SBI hits consumers: FD interest rates fall for the second time in a single month

Ahmedabad. March 11, 2020, Wednesday

There are reports that SBI has offended those who have fixed deposit (FD). This largest bank in the country has cut interest rates for fixed deposits for the second time in a month. The new rates will be effective from March 10.

The SBI had earlier lowered interest rates for the FD on February 10. While other banks may reduce interest rates for FDs by State Bank of India. According to the latest SBI decision, the bank will get four per cent interest on FDs placed for seven to 45 days, up from 4.5 per cent previously.

Similarly, for a period of less than one year to five years, 5.9 per cent interest will be available, as against 6 per cent earlier. FDs for periods ranging from five years to 10 years will now pay 5.9 interest, which was previously 6 percent.

The SBI said that Senior Citizens Deposit will get 50 basis points ie half per cent interest more than ordinary depositors. All of this will apply to retail fixed deposits of up to two crores each.

The SBI has stated that this interest-rate will be applied to fresh deposits as well as when the cultivated deposits are renewed. While the SBI lowered interest rates on FDs last month, Bank of Baroda also lowered its interest rates for FDs. SBI has announced a reduction of MCLR rate by 15 basis points for all periods.