India's largest lender State Bank of India (SBI) has slashed interest rates for fixed deposits (FDs) up to three years' tenor by 20 basis points (bps). The new rates will come into effect from May 12.
The lender has also reduced its Marginal Cost of funding-based Lending Rate (MCLR) across all tenors by 15 bps.
Here are more details.
Check out the revised FD rates here
For FDs maturing in 7 days to 45 days, the interest rate is now 3.3%.
For 46 days to 179 days, the interest rate is 4.3%. For 180 days to one year, the interest rate is 4.8%.
For one-three years, the interest rate is 5.5%.
For FDs maturing over a period of three years to 10 years, the interest rate is 5.7%.
For senior citizens, the revised rates are as follows
SBI depositors who are senior citizens, the interest rates for FDs are 0.5% higher.
For 7-45 days, the interest rate is 3.8%; for 46-179 days, it's 4.8%; for 180 days to one year, it's 5.3%; for one-three years, it's 6%; for three-five years, it's 6.2%; and for FDs maturing over a period of five years to 10 years, the interest rate is 6.5%.
SBI reduces MCLR from 7.40% to 7.25%
The SBI has also reduced MCLR by 15 bps from 7.40% to 7.25%. The new lending rates will be effective from May 10. This is the twelfth consecutive reduction in the bank's MCLR.
SBI introduces 'Wecare Deposit' for senior citizens
The bank has also introduced an FD scheme called 'SBI Wecare Deposit' for senior citizens. The deposits offer an additional 30 bps premium on term deposits with at least 5 years' tenor.
This means that senior citizens would now be able to get 80 bps additional interest on these deposits. However, the additional interest will not be payable in the event of premature withdrawal.