SBI cuts fixed deposit rates by 0.5-1%

http://www.thehindubusinessline.com/industry-and-economy/banking/article3861781.ece

The country’s largest bank SBI today announced a reduction in interest rate on fixed deposits by 0.5 per cent for most of the maturity periods, a move likely to be followed by other lenders.

However, for deposits between 241 days and one year, the downward revision is 1 per cent. The new rate would be 6.5 per cent as against 7.5 per cent.

Of the total of nine maturity periods for fixed deposits, a 0.5 per cent downward rate revision has been announced for 6 categories.

The new rates would be effective from September 7, SBI said in a statement.

With the revision, the interest rate on 7-90 days fixed deposit would come down to 6.50 per cent, from 7 per cent.

Similarly, term deposits of 91-179 days would be down by 0.5 per cent, at 6.50 per cent and 180 days fixed deposits would also attract 6.50 per cent interest rate.

Fixed deposits with maturity of 181-240 days would now provide interest rate of 6.50 per cent, down from 7.25 per cent.

For one year to less than two-year maturity period fixed deposits, the new rate will be to 8.5 per cent as against 9 per cent, down by 0.5 per cent.

At the same time, the interest rate for fixed deposits with maturity period between two-three years and three-five years has been slashed by 0.5 per cent to 8.5 per cent.

However, the bank has left interest rates unchanged at 8.5 per cent for term deposit of 5-10 years.