India's biggest bank State Bank of India or SBI today announced further cut in fixed deposit rates - the second rate cut on FD rates in less than a month. SBI has cut retail FD rates by 10 to 50 basis points across maturities while bulk deposits have also seen a 30-70 basis-point cut across tenors. The revised rates will come into effect from 26 August. SBI cited falling interest rate scenario and surplus liquidity for the latest rate cut on fixed deposits. SBI had earlier revised FD rates from 1 August.

The RBI cut its repo rate by 35 basis points this month, its fourth cut this year, taking its year-to-date reduction to 110 points. The RBI chief also earlier this week urged banks to pass on the central bank's rate cuts to borrowers.

SBI latest FD rates (below 2 crore) for general public effective 26 August

7 days to 45 days- 4.50%

46 days to 179 days- 5.50%

180 days to 210 days-6.00%

211 days to less than 1 year-6.00%

SBI latest FD rates (below 2 crore) for general public for maturity between 1 year and 3 years

1 year to less than 2 year-6.70%

2 years to less than 3 years-6.50%

SBI latest FD rates (below 2 crore) for general public for maturity between 3 years and 10 years

3 years to less than 5 years-6.25%

5 years and up to 10 years-6.25%

SBI latest FD rates (below 2 crore) for senior citizens effective 26 August

Senior citizens continue to get an additional 50 basis points over the FD interest rates. SBI has slashed the interest rates on its deposits for general customers and senior citizens across all tenors with effect from 26 August. For 7 to 45 days, SBI will give 5.00% rate. For 211 days to less than 1 year, the bank will give an interest rate of 6.50%.

7 days to 45 days- 5.00%

46 days to 179 days- 6.00%

180 days to 210 days-6.50%

211 days to less than 1 year-6.50%

SBI latest FD rates (below 2 crore) for senior citizens for maturity between 1 year and 3 years

For FDs maturing in 1 year to less than 2 years will give an interest rate of 7.20% to senior citizens.

1 year to less than 2 year-7.20%

2 years to less than 3 years-7.00%

SBI latest FD rates (below 2 crore) for senior citizens for maturity between 3 years and 10 years

For deposits maturing in 3 years to 10 years, SBI gives 6.75% interest to senior citizens.

3 years to less than 5 years-6.75%

5 years and up to 10 years-6.75%

SBI latest FD rates here
SBI latest FD rates here

SBI has however decided not to reduce the savings bank interest rate further and hold the same at the existing level of 3.00% for customers with balances above 1 lakh. Customers with savings account balance up to 1 lakh will continue to get the rate of interest at 3.50%.

From May this year, SBI had linked the interest rate on savings bank deposits (for balances above 1 lakh) with RBI's repo rate (275 bps below repo rate) without changing the rate of 3.50% for savings account balances up to 1 lakh.

If SBI had transmitted this month's RBI's repo rate cut to savings bank deposits, the interest rate on savings account deposits with balances above Rs1 lakh would have dropped to 2.65% (275 bps below current repo rate of 5.40%) with effect from September 1, 2019.

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