9,580.3090.2
Stock Analysis, IPO, Mutual Funds, Bonds & More

State Bank of India reduces FD rates. Here are the latest ones

According to the newly effective interest rate, FD having tenor of 7 to 45 days will earn 4 per cent instead of 4.50 per cent earlier.

ET Online|
Last Updated: Mar 12, 2020, 10.48 AM IST
0Comments
Reuters
SBI-reuters
FD rates applicable for tenure of 46 days to 179 days, 180 days to 210 days and 211 days to less than one year have been kept unchanged.
ET Calculator Banner
For the second time in less than a month, the State Bank of India (SBI) has cut interest rates on fixed deposits (FD) for certain tenors. Interest rates on short-term FDs with tenure of up to 45 days has been reduced sharply by 50 basis points or 0.50 per cent. (100 basis point = 1 per cent). The new rates are effective from March 10, 2020.

According to the newly effective interest rate, FD having tenor of 7 to 45 days will earn 4 per cent instead of 4.5 per cent earlier.

FD rates for tenure of one-year and above have been reduced by 10 bps. The one year FD will now earn 5.9 per cent instead of 6 per cent earlier. Following the reduction in fixed deposit rates, the highest return offered by SBI now is 5.9% on deposits above a year. The last time FD rates were below 6% was in August 2004.

This is the second time bank has reduced rates in one month. In February the PSU bank reduced FD rates by 10-50 bps. The back-to-back rate cuts have come despite RBI maintaining status quo in its monetary policy announcement in the month of February.

SBI FD rates applicable from March 10, 2020
Tenors Existing Rates for Public w.e.f.10.02.2020 Revised Rates For Public w.e.f.10.03.2020
7 days to 45 days 4.5 4
46 days to 179 days 5 5
180 days to 210 days 5.5 5.5
211 days to less than 1 year 5.5 5.5
1 year to less than 2 year 6 5.9
2 years to less than 3 years 6 5.9
3 years to less than 5 years 6 5.9
5 years and up to 10 years 6 5.9

SBI FD rates applicable from March 10, 2020 for senior citizens
Tenors Existing Rates for Senior Citizens w.e.f. 10.02.2020 Revised Rates for Senior Citizens w.e.f. 10.03.2020
7 days to 45 days 5 4.5
46 days to 179 days 5.5 5.5
180 days to 210 days 6 6
211 days to less than 1 year 6 6
1 year to less than 2 year 6.5 6.4
2 years to less than 3 years 6.5 6.4
3 years to less than 5 years 6.5 6.4
5 years and up to 10 years 6.5 6.4

In should be noted that FD rates applicable for tenure of 46 days to 179 days, 180 days to 210 days and 211 days to less than one year have been kept unchanged. According to SBI press release, bulk fixed deposit interest rates reduced by 15 bps for deposits in “180 days & above” tenors.

The cut in deposit rates comes on the back of a liquidity surge in the money markets. The crash in crude oil prices and an economic slowdown triggered by the coronavirus has raised hopes of RBI easing monetary policy. As a result, the yield on the benchmark 10-year debt slid as much as 13 basis points to 6.05% on Monday, a level last seen in 2009.

The PSU bank has als0 reduced the MCLR rates by up to 15 bps.
(With inputs from Times of India)
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service