State Bank of India or SBI, country's largest lender, on Wednesday announced a reduction in its savings deposits interest rate. It also announced a reduction in interest rates on term deposits or fixed deposits (FDs) across select maturities. The cut in SBI interest rates comes on the back of the Reserve Bank of India (RBI)'s 135 basis points reduction in the repo rate - the key interest rate at which it lends short-term funds to commercial banks - so far this year. (Also read: SBI Offers Debit Card EMI Facility On Point-Of-Sale Transactions To Select Customers)
On savings deposits, SBI has announced a revision from 3.5 per cent to 3.25 per cent on balances up to Rs 1 lakh. The new savings deposits interest rates will be effective from November 1, 2019.
SBI has cut interest rates applicable to retail term deposits and bulk term deposits by 10 and 30 basis points respectively for '1 year to less than 2 years' tenor, according to a statement. The new FD rates will be effective from October 10, 2019.
SBI said the revision in interest rates is " in view of the adequate liquidity in the system".
Here are the interest rates on retail domestic term deposits or fixed deposits below Rs 2 crore:
|Maturity period||Interest rate|
|For general public||For senior citizens|
|Existing (with effect from 10.09.2019)||Revised (with effect from 10.10.2019)||Existing||Revised|
|46 days to 179 days||5.5%||5.5%||6%||6%|
|180 days to 210 days||5.8%||5.8%||6.3%||6.3%|
|211 days to less than 1 year||5.8%||5.8%||6.3%||6.3%|
|1 year to less than 2 year||6.5%||6.4%||7%||6.9%|
|2 years to less than 3 years||6.25%||6.25%||6.75%||6.75%|
|3 years to less than 5 years||6.25%||6.25%||6.75%||6.75%|
|5 years and up to 10 years||6.25%||6.25%||6.75%||6.75%|
Last week, the central bank lowered the repo rate by 0.25 percentage point to 5.15 per cent. The central bank's Monetary Policy Committee also maintained an accommodative stance on policy, which rules out any increase in the key interest rates for now