SBI Cuts Interest Rates on Fixed Deposit

SBI Cuts Interest Rates on Fixed Deposit

https://www.fundstiger.com/sbi-fd-interest-rates/

State Bank of India (SBI), in view of the falling interest rate scenario and surplus liquidity, has announced a reduction in fixed deposit interest rates across all maturities. In a press release, the bank stated that the new rates will be effective from August 1, 2019.

SBI has cut rates on retail term deposits below Rs 2 crore and on bulk term deposits above Rs 2 crore. For time deposits with longer tenors, there is a reduction up to 20 basis points (bps) in the retail segment and 35 bps in the bulk segment. Interest rates have been slashed by 50-75 bps for time deposits with shorter tenors, i.e., up to 179 days.

• The SBI has cut deposit rates by 5-75 basis points across tenures. Shorter-tenure deposits have seen a higher quantum of cut than longer deposits. The country’s largest lender State Bank of India (SBI) has revised its fixed deposit (FD) rates across all tenors. The bank has sharply cut interest rate on fixed deposits ranging from 45 days to ten years.
• On FDs maturing in seven days to 45 days, SBI has reduced the rate of interest from 5.75% to 5. 00%. On deposits maturing in 46 days to 179 days, the bank has reduced the interest rate to 5.75%. Earlier it was offering an interest rate of 6.25%. For deposits maturing in 180 days to 210 days, SBI has cut the interest rate by 10 basis points. Now the bank will offer an interest rate of 6.25%.
• For short-term deposits having maturity ranging from 211 days to less than one year, SBI has slashed the interest rate to 6.25% from 6.40%.
• The revised rates will be applicable on term deposits of all tenors with effect from 1 August 2019, SBI stated on its website.
• On medium-term deposits of maturity ranging from one year to less than two years, SBI has reduced the interest rates by 20 basis points to 6.80 % from 7.00 % at present.
• For longer term deposits maturing in two years to less than three years, the bank has slashed interest rate by 5 basis points to 6.70 % from 6.75%.
• For FDs maturing in three years to less than five years, SBI will offer an interest rate of 6.60 per cent, 10 basis points lower than existing rate of 6.70% . For deposits maturing in five years to ten years, SBI has reduced the interest rate to 6.50% from 6.60 % at present.
• SBI had earlier tweaked interest rate on some select maturities effective 9 May 2019.
• Banks have been reducing interest rates on fixed deposits due to a fall in lending rates after the Reserve bank thrice reduced its policy rate. Several banks, including HDFC Bank, Axis Bank, PNB, BoB, and Kotak Mahindra, among others, revised their fixed deposit rates this month.
• SBI’s interest rate cut comes days ahead of RBI’s monetary policy revision. The central bank is widely expected to lower interest rates in next month’s policy meeting. The RBI so far this year cut the repo rate by a combined 75 basis points, leading to a sharp fall in bond yields.
• Simultaneously, the government had also cut interest rates on small savings instruments, including PPF for the July-September quarter.
• Fixed deposits with maturity between 180 days to 210 days will now get an interest rate of 6.25 percent, 10 basis points lower than earlier.
• SBI has slashed the interest rate on short-term deposits ranging from 211 days to less than a year to 6.25 percent from 6.40 percent.
• The revised rates on all the term deposits across all tenors will be effective August 1. 2019.
• Mid-term deposits from one year to less than two years will now get 20 basis points lower interest rates at 6.80 percent.
• For time deposits with longer tenors, there is a reduction of up to 20 bps in the retail segment and 35 bps in the bulk segment, SBI said. It has also cut rates on bulk deposits of Rs 2 crore and above.

Here is a look at the revised fixed deposit rates: (All figures in % per annum)

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