As inflation rises, many rely on FDs for safe returns, but SBI’s rate cut has come as a shock to investors. The Reserve Bank of India (RBI) cut the repo rate in recent times. Because of this, many banks, including SBI, have lowered their FD rates. This step has also affected senior citizens who now face reduced returns on their savings.
SBI Lowers FD Rates for Short-Term Deposits
State Bank of India (SBI), India’s largest bank, has cut rates on certain short-term FDs. The new rates are effective from today. Deposits between 46 days to less than 1 year have their rates reduced by 0.15%.
3 Short FD Schemes Get Lower Rates
SBI has made a 0.15% cut in interest rates for three short-term FD options. General customers have watched the 46 to 179-day FD rate fall from 5.05% to 4.90%.
FD for 211 Days Also Affected
Interest rate for general investors on FDs between 211 days to below one year has been lowered to 5.90% from 6.05%.
Senior citizens are also entitled to a decrease of 15 basis points. The 46 to 179-day FD interest rate has been lowered from 5.55% to 5.40%.
FD Rates for 180–210 Days Also Fall
SBI has also lowered rates for FDs with a duration of 180 to 210 days. The revised rate is 6.15%, from 6.30%. For the 211-day to less-than-one-year term, the rate for seniors has been cut from 6.55% to 6.40%.
SBI is now offering FD interest rates between 3.05% and 6.45% for regular customers, depending on the deposit period (excluding Amrit Kalash special schemes). For senior citizens, the interest rate would be between 3.55% and 7.05% for such products like SBI WeCare.
If you’re planning to invest in an FD, you’ll now get slightly less interest. The cut may not look large, but in the long term it may affect your savings. Particularly in elderly people, this adjustment may be disappointing.