SBI FD Interest Rates: The State Bank of India has revised the interest rates for its fixed deposits across all tenors with effect from Thursday, August 1, 2019. The new interest rates for bulk deposits, or term deposits worth Rs 2 crore or above, have also come into effect from the same date. Notably, the interest rates for SBI bulk deposits have been bought at par with the retail deposits after the recent revision in interest rates.
SBI, the largest lender in India, has lowered interest rates for retail domestic term deposits below Rs 2 crore by 5-75 basis points. The highest decline of 75 bps to 5 per cent has been seen in the tenor of 7-45 days, whereas the smallest rate cut of 5 bps to 6.70 per cent will apply on the 2-year to less than 3-year tenor. Most of the tenors have seen a reduction of 10-20 bps.
On FDs maturing in 46-179 days, the interest rate will come down to 5.75 per cent from the 6.25 per cent applicable since early May. For deposits in the 180-210 days bucket the bank will offer 10 bps less at 6.25 per cent while the 211-364 days bucket will earn 15 bps lower, again at 6.25 per cent. The tenor of 1 year to less than 2 years will fetch 6.80 per cent from 7 per cent currently. The 3-5 year bucket will earn 10 bps lower at 6.60 per cent.
In the case of bulk deposits too, almost all the tenors have seen a reduction in the range of 5-75 bps. Interest rates for FDs maturing within 1-2 years alone have been kept unchanged to 6.70 per cent. The highest change has been once again seen in the tenor of 7-45 days, which will now earn an interest of 5 per cent.
Both fixed and bulk deposits continue to offer interest rates by 50 bps higher than the normal rates to senior citizens.
This development comes in the wake of a liquidity surplus in the system and the softening interest rates. In the wake of the RBI's monetary policy committee (MPC) voting to reduce the repo rate by 25 basis points (bps) to 5.75 per cent in June, for the third time in a row, some of the country's leading private sector lenders including ICICI Bank, Kotak Mahindra Bank and Axis Bank, had also cut their interest rates on deposits by varying percentages.
According to Care Ratings, the banking system has been in liquidity surplus since end-May - barring June 20 - after being in deficit for seven months. In the week of June 15-19 , "the (net) liquidity surplus was estimated to be over Rs 1.3 lakh crore on each of the 5 days, despite outflows towards GST payments, fortnightly reporting of scheduled commercial banks with RBI and government market borrowings", read the report.