India’s largest lender State Bank of India (SBI) has cut interest rates on Fixed Deposits (FDs) for the second time in a month. The revised rates came into effect from March 10 onwards. Interest rates on short-term FDs have been reduced sharply by 50 basis points or 0.50 per cent.
As per the newly effective interest rates, FDs between 7-45 days will get receive 4 per cent instead of 4.5 per cent earlier. Similarly, interest on FD rates for one year to less than five years has been reduced by 10 bps and the now these FDs will get 5.9 per cent instead 6 per cent earlier.
This is the second time SBI has reduced its interest rates in one month. The deduction in interest rates come despite Reserve Bank of India maintaining the status quo on its monetary policy release for the month of February.
SBI FD rates for General Public—Applicable from March 10, 2020
| Tenors | Existing Rates w.e.f.10.02.2020 | Revised Rates w.e.f.10.03.2020 |
| 7 days to 45 days | 4.5 | 4 |
| 46 days to 179 days | 5 | 5 |
| 180 days to 210 days | 5.5 | 5.5 |
| 211 days to less than 1 year | 5.5 | 5.5 |
| 1 year to less than 2 year | 6 | 5.9 |
| 2 years to less than 3 years | 6 | 5.9 |
| 3 years to less than 5 years | 6 | 5.9 |
| 5 years and up to 10 years | 6 | 5.9 |
SBI FD rates for Senior Citizens—Applicable from March 10, 2020
| Tenors | Existing Rates for Senior Citizens w.e.f. 10.02.2020 (in%) | Revised Rates for Senior Citizens w.e.f. 10.03.2020
(in %) |
| 7 days to 45 days | 5 | 4.5 |
| 46 days to 179 days | 5.5 | 5.5 |
| 180 days to 210 days | 6 | 6 |
| 211 days to less than 1 year | 6 | 6 |
| 1 year to less than 2 year | 6.5 | 6.4 |
| 2 years to less than 3 years | 6.5 | 6.4 |
| 3 years to less than 5 years | 6.5 | 6.4 |
| 5 years and up to 10 years | 6.5 | 6.4 |
The bank has also cut its marginal cost of fund-based lending rate (MCLR) by 15 bps across various tenors effective March 10.