The country's largest state run bank SBI after cutting down on its home and loan rate to the lowest in the industry has now slashed interest earnings on FD for most maturities by 25 basis points. Domestic term deposits for less than Rs. 1 crore and a term of less than 2 year will now earn 6.25% in comparison to 6.5% earlier. Those FDs with maturities over 2 years and upto 10 years shall now fetch 6% as against the previous 6.25%.
For senior citizens, the FD rates for maturities spanning less than two years and 2 years to 10 years shall be 6.75% and 6.5% respectively. For bank's staff as well as SBI pensioners, the rates shall be 1% higher than the applicable rates. The new rates effective from November 1, 2017 are applicable on fresh term deposits as well as renewals.
Meanwhile other banks in the private space have also reduced interest on FDs. For instance, HDFC bank has lowered interest to 6% for NRO and NRE FDs with maturity term between 6 months 1 day and 9 months 15 days. Other deposits for 1 year and those with maturity of 2 years 1 day to 10 years shall fetch 6.75% and 6% interest respectively. Senior citizens on the other hand shall earn higher by 0.5% for such term deposits.