New Delhi: The Reserve Bank of India slashed the policy repo rate on Friday by a massive 75 basis points to 4.40 per cent keeping in view the current lockdown situation to combat the spread of Covid-19. Soon after this, the country’s largest lender State Bank of India passed on an entire 75 bps repo rate cut to its borrowers. SBI has also slashed the interest rate on fixed deposits (FDs).
Interest rate cut:
The interest rate for FDs, also known as term deposits, was cut by 20-50 basis points (bps) across tenors in the retail segment and 50-100 bps in the bulk segment across all tenors. These interest rates are applicable with effect from today (March 28, 2020) on the FDs. It may be noted that this is the second rate cut in a month.
RBI repo rate cut:
Earlier, the public sector lender had cut interest rates on FDs on 10 March. SBI’s rate cut announcement came hours after RBI reduced the repo rate by 75 bps, the highest cut in 15 years.
“Responding to the RBI’s extraordinary monetary policy measures to support the wider economy, the bank passes on the entire 75 basis points (bps) repo rate cut to its borrowers availing loans linked to external benchmark-linked lending rate (EBR) as well as repo-linked lending rate (RLLR),” SBI said in a statement.
New SBI FD rates:
After the latest revision, SBI FDs between 7 days to 45 days will now fetch 3.5% interest. Term deposits between 46 days to 179 days will fetch 4.5%. FDs of 180 days to less than one year will fetch 5%. Fixed deposits with maturity between 1 year and up to 10 years will now fetch 5.7%.
SBI latest FD interest rates for general public and senior citizens:
Interest Rates On Retail Domestic term deposits (Below Rs 2 crore)
Interest Rates on Domestic Bulk Term Deposits (Rs 2 Crores and above)
It is worth mentioning that SBI offers senior citizens’ an additional 50 basis point interest rate across all tenors. After today’s rate revision, senior citizens will get 4% to 6% on FDs maturing in 7 days to 10 years.