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SBI Cuts FD Rates by 40 Basis Points with Special Senior Citizen Scheme; Revised Interest Rates Here

Tooba Maher
Tooba Maher
SBI

SBI Cuts Interest Rates on Fixed Deposits (FD): The country's biggest lender, State Bank of India (SBI), has cut interest rates on its term deposits for the 2nd time in this month. SBI has reduced interest rates on fixed deposits (FD) by 40 basis points (bps) across all tenor. The sharp slash in SBI's term deposit rates comes after the Reserve Bank of India (RBI) has last week cut repo rate by 40 basis points to 4 percent from 4.40 percent earlier.

SBI Cuts Interest Rates on Bulk Deposits

On bulk deposits (Rs 2 crore or more), SBI has cut interest rates by 50 basis points. The revised interest rates are applicable from today i.e. May 27, 2020.

According to this latest SBI revision, it offers maximum interest rate of 5.40% on FDs of 5 years to 10 year tenor as compared to 5.70% earlier. It is to be noted, on May 12 SBI has slashed interest rates on term deposits for ‘upto 3 years’ tenor by 20 bps.

SBI Wecare FD Scheme

SBI Wecare FD scheme, which was declared for senior citizens to give them higher interest in this falling interest rate scenario, now offers 6.20 percent interest to senior citizens on FDs of 5 years and higher tenor. However, earlier this scheme was providing 6.50% interest.

Revised Interest Rates offered by SBI on Term Deposits

Tenor                       

Interest Rate

 

7 days to 45 days

 

2.90%

46 days to 179 days

3.90%

 

180 days to 210 days

4.40%

 

211 days to less than 1 year

4.40%

 

1 year to less than 2 year

5.10%

 

2 years to less than 3 years

5.10%

 

3 years to less than 5 years

5.30%

 

5 years and up to 10 years

5.40%

 

Source: SBI

It is to be noted that Senior citizens will get 50 basis points higher rate on the rates mentioned above except for the five to ten years tenor in which they will get 80 basis points higher interest as compared to general public.

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