The State Bank of India (SBI) has slashed the interest rates on Fixed Deposits (FD) for up to 3 years tenor and the new rates will come into effect from May 12. The proposed interest rates will be applicable to fresh deposits and renewals of maturing deposits. However, the interest rates with tenor 3 to 10 years remain unchanged at 5.7%.
The SBI through a statement issued on Saturday said, “SBI has slashed its interest rates on retail term deposits by 20 bps for 'up to 3 years' tenor in view of adequate liquidity in the system as well as with the bank.”
As per the statement, deposits for 7 to 45 days will yield 3.3% while those for 46 to 179 days will earn 4.3% interest, and deposits of 180 days to less than one year will get the investor 4.8% interest. Deposits with a maturity between 1 year and up to 3 years will fetch the investor 5.5% interest.
Similarly, for the senior citizens and pensioners will be 1% above the applicable rate. They will get an additional bps interest rate across all tenors and they will get 3.8% to 6.5% on FDs maturing in 7 to 10 years.