SBI Cuts FD Rates Second Time in a Month

SBI Cuts FD Rates Second Time in a Month

State Bank of India (SBI) has cut rates of interest on FDs (fixed deposits) by 40 basis points (bps) across all tenures. It is the second rate cut by SBI in a month. The reviewed FD rates are effective from today, i.e., 27.05.2020.

SBI has also cut interest rates on its bulk deposits of Rs. 2 crores or more by up to 50 bps. The maximum rate offered by SBI under this category is 3%. The reviewed rates under this category are also applicable from today.

After the latest revision, here are changes in the rates:

  • FDs of SBI for tenure between 7 to 45 days will now fetch an interest rate of 2.9%. Term deposits between 46 to 179 days will fetch a 3.9% interest rate.
  • FDs for 180 days to less than 1-year tenure will fetch 4.4%
  • FDs with maturity between 1 year and 3 years will give 5.1% interest rate
  • FDs with tenure of 3 years to less than 5 years will give 5.3%
  • FDs maturing in 5 years and up to 10 years will fetch a 5.4% interest rate

SBI New FD Interest Rates – Table

Tenure of FD Reviewed Rate of Interest

7 days – 45 days

2.9%

46 days – 179 days

3.9%

180 days – 210 days

4.4%

211 days – less than 1 year 

4.4%

1 year – less than 2 years

5.1%

2 years – less than 3 years

5.1%

3 years – less than 5 years

5.3%

5 years – up to 10 years

5.4%

SBI offers an additional 50 bps interest rate for senior citizens across all tenures.

SBI New FD Interest Rates for Senior Citizens – Table

Tenure of FD Reviewed Rate of Interest

7 days – 45 days

3.4%

46 days – 179 days

4.4%

180 days – 210 days

4.9%

211 days – less than 1 year 

4.9%

1 year – less than 2 years

5.6%

2 years – less than 3 years

5.6%

3 years – less than 5 years

5.8%

5 years – up to 10 years

6.2%

SBI had reduced interest rates on term deposits for tenure up to 3 years by 20 bps on 12.05.2020. On 28.03.2020, SBI had cut interest rates on FDs by 20-50 bps across tenures. That was the second rate cut in March. The bank had earlier cut interest rates on FDs on 10th March.

Earlier in the month, SBI also announced a special FD scheme for senior citizens named ‘SBI Wecare,’ wherein the bank will provide 30 bps as an additional premium (in addition to the existing 50 bps) to senior citizens. This scheme is applicable for deposit tenure of 5 years or more and is open for a limited period of up to 30th September, 2020.

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