State Bank of India (SBI), in view of the falling interest rate scenario and surplus liquidity, has announced a reduction in fixed deposit interest rates across all maturities. In a press release, the bank stated that the new rates will be effective from August 1, 2019.
The SBI has revised interest rate on fixed deposits(FDs) across tenors from 45 days to ten years from August 1, 2019. On FDs below Rs. 2 Crore for one year to less than two years, interest rates reduced by 20 basis points to 6.80%. 6.60% interest is applicable for FDs maturing in three years to less than five years. This comes as bad news for fixed income investors as the government reduced interest rates on small savings schemes like National Savings Scheme, Kisan Vikas Patra and Public Provident Fund have been cut by 10 basis points.
Here is a look at the revised fixed deposit rates: (All figures in % per annum)
SBI Cuts Interest Rates - revised fixed deposit rates: