SBI fixed deposit holder? Big setback! Interest rates cut for the second time in a month

SBI fixed deposit interest rate: The State Bank of India (SBI) customers are going to get up to 0.5 per cent lesser interest in their fixed deposits from now onwards. The largest Indian commercial bank has cut down the interest rate on the SBI Fixed Deposit (FD) on various categories from 0.1 per cent to 0.5 per cent. However, the bank has kept the saving bank account interest rates unchanged.

According to the SBI press statement, the PSU bank has cut down interest rates on FDs with various maturity periods from 0.1 per cent to 0.5 per cent while in the interest rates on bank FDs as a whole having various maturity period have been slashed from 0.3 per cent to 0.7 per cent. In the new arrangement, an investor would get 4.5 per cent returns on his or her SBI FD, if itis invested for a tenure of 7 to 45 days. Similarly, on SBI FDs from 46 to 179 days and 180 to one year, the bank has slashed interest rate by 0.25 per cent. Now an investor would get 5.5 per cent returns on his or her SBI FD for the tenure of 46 days to 179 days while he or she would get 6 per cent returns if the tenure is from 180 to one year.

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On five years to 10 years SBI FD, interest rates have been slashed by 0.25 per cent. Now, an investor would get 6.25 per cent returns on his or her SBI FD that spans from 5 years to 10 years. However, the SBI press statement reiterated that the bank has decided not to reduce the savings bank interest rate further and hold the same at the existing level of 3 per cent for customers with balances above Rs 1 lakh. Customers with SB balance upto Rs 1 lakh will continue to get the rate of interest at 3.5 per cent, as hitherto. The new arrangement will become effective from 26th August 2019.