SBI cut its deposit rates by 0.25% to 1.00% for various retail term deposit schemes. However, there was no accompanying cut in lending rates, widely expected after the Reserve Bank of India (RBI) cut repo rates last week by 0.50%.
The new rates would be effective from April 24.
SBI's current rates of interest for various term deposit schemes range from 7% at the lowest end to 9.25% at the highest end, for amounts up to Rs. 1 crore.
Financial planners are advising investors to lock-in their savings.
"This is the beginning of the rate cut cycle and there may be more cuts ahead," said Vir Sardesai of Sardesai Finance.
"So it's a good idea for the investors to go for fixed deposits."