The Hindu Business Line : SBI cuts short-term deposit rates

State Bank of India on Monday revised its interest rates on deposits, reducing the rate on deposits of one-to-less than two years’ maturity and increasing the rates on deposits of three years and more.

The country’s largest lender reduced the interest rate on deposits of one-to-less than two years’ maturity by 25 basis points, to 8 per cent.

The interest rate on term deposit of two-to-less than three years has been kept unchanged at 8.25 per cent while that on longer tenor — of beyond three years — has been increased by 25 basis points to 8.50 per cent.

The revised rates will come into effect from August 9, said a press release from the bank.

The bank has also reduced the interest rate on its ‘Super Saver Term Deposit Scheme’, for the tenor of four years-and-above but less than five years by 25 basis points to 9.25 per cent.

“The rate of interest on five years and above under this scheme will be aligned to the card rates of corresponding maturity,” said the release.

The rate for the bank’s 550-day deposit scheme called ‘SBI Smart Deposit’ has also been reduced by 25 basis points to 9.25 per cent. Senior citizens (aged 60 and above) will, however, receive an interest that is 50 basis points higher for deposits of one year and above.

In response to the policy measures taken by the RBI, chiefly the 50-basis point hike in cash reserve ratio which came into effect on August 4, some banks have already cut their deposit rates to reduce their cost of funds.

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