates for senior citizens|
|7 days to 45 days||4.5%||5.00%|
|46 days to 179 days||5.50%||6.00%|
|180 days to 210 days||5.80%||6.30%|
|211 days to less than 1 year||5.80%||6.30%|
|1 year to less than 2 year||6.50%||7.00%|
|2 years to less than 3 years||6.25%||6.75%|
|3 years to less than 5 years||6.25%||6.75%|
|5 years and up to 10 years||6.25%||6.75%|
Fixed deposit interest rates are subject to change from time to time. Earlier, SBI revised its FD rates on August 26. HDFC Bank and Punjab National Bank (PNB) also revised their fixed deposit (FD) interest rates recently.
In a separate announcement, SBI has reduced its benchmark lending rate by ten basis points or 0.10 percentage points across all tenors. The Reserve Bank of India's Monetary Policy Committee (MPC) had cut its repo rate by 35 basis points last month, in its fourth downward revision so far this year. Repo rate is the interest rate at which the RBI lends money to commercial banks.