SBI reduces interest fixed deposit rates from July 2017

SBI reduces interest fixed deposit rates from July 2017

New Delhi,July7:SBI or State Bank of India has revised term deposit of fixed deposit rates from July 1, 2017. SBI, for example, has cut interest rate on 1-year FD to 6.75 per cent from 6.9 per cent. Similarly, on fixed deposits with maturity between 1-year and 455 days the rate has been cut to 6.5 per cent from 6.9 per cent earlier. Also, SBI has reduced interest rate on deposits between 456 days to less than 2 years to 6. 5 per cent, from 6.75 per cent. These rates are for retail deposits below Rs. 1 crore. SBI’s move come amid a declining interest rate across the financial system. Senior citizens get about 50 basis points higher rates as compared to other depositors.

TenorsEarlier ratesRevised from 01.07.2017Earlier rates for senior citizensRevised for senior citizens from 01.07.2017
7 days to 45 days5.55.566
46 days to 179 days6.56.577
180 days to 210 days6.56.577
211 days to less than 1 year6.56.577
1 year6.96.757.47.25
Above 1 year to 455 days6.96.57.47
456 days to less than 2 years6.756.57.257
2 years to less than 3 years6.256.256.756.75
3 years to less than 5 years6.256.256.756.75
5 years and up to 10 years6.256.256.756.75

Source: SBI website

Other things to know about SBI fixed deposits, according to its website.

The minimum required for an SBI term or fixed deposit is Rs. 1,000.The tenure can be from 7 days to 10 years

SBI also provides loan facility against deposits

Payment of interest at Monthly/Quarterly/Calendar quarter basis as per your requirement.

For retail term deposits up to Rs. 5 lakh, the prepayment penalty will be ‘NIL’ provided the deposits have remained with the bank for at least 7 days.

For term deposits above Rs. 5 lakh but less than Rs. 1 crore, the prepayment penalty will 1 per cent for all tenors