New Delhi, November 8: India’s largest lender State Bank of India has decided to cut the rate of interest on Fixed Deposits (FD). The new interest rates will be applicable from November 10. For FDs of a duration of 1 to 2 years, the interest rate has been lowered by 0.15 per cent. In the past few months, many banks have reduced interest rates on fixed deposits. Banks have been cutting rates as the apex bank has cut repo rate by cumulative 135 bps this year. And SBI has also cut the marginal cost of fund-based lending rate (MCLR) by 0.05 per cent. SBI has cut interest rates for the seventh time in the last eight months.
Let’s quickly know what are the new rates of interest on SBI’s FDs:
- FDs between 7 to 45 days will fetch an interest rate of 4.50 per cent
- FDs between 46 to 179 days will fetch an interest rate of 5.50 per cent
- FDs between 211 days to 1 year will give an interest rate at 6.80 per cent
- FDs between 1 year to 2 years with fetch an interest of 6.25 per cent
- FDs between 2 to 3 years will fetch an interest rate of 6.25 per cent
- FDs 3 to 5 years will fetch an interest rate will be 6.25 per cent
However, senior citizens will keep on getting 0.50 per cent more interest rate. And thus they will get 5 per cent interest rate for FDs of duration 7 to 45 days.
SBI has also cut interest rates on bulk deposits (above Rs2 crore) by 30-75 bps across tenors. India's biggest bank also announced a cut in its MCLR by 5 bps across all tenors. With this cut one-year MCLR comes down to 8 per cent per annum from 8.05 per cent per annum with effect from 10th November 2019.