The State Bank of India (SBI) has revised the interest rates on its fixed deposits also known as ‘FDs’ for the second time this year. The SBI has changed the interest rate on a few select maturities, with effect from 9th of May.
The new interest rates will be made applicable to new deposits & renewals of maturing deposits. Also, the rate of interest on “SBI Tax Savings Scheme 2006 (SBITSS)” Retail Deposits & NRO deposits will be aligned according to the proposed rates for domestic retail term deposits.
Revised State Bank of India FD Rates (For deposits below Rs 2 crore)
- The interest rate on fixed deposits ranging between ‘seven days and up to one year’ has remained unchanged.
- On FDs that are one year to less than two years, the rate of interest has been raised from 6.8% to 7% as per the SBI website.
- On Fixed Deposits which are two years to less than three years, the lender has cut interest rate from 6.8 percent to 6.75 percent.
- On deposits that are three years to less than five years, the rate of interest has been reduced marginally from 6.8 to 6.70 percent.
- On FDs which are five years to ten years, the interest rate has been decreased from 6.85 percent to 6.60 percent.
- State Bank of India pays interest rates to the tune of 5.75 to 7 percent to the customers for fixed deposits over a maturity period of 7 days to 10 years.
- Senior citizens of the country will continue to get an extra rate of interest of 0.5 % on their deposits.
Latest Saving Account Interest Rate Rules
At the beginning of this month, SBI had cut its marginal cost of funds based lending rate or MCLR by five basis points in all tenors, bringing down the home loan interest rate for its borrowers.
Starting from 1st of May, the country’s largest lender moved to a new interest rate rule on large savings account deposits and short-term loans. It had linked its interest rate on savings account having a balance above Rs. 1 lakh & short-term loans such as overdraft & cash credit facility to RBI’s repo rate that means the interest rates on huge SBI savings account deposits & on some short-term loans will change automatically when Reserve Bank of India changes its repo rate.
At present, the RBI repo rate stands at 6 percent after two back-to-back reductions in April and February. All SBI cash credit accounts & overdrafts with limits more than Rs. 1 lakh are linked to the RBI’s standard policy rate, plus a spread of 2.25 percent -amounting to 8.25%.
The State Bank of India has fixed its savings account rate on deposits above 1 lakh at 2.75 percent below RBI’s repo rate.
SBI is the country’s largest commercial bank in terms of deposits, assets, branches, consumers, and employees.