The country's biggest lender State Bank of India slashed the fixed deposit rates across multiple tenors for general customers as well as senior citizens. The rates have been reduced by up to 50 bps in some tenors, while some tenors witnessed a reduction of 10 bps. The new rates were made applicable on March 10. The last rate cuts on FDs were made applicable on February 10.
As per the latest revision, the fixed deposit rate for a period of 7 days to 45 days has been reduced to 4 per cent from the earlier 4.50 per cent, while it has been reduced to 4.50 per cent from 5 per cent for senior citizens.
For the 1 year to less than 2 years, 2 years to less than 3 years, 3 years to less than 5 years and 5 years to up to 10 years tenors, the rates have been slashed by 10 bps. For the general customers, the interest rate is now 5.90 per cent from the earlier 6 per cent, while it is 6.40 per cent from the 6.50 per cent for senior citizens.
"The interest rate payable to SBI Staff and SBI pensioners will be 1.00 per cent above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50 per cent above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1 per cent) and resident Indian Senior Citizens (0.50 per cent)," said the lender.
The bank also cut Marginal Cost of Funds Based Lending Rate (MCLR) by up to 15 bps across a few tenors. The new MCLR rates also came into effect from March 10.
SBI is the largest commercial bank in India with a market share of 25 per cent each in home loans and auto loans.