SBI slashed Fixed Deposits rates. Find out the details

SBI the country's largest bank has dropped its fixed bank deposit or FD interest rates with effect from today. Also from today, SBI will remove charges on money transfer through IMPS or Immediate Payment Service (IMPS) to boost digital transactions. IMPS, an interbank electronic instant money transfer service, is available 24x7, throughout the year including on bank holidays and Sundays. The beneficiary's account is credited immediately when a fund transfer request is made through SBI's mobile phone or internet banking or YONO.

More than six crore customers use the SBI Internet banking service. SBI will also waive IMPS charges for transferring funds of up to ₹ 1,000 through bank branches.

SBI has reduced interest rates on fixed deposits by 20 to 75 basis points at all maturities amid a drop in the interest rate throughout the financial system and the improvement of liquidity in the banking system. Analysts say that other banks may also follow the same soon and consider reducing their fixed deposit rates later.

Many banks like HDFC Bank, PNB, Bank of Baroda and Axis Bank had revised FD interest rates in July.

The SBI revision came days before the RBI monetary policy move that will be carried out on August 7. The RBI, which has already reduced the repurchase rate by 75 combined basis points this year, is expected to offer another rate cut. The government has already lowered interest rates on minor savings schemes such as the National Savings Scheme (NSC), Public Provident Fund (PPF) for the July-August quarter.

To senior citizens across all FD maturities, SBI offers 50-basis-point higher interest rate compared to others.

SBI latest fixed deposit rates

SBI offers fixed deposits with maturity ranging from 7 days to 10 years, made the most massive cuts in short-term deposits. The interest rate for the FD's from 7 to 45 days has been reduced to 5% (annual) from 5.75%. SBI FDs with a maturity between 46 days and 179 days also experienced a sharp deduction, with an interest rate that fell to 5.75% from 6.25%.

For deposits of 180 days to 1 year, SBI has cut the interest rate to 6.25%, from the previous 6.35-6.40%.

For fixed deposits between 1 year and less than two years, SBI has kept the interest rate stable at 6.7%. SBI 2-3 year FDs will reach 6.70%, compared to the previous 6.75%.

For deposits between 3 years and less than five years, SBI has reduced the interest rate to 6.6% from 6.8%. Also, in fixed deposits between 5 years and up to 10 years, SBI has reduced the interest rate to 6.5% from 6.6%. This also means that SBI's fixed tax savings deposits, which have a 5-year blocking period, will also get a lower interest rate.

SBI has also reduced the interest rate on bulk deposits of ₹2 crore or above.