If you are a customer of State Bank of India (SBI), the country’s largest government bank, or are thinking of getting FD (FD) in the bank, then this is important news for you. SBI has cut interest rates in retail and bulk fixed deposits significantly. The bank has cut interest rates in retail FDs by 15 basis points and on bulk deposits by 75 basis points. Along with this, the bank has also cut MCLR for the 7th consecutive time in the financial year 2019-20. See Revised Rate of Bank FD for different tenures… ..
The bank has cut interest rates by 15 basis points on tenures ranging from 1 year to less than 2 years in deposits under Rs 2 crore. Ordinary people will get interest on FD of less than 1 year to 2 years but now at 6.25 percent per annum, which was 6.40 percent earlier. At the same time, for this tenure, senior citizens will now get 6.75 percent interest, which was 6.90 percent earlier.
SBI has reduced interest rates on bulk FDs in several tenures. The maximum deduction has been made on FDs from 1 year to less than 2 years and from 2 years to less than 3 years. For both these tenires, common people will now get 5.25 percent interest on FDs ranging from 1 year to less than 2 years, which was 6 percent earlier. At the same time, senior citizens will get 5.75 percent interest on it, which was 6.50 percent earlier. Apart from this, the rates for different tenures have been cut up to 30 basis points.
Adequate liquidity in the system
SBI says that there is sufficient liquidity in the system, due to which this change in interest rates on term deposits has been made, which will be applicable from 10 November 2019. With this, the bank has reduced MCLR for the 7th consecutive time. From November 10, the 1-year MCLR has now been reduced to 8 percent, which was 8.05 percent earlier.