SBI cuts interest rates on fixed deposits across tenors

The country's largest lender State Bank of India (SBI) has reduced interest rates on retail term deposits by up to 40 basis points (bps) across all tenors.

This is the second reduction in fixed deposits interest rates by the lender in May. It had reduced its deposit rates on May 12.

The new rates of interest, effective from Wednesday, shall be made applicable to fresh deposits and renewals of maturing deposits.

For deposits maturing in seven days to 45 days, the lender is offering an interest rate of 2.90 per cent as against 3.30 per cent earlier, according to the SBI website.

The revised rate for 180 days to 210 days bracket is 4.40 per cent compared to 4.80 per cent.

FDs maturing in one year to less than two years will now fetch an interest rate of 5.10 per cent as against 5.50 per cent.

Interest rate on deposits in the five years to up to 10 years tenor will be 5.40 per cent compared to 5.70 per cent.

For senior citizens also, interest rates on retail term deposits across all tenors have been cut by up to 40 basis points.

The lender has also slashed interest rates on bulk deposits (Rs 2 crore and above) by up 50 basis points.

Recently, SBI chairman Rajnish Kumar had said that in the current scenario interest rates are going to reduce. "The reduction in interest rates will be for both borrowers and depositors," he had said.