SBI Cuts Interest Rates On Some Retail Term Deposits By 15 Basis Points

The State Bank of India has reduced interest rates on retail term deposits by 15 basis points on certain tenures, effective Jan. 10.

The reduction in interest rates are for long-term fixed deposits below Rs 2 crore.

The country’s largest lender has slashed interest rates on fixed deposits maturing in one-year to 10 year to 6.10 percent from 6.25 percent, as per the information on bank's website.

For fixed deposits maturing in seven days to 45 days and 46 days to 179 days, the bank is offering an interest rate of 4.50 percent and 5.50 percent, respectively.

The term deposits maturing in 180 days to less than one-year are fetching an interest rate of 5.80 percent.

The bank offers 50 basis points higher interest rate to senior citizens.

With this reduction, fixed deposits maturing in one-year to 10 years will give interest at the rate of 6.60 percent to senior citizens.

Last month, the bank cut its external benchmark based rate by 25 basis points to 7.80 percent per annum from 8.05 percent per annum.

With it, the bank's home loan rate also got reduced to 7.90 percent from 8.15 percent.

SBI had introduced floating rate home loans from July 1, 2019.

The lender had adopted repo rate as the external benchmark for all floating rate loans for micro, small and medium enterprises, housing and retail loans from Oct. 1, 2019 after the Reserve Bank of India mandated banks to link certain category of loans to external benchmark based interest rate.

The bank has reduced its marginal cost of funds based lending rate eight times in 2019-20 financial year so far.

Its one year MCLR currently stands at 7.90 percent.