India's largest lender State Bank of India has cut interest rates on fixed deposits (FDs) by 20 basis points. All tenors up to 3 years will be impacted by this rate cut. The change in FD interest rates will come into effect from May 12.
"SBI has slashed its interest rates on retail term deposits by 20 bps for 'up to 3 years' tenor in view of adequate liquidity in the system as well as with the bank," the bank said in a statement.
SBI FDs between 7 days to 45 days will now fetch 3.3 per cent, while tenor from 46 days to 179 days will fetch 4.3 per cent.
For 180 days to 200 days and 211 days to less than a year tenors, FDs will now fetch 4.80 per cent from 5 per cent. One year to less than 2 years tenor and 2 years to less than 3 years tenor will also fetch 20 bps less from 5.70 per cent to 5.50 per cent.
Tenors from 3 years to less than 5 years and from 5 years to up to 10 years have been kept unchanged.
FD interest rates for senior citizens have been slashed by 20 bps as well. For tenor 7 days to 45 days, rates have been changed from 4 per cent to 3.80 per cent, while it has been changed to 4.80 per cent from 5 per cent for 46 days to 179 days tenor.
For 180 days to 210 days and 211 days to less than a year tenors, rates have been slashed from 5.50 per cent to 5.30 per cent. SBI FDs for senior citizens will now fetch 6 per cent from 6.20 per cent for 1 year to less than 2 years and 2 years to less than 3 years tenors.
For 5 years up to 10 years tenor, rates have been changed to 6.50 per cent from 6.20 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)," the bank stated.
The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits, stated the bank.