Mumbai: The country’s largest lender the State Bank of India (SBI) slashed interest rates Friday 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. SBI 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, the statement further informed. it said.
SBI has slashed the interest rate for the fixed deposits with maturity of 7-45 days to 4.5 per cent from existing five per cent. 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 per cent and six per cent respectively while for maturity bucket of 1-2 years it is only 10 basis points at 6.70 per cent.
For top maturity period of 5-10 years, the decrease is again 25 basis points at 6.25 per cent. The bank also said that it has retained interest rate on savings bank deposit at three per cent for customers with balances above Rs 1,00,000 lakh with a view to protecting the interest of savings depositors.
Customers with balance up to Rs 1,00,000 will continue to get the rate of interest at 3.50 per cent despite cut in the repo rate by the RBI earlier this month.
Agencies
