Attention SBI customers! Your bank calls for sharp rate cuts on deposits maturing across all tenors

News Bharati    29-Jul-2019
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Mumbai, July 29: Being country's one of the largest lender, the State Bank of India, waking ahead in the falling growth numbers of slated economy, has revised the fixed deposit rates across all tenors applicable with effect from August 1, this year.
 
“State Bank of India realigns its interest rate on Retail Term Deposits less than Rs 2 crore and Bulk Term Deposits Rs. 2 crore & above with effect from 1 August”, the official statement read.
 
 
“For time deposits with longer tenors, there is a reduction up to 20 bps in the Retail segment and 35 bps in the Bulk segment. Interest rates have been slashed by 50-75 bps for time deposits with shorter tenors, that is up to 179 days”, it added.
 
On FDs maturing in seven days to 45 days, SBI has reduced the rate of interest from 5.75 to 5 per cent, whereas on deposits maturing in 46 days to 179 days, the interest rates have been reduced to 5.75 per cent.
 
Latest SBI FD rates  
 
 
This is however days before the RBI is set to decide on its monetary policy, where it is widely expected to lower interest rates in next month's policy meeting. The RBI so far this year cut the repo rate by a combined 75 basis points, leading to a sharp fall in bond yields.
 
Many banks have been reducing the interest rates on fixed deposits due to a fall in interest rate in the financial system and surplus liquidity. HDFC Bank, Axis Bank, PNB, BoB, and Kotak Mahindra, among others, had revised their fixed deposit rates this month.