The largets bank of India State Bank of India (SBI) has revised its interest rates on fixed deposits which are also known as term deposits. The bank revised FD rates on account of adequate liquidity in the system. The new interest rates on the fixed deposits will be effective from 10th November.
Many banks have reduced the interest rates already. SBI too following them have taken this step and reduced the interest rate on retail term deposit by 15 basis points for one year to less than two years’ tenor. or FDs maturing in 7 days to 45 days and 46 days to 179 days, SBI gives 4.50% and 5.50% respectively. For FDs maturing in 180 days to 210 days and 211 days to less than 1 year, SBI will give an interest rate of 5.80%.
Before this, SBI revised it on 10th October already. The interest rates of the deposits which are going to be matured in 1 or 2 years have been reduced. After the latest reduction of rates, you will get an interest rate of 6.25% on FDs. This is for the FDs maturing in 2 to 10 years.
Senior cetizens will get extra 50 basis points over the FD interests. For them the interest will range from 5% to 6.75% on deposits maturing in 7 days to 10 years.
Earlier, Axis bank, Punjab National Bank, HDFC bank and Kotak Mahindra Bank have also revised their interest rates on FD.