Mumbai: The interest you receive on your yearly fixed deposits for less than Rs 1 crore will drop as State Bank of India has decreased the interest rate on such deposits to an all-time low of 6.75 per cent.
With effect from July 1, India’s largest bank trimmed the interest rate by 15 basis points from 6.90 per cent to 6.75 per cent. This rate is currently the lowest in the Indian banking sector for one-year deposits up to Rs 1 crore.
This implies that the interest received on cash deposits of less than Rs 1 crore parked with SBI on one-year basis will automatically decrease. The total amount received at the end of the year will also be lesser than what one would have got previously.
These are the rates offered by some of these other public sector lenders on one-year deposits:
- Punjab National Bank: 6.90 per cent
- Bank of Baroda: 6.90 per cent
- State Bank of Travancore: 6.90 per cent
- Union Bank of India: 7 per cent
These are the rates offered by some of the leading private sector banks on one-year deposits:
- Yes Bank: 7.5 per cent
- IndusInd Bank: 7.5 per cent
- Axis Bank: 7 per cent
- HDFC: 6.95 per cent
- ICICI: 6.90 per cent
The trimming in interest rate on deposits comes on the heels of SBI cutting lending rates on certain sections of home loans above Rs 75 lakh to 8.55 per cent for women and 8.6 per cent for others. There has also been a rate-cut on small savings schemes.
