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News You Can Use: SBI Slashes Fixed Deposit Interest Rates By 40 BPS

Team BankBazaar

State Bank of India (SBI) has slashed fixed deposit interest rates by 40 basis points (bps) across all tenures effective from May 27. This is the second time in a month that SBI has cut rates. The move comes after the Reserve Bank of India slashed the repo rate by 40 bps to 4% from the 4.40% earlier. Senior citizens will continue to get 0.5% more than the regular interest rates on fixed deposits.

Take a look at the interest rates offered by SBI for different tenures after the latest(May 27) revision:

Tenure New Interest Rate (In %) New Interest Rate For Senior Citizens (In %)
7 days to 45 days 2.9 3.4
46 days to 179 days 3.9 4.4
180 days to 210 days 4.4 4.9
211 days to less than 1 year 4.4 4.9
1 year to less than 2 years 5.1 5.6
2 years to less than 3 years 5.1 5.6
3 years to less than 5 years 5.3 5.8
5 years and up to 10 years 5.4 6.2

SBI has also announced reduction in interest rates for bulk deposits of Rs. 2 crore or more by up to 50 bps, which also comes in effect from May 27.

SBI had recently announced a special fixed deposit scheme for senior citizens. The scheme, called SBI Wecare, pays an additional premium of 30 bps (in addition to the existing 50 bps for senior citizens. This scheme, which is open for a limited period up to September 30, 2020 is applicable on deposits with maturity durations of five years or more. is India’s leading online marketplace for loans, credit cards, and more.