The State Bank of India (SBI), India’s biggest bank has cut interest rates on fixed deposits (FDs). This time it is the second revision in about 15 days. Today the Public Sector Bank lowered its FD rates by 20-25 basis points. SBI has also announced a reduction in its MCLR by 10 bps across all tenors. The new rate of interest will come into effect from 10 September 2019.
SBI said, “ In view of the falling interest rate scenario and surplus liquidity, SBI also realigns its interest rate on term deposits (TD) w.e.f. September 10. Bank slashes retail TD rates by 20-25 bps and bulk TD rates by 10-20 bps across tenors”.
For FDs maturing in 7 days to 45 days and 46 days to 179 days, the rate of interest remains unchanged at 4.50% and 5.50% respectively. SBI has slashed the interest rates by 20 basis points on deposits maturing in 180 days to less than 1 year. Now, with the latest rate cut by SBI, these FDs will fetch you an interest rate of 5.80%.