SBI, the country's largest bank, announced a 0.40% reduction in the interest rate on Fixed Deposit for all periods on Wednesday. The bank has reduced the interest rate on term deposits for the second time in a month. SBI has said on its website that these changes in the interest rate on FD have come into effect from May 27. The State Bank has also reduced the interest rate by 0.50% on bulk deposits (over Rs 2 crore). The bank will pay interest at the maximum rate of three percent to the general depositors on bulk deposits. These changes in rates have also come into effect from Wednesday.
After this recent revision, SBI's 7-day to 45-day FD will now get an interest rate of 2.9%. On term deposits of 46 days to 179 days, the bank will have an interest rate of 3.9%. Fds of more than 180 and less than one year will now get an interest rate of 4.4%. The bank is paying interest at the rate of 5.1% on FDs for a period of one year to three years. SBI will pay interest at the rate of 5.3% on FDs for three to five years. Fds for a period of five years to ten years will get an interest rate of 5.4%.
Banks will provide interest at this rate from May 27 to common deposit payers (excluding senior citizens) at fixed deposits of less than Rs 2 crore:
7 days to 45 days - 2.9%
46 days to 179 days - 3.9%
180 days to one year - 4.4%
1 year to three years - 5.1%
3 years to 5 years - 5.3%
Five years to 10 years - 5.4%
The bank pays more interest of 0.50% to senior citizens. However, the bank will pay an interest rate of 6.20% on FD from five to 10 years.
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