New Delhi: The State Bank of India (SBI) on Tuesday announced that it has initiated a cut in retail fixed deposits (FD). The bank in a statement said that the change in the FD rate will be effective from January 10.

As per the announcement from the bank, the cut in the FD rates has been done by 15 bps on long-term deposits which would be maturing in one year to 10 years.

On the other hand, the deposits which would mature in 7 days to one year, the bank has kept the rates unchanged.

Prior to this, the SBI had cut the FD rates by 15 bps which would mature between one year to less than two years in November. Since November 2019, a number of banks are reducing their deposit rates after Reserve Bank of India slashed deposit rates by a cumulative 135 basis points so far this year.

As per the announcement, the FDs which will mature in 7 days to 45 days and 46 days to 179 days, the bank will give 4.50% and 5.50% interest respectively. And for the FD which will mature in 180 days to 210 days and 211 days to less than 1 year, the bank will give 5.80% interest.

However, the SBI has reduced the interest rate on fixed deposits maturing in one year to 10 years. These deposits, which earlier were getting the interest rate of 6.25%, will now get 6.10% interest. The development comes after the bank has slashed the interest rates on these deposits by 15 bps.

Moreover, the SBI has offered senior citizens of the country an additional 50 basis point interest rate across all tenures. For them the FDs which are maturing in 7 days to 45 days and 46 days to 179 days, the bank will give 5.00% and 6.00% interest respectively. And for the FDs which are maturing in 180 days to 210 days and 211 days to less than 1 year, the bank will give an interest rate of 6.30%. The bank, after bringing out the latest revision, will give 6.60% interest to senior citizens for maturity between one year and 10 years.