1. SBI cuts FD rates; here’re the latest FD rates of State Bank of India, HDFC Bank and ICICI Bank

SBI cuts FD rates; here’re the latest FD rates of State Bank of India, HDFC Bank and ICICI Bank

After making its home and auto loans a bit cheaper, the State Bank of India – India's largest bank – has slashed its fixed deposit (FD) rates by 25 basis points across most maturities, effecting from November 1, 2017.

By: | New Delhi | Published: November 4, 2017 11:46 AM
SBI, SBI FD rates, HDFC Bank, ICICI Bank, SBI pensioners,  ICICI Bank , interest rates, sbi home loans, sbi auto loans According to the bank, the interest rate payable to the SBI staff and SBI pensioners will be 1% above the applicable rate. (PTI)

After making its home and auto loans a bit cheaper, the State Bank of India – India’s largest bank – has slashed its fixed deposit (FD) rates by 25 basis points across most maturities, effecting from November 1, 2017. For instance, retail domestic term deposits (below Rs 1 crore) of less than 2 years will now fetch interest rates of up to 6.25% as against 6.5% earlier, while deposits ranging from 2 years to 10 years will fetch 6% interest as against 6.25% earlier. Similarly, term deposits made by senior citizens of less than 2 years will fetch interest up to 6.75%, while deposits between 2 years and 10 years will give 6.50% return.

According to the bank, the interest rate payable to the SBI staff and SBI pensioners will be 1% above the applicable rate. The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.

SBI Fixed Deposits (All Figures In % Per Annum)

Like SBI, some other banks have also revised their FD rates recently. For example, on domestic, NRO and NRE term deposits of below Rs 1 crore, HDFC Bank is offering 6% interest on deposits for 6 months 1 day to 9 months 15 days, 6.75% interest on deposits for 1 year, and 6% interest on deposits of 2 years 1 day to 10 years. Senior citizens, on the other hand, will get 7.25% on deposits for 1 year and 6.50% on deposits ranging from 2 years 1 day to 10 years. They will earn 6.75% on deposits for 1 year 4 days up to 2 years.

HDFC Bank Domestic / NRO / NRE TERM DEPOSITS

ICICI Bank Domestic, NRO & NRE Deposits

You also need to remember that the minimum amount that can be deposited as an FD is usually around Rs 10,000. However, the non-callable deposit facility is applicable only on deposits of over Rs 15 lakh. “FD is an ideal investment option for an investor who is looking at fixed and assured regular income. It’s a very good senior citizen’s product. However, keep in mind that FDs are more of a savings product than an investment product. Net of tax, the real return from fixed deposits tend to be lower than inflation at most times,” says Navin Chandani, CBDO, BankBazaar.com.

  1. Chandrasekaran Venkataraman
    Nov 4, 2017 at 2:08 pm
    SBI reduced the Home Loan and Car Loan rate by 0.05 percent , and now reduced the deposit rate by 0.25 percent . Thus, the SBI will pocket 0.20 , which is 4-times (400 percent ) of the reduction in the said loan rate !
    Reply
    1. Chandrasekaran Venkataraman
      Nov 4, 2017 at 2:07 pm
      SBI reduced the Home Loan and Car Loan rate by 0.05 , and now reduced the deposit rate by 0.25 . Thus, the SBI will pocket 0.20 , which is 4-times (400 ) of the reduction in the said loan rate !
      Reply
      1. S
        S.K.Gupta
        Nov 4, 2017 at 1:51 pm
        The deposit rates as applicable in case of SBI staff and SBI Pensioners (i.e. 1 above the usual rates for all others) should also apply at least in case of such deposits made by the Senior Citizens across the country. Incidentally, one would also like to know the percentage "share" of the SBI's own employees vis-a-vis all others with reference to the total amount deposited in its Fixed Deposits. Why SBI management gives such a special treatment to its own serving and ex-employees and thus evidently discriminates between them and the common man? Is MoF listening please?
        Reply
        1. N
          N Venkata Ramana Rao
          Nov 4, 2017 at 1:32 pm
          Slow poison to senior citizens by reducing the Interest rates on Term deposits by Banks. What compensation is paid to those by either state or. Central Govts to those who are totally dependent on Interest earnings with EPF pension which is meagre amount does not meet for a week meal. It is better to kill senior citizens of private sector employees.
          Reply
          1. Sridhara Hiriyannaiah
            Nov 4, 2017 at 12:59 pm
            Senior citizens are most hit with this. We solely depend on the monthly interest we receive on our investment of hard earned money. While money value is also going down if the interest rate also reduced there is no option than to end our life.
            Reply
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