State Bank of India (SBI) has again slashed interest rates on fixed deposits (FDs). This is the second revision by the SBI in last 15 days and is the fifth time the bank has moved for a reduction in the Marginal Cost of funds based Lending Rate (MCLR) this year. India’s biggest bank today reduced FD rates by 20-25 basis points (bps) and cut MCLR by 10 bps across all tenor. The new rate of interest will come into effect from September 10, 2019.
The lender (SBI) said that the action was taken to realign its interest rates on term deposits "in view of the falling interest rate scenario." Therefore, from September 10, the MCLR will come down to 8.15 per cent from 8.25 per cent.
For FDs maturing in 7 to 45 days and 46 to 179 days, the rate of interest remains unchanged at 4.50 per cent and 5.5 per cent 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 per cent.
The latest FD rates applicable for the general public with effect from September 10 for FDs ranging from 7 days to 45 days will fetch you an interest rate of 4.50 per cent and for 46 days to 179 days will fetch you an interest rate of 5.50 per cent. And if you will invest in FDs of duration 180 days to 210 days, the rate of interest would be 5.80 per cent.
For FDs maturing in 1 year to less than 2 years, SBI has cut the rate by 20 basis points. Now, these deposits will give 6.50 per cent interest instead of 6.70 per cent effective from September 10, 2019.
SBI has reduced the interest rate on term deposits maturing in 2 years to less than 3 years by 25 basis points. SBI will now give 6.25 per cent interest on FDs maturing in 2 years to less than 3 years.
The interest rate for FDs of duration 1 year to less than 2 year stands at 6.5 per cent. For 2 years to less than 3 years, the interest rate is 6.25 per cent.
However, SBI has kept the rate unchanged on long-term FDs. Deposits maturing in 3 years to less than 5 years will fetch an interest rate of 6.25 per cent and FDs maturing in five years to ten years will also continue to give 6.25 per cent interest.
Senior citizens continue to get an additional 50 bps over the FD interest rates. SBI has slashed the interest rates on FD for senior citizens by 20-25 bps. For senior citizens investing in FDs ranging from 7 days to 45 days is 5 per cent, for 46 days to 179 days will get you an interest rate of 6 per cent. FDs of duration 180 days to 210 days will get you an interest rate of 6.3 per cent.
Many banks including, Axis Bank, HDFC Bank, PNB, Bank of Baroda, Canara Bank and Kotak Mahindra Bank, Bank of India have also revised FD interest rates in select buckets.