SBI cuts fixed deposit rates

New Delhi: State Bank of India has changed the interest rate of Fixed Deposit (FD). The bank has reduced the interest rate on FDs of less than Rs 2 crore ‘from 1 year to less than 2 years’. This deduction is 0.20 percent. There is no change in the interest rates on all other maturity periods of FD.

The new interest rate for the respective maturity period became effective from 10 September 2020. The bank had earlier changed the interest rates on FDs in May. After the reduction in the interest rate, now the annual interest on FDs of less than Rs 2 crore in SBI with ‘1 year to less than 2 years’ interest has come down to 4.90 percent, which was 5.10 percent earlier. For senior citizens, the interest rate on FD has increased to 5.40 percent in this maturity period, which was earlier 5.60 percent annually.

For senior citizens, SBI has added a new deposit scheme ‘SBI Wecare’ in the retail term deposit segment. In SBI VCare, senior citizens get an additional benefit of 0.30% in addition to the benefit of 0.50% from the general public on the interest rate of FD. But senior citizens can avail this benefit only on FDs of ‘5 years or more’ duration. In simple words, in the SBI VCare scheme, senior citizens will get 0.80 percent more interest than the general public in the interest rate on the FD of the respective maturity period. SBI Wecare Deposit Scheme can be availed till 31 December 2020.

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