New Delhi, May 19 – The State Bank of India (SBI), the country’s largest lender, has reduced interest rates on fixed deposits (FDs) by up to 0.20 percent across all maturity periods, effective from May 16. The revised rates apply to retail domestic term deposits under ₹3 crore and are applicable to both general and senior citizen categories.
As per agency report, SBI has updated its website reflecting the changes in interest rates. For FDs with a tenure of two years to less than three years, the maximum interest rate has been revised to 6.7 percent. Deposits maturing between three and less than five years will now earn 6.55 percent interest.
For long-term deposits ranging from five to ten years, the interest rate has been brought down to 6.30 percent, while deposits for one year to less than two years will now earn 6.5 percent interest.
The bank's special 444-day scheme, known as ‘Amrit Kalash’, has also seen a revision, with the interest rate cut from 7.05 percent to 6.85 percent.
Senior citizens and super senior citizens (aged above 80) will continue to receive additional interest benefits on their deposits.
This move follows a similar step taken last month when SBI slashed deposit rates by 0.10 to 0.25 percent after the Reserve Bank of India (RBI) reduced the repo rate. In its monetary policy review held in April, the RBI lowered the repo rate for the second consecutive time by 0.25 percent, bringing it down to 6 percent.
