Making a model move to lower the returns for savers, SBI slashes interest rates on fixed deposits by 0.5% points

Mumbai, August 23: Moving to lower the returns for savers, the country's largest lender State Bank of India on Friday slashed interest rates on fixed deposits across various tenure by up to 0.5 percentage point.

 

"In view of the falling interest rate scenario and surplus liquidity, SBI realigns its interest rate on Term Deposits with effect from August 26, 2019", SBI said in a statement.

 

 

"The bank has slashed retail term deposit rates by 10-50 basis points across tenors as well as bulk term deposit rates by 30-70 basis points across tenors. The bank has slashed the interest rate for the fixed deposits with maturity of 7-45 days to 4.5 per cent from existing 5 per cent", it added.

 

The bank also said that it has retained interest rate on savings bank deposit at 3 per cent for customers with balances above Rs 1 lakh with a view to protecting the interest of savings bank depositors. With this the customers with SB balance up to Rs 1 lakh will continue to get the rate of interest at 3.50 per cent despite cut in the repo rate by the RBI earlier this month.

 

The RBI in its third bi-monthly policy had reduced repo rate by 35 basis point, from 5.75 per cent to 5.40 per cent with effect from August 7, 2019.