1. SBI reduces term deposit rates by up to 50 bps: 5 ways how it will impact you

SBI reduces term deposit rates by up to 50 bps: 5 ways how it will impact you

Country's largest lender State Bank of India has cut its term deposit rates by up to 50 basis points for various maturities. The rates have been revised for medium and long term deposits and for amount below R

By: | Published: May 1, 2017 1:11 PM
The lender will be offering the new rates for fresh deposits and renewals and are applicable from April 29, 2017.

Country’s largest lender State Bank of India has cut its term deposit rates by up to 50 basis points for various maturities. The rates have been revised for medium and long term deposits and for amount below Rs one crore.

According to the new structure, for two to less than three years deposits, SBI will offer a rate of 6.25 per cent as compared to 6.75 per cent earlier, the bank said. For the similar maturity, the deposit rates for senior citizen have been cut to 6.75 per cent from 7.25 per cent.

Here are five things you should know:

1. For deposits maturing between three years and 10 years, the rates have been lowered by 25 basis points to 6.50 per cent.

2. The lender will be offering the new rates for fresh deposits and renewals and are applicable from April 29, 2017.

You may also watch:

3. The short-term deposits, that is, for deposits maturing between seven days to less than two years, the rates have been left unchanged.

4. The bank is offering highest rates of 6.90 percent for one year to 455 days term deposits.

5. SBI has also not changed its marginal cost of funds based lending rates. Its one-year MCLR is at eight per cent. The six-month MCLR rate is at 7.95 percent while the three-year rate stands at 8.15 percent.

Recently, SBI Brought cheer to customers who have raised their loans prior to April 1, 2016. The largest public lender State Bank of India (SBI) had cut its base rate by 15 basis points (bps) to 9.10 per cent on April 1, 2017. Earlier, the base rate stood at 9.25 percent.

  1. A
    Apte
    May 1, 2017 at 4:22 pm
    1. This news about fall in rates of interest on SBI’s Fixed deposits (FDs) is not very good news for a section of the society. 2. Our Prime Minister had announced an investment scheme for senior citizens in November 2016 and announcement was part of his speech after demonetisation decision. Details of the said scheme, which as per PM’s speech would be managed by LIC of India have not been made public. 3. Senior citizens like me who are not pensioners wish to know whether scheme announced by PM is different from already existing Senior Citizens’ Savings Scheme. Union Finance Ministry must take quick steps to notify the said scheme so that senior citizens who are not pensioners will feel a little relieved as interest rates on bank FDs have fallen sharply and may fall further. 3. My fear is that these senior citizens who are dependent on interest on bank deposits as the only or main source of income will face a financial crisis with rapid fall in rate of interest on bank FDs.
    Reply

    Go to Top