State Bank of India slashes FD rate by 40 bps, second cut in May

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State Bank of India has slashed interest rates on retail term deposits by up to 40 basis points (bps) across all tenors, from May 27. The new rates are applicable from May 27. After this steep rate cut, SBI’s 1 year to less than 2 years FDs will fetch 5.1 percent, 3 years to less than 5 years will earn 5.3 percent, and 5 years and up to 10 years will earn investors 5.4 percent.

This is the second instance of a deposit rate cut by the bank this month, as it deals with the challenge of managing a huge pool of surplus funds, in the absence of robust credit demand. It had revised deposit rates by 20 bps effective May 12.

SBI Wecare FD scheme, which was announced for senior citizens to give then higher interest in this falling interest rate scenario, now offers 6.20% interest to senior citizens on FDs of five years and higher tenor. Earlier this scheme was providing 6.50% interest.

According to the SBI website,

SBI latest FD interest rates for general public effective 27 May

7 days to 45 days – 2.9%

46 days to 179 days – 3.9%

180 days to 210 days – 4.4%

211 days to 1 year – 4.4%

1 year to 2 years – 5.1%

2 years to but 3 years – 5.1%

3 years to but 5 years – 5.3%

5 years and till 10 years – 5.4%

SBI offers senior citizens’ a further 50 bps rate of interest across all tenors. After the newest revision, senior citizens will get 3.4% to 6.2% on FDs maturing in 7 days to 10 years.

7 days to 45 days – 3.4%

46 days to 179 days – 4.4%

180 days to 210 days – 4.9%

211 days to 1 year – 4.9%

1 year to 2 years – 5.6%

2 years to less than 3 years -5.6%

3 years to but 5 years – 5.8%

5 years and up to 10 years – 6.2%

The lender said it’s decided to increase the moratorium by three months in loan accounts of all eligible customers, without expecting for a request.

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