The State Bank of India (SBI) has cut the interest rate on its fixed deposits with a duration of one year and above. From January 10, 2020, the SBI has brought down the rate of interest by 0.15 per cent or 15 basis points on deposits between 1 and 10 years. The current rate of interest for 1-year SBI FD is 6.15 per cent per annum, down from 6.25 per cent per annum. The same rate of interest is applicable for deposits of these tenors – ‘1 year to less than 2 years’, ‘2 years to less than 3 years’, ‘3 years to less than 5 years’ and ‘5 years and up to 10 years.’ For senior citizens, the additional interest rate of 0.5 per cent will continue as before.
The SBI FD rates on deposits with lesser duration, however, continues to be the same as earlier. After the recent cuts, the FD rates of SBI over the long term has come down, while the short term rates will remain the same.
SBI FD interest rates on domestic term deposits
(Effective January 2020)
The new rates of interest will apply to fresh deposits and renewals of maturing deposits. The interest rates on "SBI Tax Savings Scheme 2006(SBITSS)" Retail Deposits and NRO deposits shall be aligned as per the new rates for domestic retail term deposits.
The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.50%).
Earlier, there was a revision made by SBI in the savings bank account rate of interest. The interest rate on savings bank deposits effective September 1, 2019, with balances up to Rs. 1 lakh was 3.5 per cent. However, from November 1, 2019, the interest rate on savings bank deposits with balances up to Rs. 1 lakh is 3.25 per cent. The interest rate on savings bank deposits with balances above Rs. 1 lakh continues to be 3 per cent per annum (2.75 per cent below RBI's Repo Rate, with a minimum of 3.00 per cent ) for the entire balance.