State Bank of India or SBI, India’s biggest Bank, has cut interest rates on fixed deposits or FDs for second time in a month. The revised rates came into effect from 10th March. SBI had earlier cut interest rates on FDs on 10th February.
According to the latest revision, SBI FDs between 7 days to 45 days will now fetch 4%, from 4.5% earlier. Similarly, FDs between one year to less than 5 years, will fetch 5.9%, from 6% earlier. SBI fixed deposits between 5 years and up to 10 years will now fetch 5.9% from 6% earlier.
SBI said senior citizens will continue to get 50 basis points higher interest rates than offered to general public. These rates are applicable on retail fixed deposits of less than Rs 2 crore.
SBI said the new FD rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
With SBI lowering interest rates, other banks are expected to revise their interest rates. Another public sector bank Bank of Baroda had also revised its interest rate on 10th February.
SBI today also cut its marginal cost of fund-based lending rate (MCLR) by up to 15 basis points across various tenors, effective March 10. The bank has reduced its one-year MCLR by 10 basis points to 7.75% from 7.85% earlier.