SBI cuts term deposit rates by 50 basis points

Mumbai: India’s largest public sector lender SBI has slashed interest rates on term deposits by upto 50 basis points for various maturities.

While the interest rates for short term deposits for a tenure upto two years have been kept unchanged, the rates on medium to long term deposits below Rs 1 crore have been revised downwards with effect from April 29, 2017. However, the bank added that the new rates would be applicable only to fresh deposits and renewals of maturing deposits.

According to the revised rates, the bank will offer an interest rate of 6.25 per cent on retail domestic term deposit with tenure of 2-3 years from 6.75 per cent earlier while term deposit with a tenure of more than three years but less than five years will receive interest at 6.25 per cent per annum as compared to 6.50 per cent earlier.

Retail term deposit with tenure of 5-10 years has also seen a 25 basis point reduction in interest rates. However, interest rates for senior citizen and SBI pensioners of age 60 years and above will be 0.50 per cent above the rate payable for all tenors.

The bank is offering highest rates of 6.90 per cent for one year to 455 days term deposits. However, the public sector lender did not make any changes to the marginal cost of funds based lending rates, which now stands at about 8 per cent.