14 January, New Delhi: Only two months after the State Bank of India (SBI) slashed the fixed deposit rates, the country’s largest lender has further cut the rate on the investment instrument by 15 bps on long-term deposits maturing in 1 year to 10 years, with effect from 10 January onwards. The bank had cut the FD rates by 15 bps for maturity between one year to less than two years in the month of November 2019. However, the bank has kept the rates unchanged on deposits maturing in seven days to one year.
Here’s the latest FD rates offered by SBI, with effect from 10 January, 2020 onwards:
Ever since RBI started to cut its repo rate in its February 2019 Monetary Policy Committee, almost all banks have been reducing their FD card rates. RBI has cut the repo rate by 25 bps and the reverse repo by 25 bps (100 bps = 1 per cent). The repo rate currently stands at 5.15 per cent and reverse repo rate at 4.90 per cent.
Repo rate refers to the rate at which banks borrow money by selling their securities to the Central bank, while reverse reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks.
Along with SBI, other banks such as HDFC Bank, Punjab National Bank (PNB), Axis Bank, have already changed FD interest rates. Here’s the FD interest rates offered by various banks, as on 14 January, 2019.