State Bank of India (SBI) has announced a reduction in interest rate on retail term deposits, in select maturities, with effect from December 8.
The downward revision of 25 basis points will be for deposits of less than Rs.1 crore. The change is not for short term deposits and only applies to deposits with maturities of one year and above.
In a regulatory filing to the stock exchange on Friday, SBI said the new interest rate on such deposits for one year to less than 3 year will be 8.50 per cent (per annum). Such deposits now earn 8.75 per cent.
With regard to deposits in the maturity bucket of 3 years to less than five years, the rate is being revised to 8.50 per cent (8.75 per cent).
Deposits for five year and above will earn interest of 8.25 per cent (8.50 per cent). The same, revised rates will also be applicable to NRE deposits for the tenors of one year and above, the bank said.
The bank has decided to maintain status quo on the interest rates on such short term deposits. The existing rates are: 5 per cent for deposits made for 7-45 days; 7 per cent for 46-179 days; 7.25 per cent for 180-210 days; 7.50 per cent for 211 days to less than a year.