SBI Cuts Fixed Deposit Interest Rates; Loans Get Cheaper

Updated: Friday, February 7, 2020, 10:36 [IST]

Following RBI's Monetary Policy Statement, the State Bank of India (SBI) announced a cut in its retail fixed deposit (FD) interest rates across various tenures. The country's largest bank also reduced its lending rates. The new rates on loans and deposits will be effective from 10 February 2020.

Fixed deposit interest rates

In its latest revision, SBI has kept the interest rates unchanged on shorter tenures of up to 45 days. A sharp rate cut of 50 basis points was made for interest on 46-179 days period.

Revised SBI interest rates on deposits below Rs 2 crore with effect from 10 February 2020:

Tenure	Existing rates (%)	Rates with effect from 10 Feb 2020 (%)
7 days to 45 days	4.50	4.50
46 days to 179 days	5.50	5.00
180 days to less than 1 year	5.80	5.50
1 to 10 years	6.10	6.00

An additional 0.50 percent interest to senior citizens across all tenures continues.

Revised SBI interest rates for senior citizens on deposits below Rs 2 crore with effect from 10 February 2020:

Tenure	Existing rates (%)	Rates with effect from 10 Feb 2020 (%)
7 days to 45 days	5.00	5.00
46 days to 179 days	6.00	5.50
180 days to less than 1 year	6.30	6.00
1 to 10 years	6.60	6.50

SBI Staff and SBI pensioners will get 1 percent above the applicable rates. The changes will apply to fresh deposits and renewals of maturing deposits.

SBI loans get cheaper

SBI also announced a reduction of 5 basis points in MCLR (Marginal Cost of Funds Based Lending Rates) across all tenures. This is the ninth cut in MCLR by the bank for the financial year 2019-20.

"The impact of recent RBI policy measures and reduction in deposit rates will be reflected in the next review of MCLR," it said.

MCLR is applicable to most common retail loans like home and auto.