Country’s largest lender, State Bank of India (SBI) has amended its Fixed Deposit (FD) rates in all the principles. The bank has cut the interest rates on fixed deposits of 45 days to ten years rapidly. SBI has reduced the interest rate from 5.75% to 5. 00%. On deposits maturing in 46 days to 179 days, the bank has reduced the interest rate to 5.75%. Previous it was offering an interest rate of 6.25%. For mature deposits from 180 days to 210 days, SBI has cut interest rate by 10 basis points. Now the bank will offer an interest rate of 6.25%.
For short term deposits of 211 days to less than one year, SBI has reduced the interest rate from 6.40% to 6.25%. These revised rates will apply to fixed deposits in all tenors effective from 1 August 2019, SBI has mentioned on its website.
On mid-term deposits ranging from one year to less than two years, State Bank of India has reduced the interest rates by 20 basis points. Now, these deposits will fetch you an interest rate of 6.80%.
Latest SBI FD rates
SBI has also slashed the interest rates on its long-term deposits. For deposits maturing in two years to less than three years, the bank has cut the interest rate by 5 basis points; now these FD will fetch you an interest rate of 6.70%.
For FDs maturing in three years to less than five years, SBI will offer an interest rate of 6.60%; earlier these FDs were fetching an interest rate of 6.70%. For deposits maturing in five years to ten years, SBI has reduced the interest rate from 6.60% to 6.50%
SBI had earlier tweaked interest rate on some select maturities effective from 9 May 2019.
Many banks are reducing interest rates on fixed deposits due to declining interest rates and surplus liquidity in the financial system. HDFC Bank, Axis Bank, PNB, Bob and Kotak Mahindra, among others, have revised their fixed deposit rates this month.
SBI’s cut comes days before the RBI is set to decide on its monetary policy. The central bank is widely expected to lower interest rates in next month’s policy meeting. The RBI so far this year cut the repo rate by a combined 75 basis points, leading to a sharp fall in bond yields.
Earlier, the government had cut interest rates on small savings instruments including PPF for the July-September quarter.