SBI’s new FD rates, free IMPS money transfer effective from today. Details here

The country’s largest bank SBI has lowered its bank fixed 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 6 crore customers use SBI's internet banking facility. SBI will also waive IMPS charges for fund transfer up to ₹1,000 through branch banking.

SBI has slashed interest rates on fixed deposits by 20 to 75 basis points across all maturities amid a fall in the interest rate across the financial system and improving liquidity in the banking system. Analysts say that other banks are also expected to follow suit and may consider reducing their fixed deposit rates later.

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

SBI’s move comes days ahead of the RBI’s monetary policy review due August 7. The RBI, which has already cut repo rate by a combined 75 basis points this year, is widely expected to deliver another rate cut. The government has already reduced interest rates on small savings schemes such as the National Savings Scheme (NSC), Public Provident Fund (PPF) for the July-August quarter.

SBI offers 50-basis-point higher interest rate to senior citizens across all FD maturities than what others get.

SBI latest fixed deposit or FD rates

SBI, which offers fixed deposits with maturity ranging from 7 days to 10 years, made the biggest cuts on shorter-term deposits. Interest rate for 7-45 days FDs has been cut to 5% (annual) from 5.75%. SBI FDs with maturity between 46 days to 179 days also saw a sharp cut, with interest rate falling to 5.75% from 6.25%.

Watch: SBI slashes fixed deposit rates, other banks may follow

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

For fixed deposits between 1 year and less than 2 years, SBI has kept interest rate steady to 6.7%. SBI’s 2-3 year FDs will fetch 6.70%, as compared to 6.75% earlier.

For deposits between 3 years to less than 5 years, SBI has lowered interest rate to 6.6% from 6.8%. Also, on fixed deposits between 5 years and up to 10 years, SBI has cut interest rate to 6.5% from 6.6%. This also means that SBI’s tax-saving fixed deposits, which have a lock-in period of 5 years, will also fetch lower rate of interest.

SBI has also cut interest rate on bulk deposits ( ₹2 crore or above).