The State Bank of India (SBI) has decided to cut interest rates on Fixed Deposits (FDs) starting August 1. Rates across short, medium and long term deposits will be slashed. This month HDFC Bank, Axis Bank, Kotak Mahindra and Bank of Baroda too revised their interest rates. Earlier this year, RBI cut its key repo rate by 75 basis points. The central bank may cut repo rate again next month. Interest rate on small savings schemes like PPF was cut earlier. Other banks expected to follow SBI in cutting deposit rates.
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