SBI Customers Alert!!! State Bank of India Revises Interest Rates on Fixed Deposits (FDs); New Rates to be Effective from 1 August

The State Bank of India (SBI) has changed its fixed deposit or FD rates across all tenors. It has sharply reduced the interest rate on FDs ranging from 45 days to 10 years. On fixed deposits maturing in 7 days to 45 days, the bank has cut the rate of interest from 5.75 percent to 5.00 percent. And on deposits maturing in 46 days to 179 days, SBI has slashed the interest rate to 5.75 percent. Earlier it was providing an interest rate of 6.25 percent. For FDs maturing in 180 days to 210 days, the bank has cut the interest rate by 10 basis points. Now it will offer an interest rate of 6.25 percent.

For short-term deposits ranging from 211 days to less than 1 year, the State Bank of India has cut the interest rate from 6.40 percent to 6.25 percent. Now these revised rates will be applicable on term fixed deposits across all the tenors with effect from 1st August 2019, as per SBI’s official website.

On mid-term deposits ranging from 1 year to less than 2 years, the bank has slashed the interest rates by 20 basis points. These FDs will bring you an interest rate of 6.80 percent.

Check the Latest SBI FD Rates

The State Bank has also cut the interest rates on its long-term deposits. For fixed deposits maturing in 2 years to less than 3 years, the bank has reduced the interest rate by 5 basis points and now it will fetch you an interest rate of 6.70 percent.

For fixed deposits maturing in 3 years to less than 5 years, SBI will offer an interest rate of 6.60 percent - previously these FDs were fetching an interest rate of 6.70 percent. For deposits maturing in 5 years to 10 years, the bank has cut the interest rate from 6.60 percent to 6.50 percent.

The State Bank of India had earlier tweaked interest rate on some select maturities effective from 9^th May 2019.

Many banks have been cutting the interest rates on fixed deposits because of a fall in interest rate in the financial system & surplus liquidity. Axis Bank, BoB, HDFC Bank, Kotak Mahindra, PNB are few banks who had revised their fixed deposit rates this month.

If compared to SBI’s interest rates, saving schemes like NSC and PPF are presently offering a return of 7.9 percent, whereas Kisan Vikas Patra is giving 7.6 percent with a lock-in period of 113 months. This may trigger problems for many banks as savings may flow into these instruments. Even before the State bank of India announced the reduction, the Bank of Baroda had slashed its deposits rates by 25 BPS & its 1 year and 5 to 10 year deposit rates now stand at 6.45%.