New Delhi: The State Bank of India (SBI), the country’s largest lender, announced Wednesday a reduction in the savings deposits interest rate. It also declared a reduction in interest rates on term deposits or fixed deposits (FDs) across select maturities. This will once again be a severe blow to the middle class who bank a lot on income through interests.
The cut in SBI interest rates comes on the back of the Reserve Bank of India (RBI)’s 135 basis points reduction in the repo rate – the interest rate at which it lends short-term funds to commercial banks.
SBI has announced a revision from 3.5 per cent to 3.25 per cent on savings deposit with a balance of up to Rs 1,00,000. The new interest rates will be effective, November 1, 2019.
SBI has cut interest rates applicable to retail term deposits and bulk term deposits by 10 and 30 basis points respectively for ‘1 year to less than 2 years’ tenor, according to a statement. The new FD rates will be effective from October 10, 2019.
In a release SBI said the revision in interest rates is ‘ in view of the adequate liquidity in the system’.
Agencies
