Term deposit of 1 year to 455 days has been reduced by 0.15 per cent to 6.90 per cent from 7.05 per cent effective tomorrow, SBI said in a statement.
Besides, the one of 456 days to less than 2 years also gets cheaper to 6.95 per cent from 7.10 per cent.
Term deposit between 2-3 years will now attract interest rate of 6.85 per cent from 7 per cent.
The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
However, NRO deposits of staff are not eligible for additional 1 per cent interest otherwise applicable to staff domestic retail deposits. These rates of interest will also be made applicable to domestic term deposits from cooperative banks, it said.
Meanwhile, SBI collected Rs 1,14,139 crore in deposits in last seven days after the government announced to scrap Rs 500 and Rs 1,000 notes.
The government announced its decision to abolish Rs 500 and Rs 1,000 notes on November 8. Banks were opened for transactions from November 10 but was closed on November 14 on account of Gurunanak Jayanti in major parts of the country.