New Delhi: State Bank of India, the country’s largest public sector bank, has cut interest rate on fixed deposits. The bank has cut the interest rate of FD by 0.20% -0.50% in retail segment and by 0.50% -1% in bulk segment. The new rates of interest on FD have come into effect from March 28, 2020. This month the interest rates have been cut for the second time. Earlier, the bank cut rates on 10 March.
The SBI announcement comes after the Reserve Bank of India (RBI) cut the repo rate by 0.75%. For the first time in 15 years, RBI has cut such a huge repo rate. After the monetary policy review meeting, RBI Governor Shaktikanta Das announced a cut in the repo rate, after which Finance Minister Nirmala Sitharaman asked all banks to immediately take advantage of this. SBI said in a statement, “Keeping in mind the RBI’s extraordinary monetary policy measures to support the economy, the bank has cut the lending rates by 0.75% and this is based on the external benchmark linked lending rate (EBR) and repo- Available to borrowers at linked lending rate (RLLR).
After the latest revision, the interest rate on SBI’s FD from 7 days to 45 days has come down to 3.5%. Interest will be available for 4.5% on term deposits ranging from 46 days to 179 days. Interest rate of 5% will be given for 180 days FD. For deposits from one year to 10 years, you will get an interest of 5.7%. SBI gives an additional interest of 0.50% to senior citizens on FDs of all maturities. After the new amendment, they will get 4% -6% interest on FDs ranging from 7 days to 10 years.
