SBI reduces FD rates, new rates will be applicable from 10 February

A day after the monetary policy review meeting on behalf of the Reserve Reserve Bank of India (RBI), State Bank of India has cut the interest rates of retail FD. The new FD rets issued by the bank will come into effect from 10th February. In view of surplus cash in the system, SBI has withdrawn its interest rate on retail term deposits (less than Rs.2 Crores) and bulk term deposits (Rs.2 Crs and above) since February 10, 2020, SBI said in a statement. The bank has reduced term deposits in the retail segment at the rate of 10-50 bps, and 25-50 bps in the bulk segment. The bank has announced deduction for all tenure except the maturity period from 7 days to 45 days. SBI has not made any change in the interest rates on these deposits. The bank has cut FD resorts by 15 bps on maturity periods ranging from 1 to 2 years in January.

SBI has cut the interest rate by 50 bps for FD from 46 days to 179 days. Now, these deposits will get interest rate of 5%. The bank will provide an interest rate of 5.50% for FD stoked from 180 days to 210 days and in less than 1 year from 211 days. Earlier, SBI was paying 5.80% on these deposits. The bank has reduced the interest rate of 10 bps on deposits in 1 year to 10 years. These deposits were earlier received interest at the rate of 6.10%, now 6% interest.

1.  7 days to 45 days 4.50
2. 46 days to 179 days 5.00
3. 180 days to 210 days 5.50
4. 211 days and less than 1 year 5.50
5. 6.00 less than 1 year and 2 years
6. 2 years and 3 years less than 6.00
7. 3 years and 5 years less than 6.00
8. 5 years and 10 years up to 6.00

FD Rates for Senior Citizens from February 10:

SBI gives an interest rate of additional 50 basis points to senior citizens in all tenure. SBI will provide a 5.00% interest for FD to be completed in 7 days to 45 days. Now, the interest rate for 179 days from 46 days will be 5.50%. The bank will give an interest rate of 6% to 210 days for FD to be completed in 180 days and less than 1 year from 211 days. Sbi will provide 6.50% interest for maturity to senior citizens between one year and 10 years.

1. 7 days to 45 days 5.00%
2. 46 days to 179 days 5.50%
3. 180 days to 210 days 6.00%
4. 211 days and 6.00% less than 1 year
5. 6.50% less than 1 year and 2 years
6. 2 years and 6.50% less than 3 years
7. 3 years but 6.50% less than 5 years
8. 6.50% from 5 years to 10 years

Image credit: fundstiger