New Delhi, August 23
The country’s largest lender State Bank of India today slashed interest rates on fixed deposits across various tenures by up to 0.5 percentage point, a move which will lower returns for savers.
In view of the falling interest rate scenario and surplus liquidity, SBI realigns its interest rate on term deposits with effect from August 26, 2019, SBI said in a statement. The move to reduce interest rate on fixed deposits by the country’s largest lender is expected to be followed by other lenders.
The bank has slashed retail term deposit rates by 10-50 basis points across tenors as well as bulk term deposit rates by 30-70 basis points across tenors, it said.
The bank has slashed the interest rate for the fixed deposits with maturity of 7-45 days to 4.5% from existing 5%.
The rate reduction 46-179 days, 180 days to less than one year maturities baskets is 25 basis points (0.25 percentage point) at 5.5% and 6%, respectively, while for maturity bucket of 1-2 years is only 10 basis points at 6.70%.
For top maturity period of 5-10 years, the decrease is again 25 basis points at 6.25%. The bank also said it has retained interest rate on savings bank deposit at 3% for customers with balances above Rs 1 lakh with a view to protecting the interest of savings bank depositors.
Customers with SB balance up to Rs 1 lakh will continue to get the rate of interest at 3.50%. With effect from May 1, 2019, SBI had linked the interest rate on savings bank deposits (for balances above Rs 1 lakh) with the repo rate. — PTI
No change in interest on savings account
- Interest rate for the fixed deposits with maturity of 7-45 days has been reduced to 4.5% from existing 5%
- The rate reduction for 46-179 days, 180 days to less than one year maturities baskets is 25 basis points at 5.5% and 6%, respectively, while for maturity bucket of 1-2 years is only 10 basis points at 6.70%
- Customers with savings bank balance up to Rs 1 lakh will continue to get 3.50% interest
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