New Delhi: The country’s largest bank, State Bank of India (SBI), has again cut interest rates on fixed deposits after two weeks. The bank has reduced interest rates of FD for all periods by 0.40%. The new FD rates are effective from Thursday, 27 May. To boost the battered economy a few days ago, RBI cut the repo and reverse repo rate by 40 bps. Since then, there were fears that banks would cut interest on FDs.
Earlier, on May 12, the bank had cut interest by 0.20% on term deposits for a period of 3 years. SBI has also reduced the rate of interest on bulk deposits (Rs 2 crore or more) by 0.50 per cent. Under this category, the bank gives a maximum interest of 3%. The new rates of interest under this category are also effective from May 27.
