State Bank of India has slashed interest rates on fixed deposits by 40 basis points for all tenors. It is the second time the bank has cut the interest rates in this month. SBI mentioned on its website that the new rates are effective today i.e. 27th May. It also cut rates on bulk deposits (over 2 crores) by 50 basis points. The maximum rate for this is now under 3%.
After the most recent correction, SBI FDs between 7 days to 45 days will currently bring 2.9%. Term deposits between 46 days to 179 days will give 3.9%. FDs of 180 days to less than one year will bring 4.4%. Deposits maturing between 1 year and 3 years will give 5.1%. FDs with tenor 3 years to under 5 years will presently give 5.3% and those maturing in 5 years and 10 years will give 5.4%.
The latest interest rates are as follows:
7 days to 45 days – 2.9%
46 days to 179 days – 3.9%
180 days to 210 days – 4.4%
211 days to less than 1 year – 4.4%
1 year to less than 2 years – 5.1%
2 years to less than 3 years – 5.1%
3 years to less than 5 years – 5.3%
5 years and up to 10 years – 5.4%
For senior citizens, SBI is offering an additional 50bps interest rate. The interest rates for senior citizens are:
7 days to 45 days – 3.4%
46 days to 179 days – 4.4%
180 days to 210 days – 4.9%
211 days to less than 1 year – 4.9%
1 year to less than 2 years – 5.6%
2 years to less than 3 years -5.6%
3 years to less than 5 years – 5.8%
5 years and up to 10 years – 6.2%
On May 12, SBI had already slashed rates by 20bps for up to 3 years tenor. Before that, it cut rates on March 10. It has also started a new ‘SBI Wecare FD scheme for senior citizens’ in which the bank pays an additional 30bps (apart from the 50bps). It is applicable for deposits of more than five years and is open only till 30th September, 2020.
