SBI cuts FD rates by 40 bps across all tenors. Check the new rates here

After the steep rate cut, SBI's 1 year to less than 2 year FDs will fetch 5.1 per cent, 3 years to less than 5 years will earn 5.3 per cent and 5 years and up to 10 years will earn investors 5.4 per cent.

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The State Bank of India (SBI) has cut interest rates on its retail term deposits by 40 basis points (bps) across all tenors. The new rates are applicable from May 27. After this steep rate cut, SBI's 1 year to less than 2 year FDs will fetch 5.1 per cent, 3 years to less than 5 years will earn 5.3 per cent and 5 years and up to 10 years will earn investors 5.4 per cent.

This is the second time the PSU lender has cut FD rates in the month of May.

FD rates with effect from May 27

Tenors Existing rates Rates with effect from May 27 Existing rates for senior citizens Rates with effect from May 27
7 days to 45 days 3.3 2.9 3.8 3.4
46 days to 179 days 4.3 3.9 4.8 4.4
180 days to 210 days 4.8 4.4 5.3 4.9
211 days to less than 1 year 4.8 4.4 5.3 4.9
1 year to less than 2 year 5.5 5.1 6 5.6
2 years to less than 3 years 5.5 5.1 6 5.6
3 years to less than 5 years 5.7 5.3 6.2 5.8
5 years and up to 10 years 5.7 5.4 6.5 6.2
Source: SBI website

Earlier in May, SBI had lowered interest rates on its FDs by 20 bps which were applicable for FDs of up to three years effective from May 12, 2020.

Even though the bank had cut interest rates on certain FDs, it also launched an FD product to "safeguard the interests of senior citizens in the current falling rate regime," a press release from the bank stated. The product, SBI Wecare Deposit, is a retail term deposit for senior citizens. This scheme would be in effect up to September 30, 2020.

According to the release, under this new product, an additional 30 bps premium will be payable for senior citizen’s Retail term deposits with “5 Years and above” tenor only. This scheme would be in effect up to September 30, 2020.

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