SBI FD Rates: SBI has slashed interest rates on fixed deposits, and the Amrit Varsha scheme has also seen a reduction..
The Reserve Bank of India recently reduced interest rates by 25 basis points. Following this, it was expected that banks would also soon lower interest rates on fixed deposits (FDs). State Bank of India (SBI), the country's largest public sector bank, has now reduced interest rates on FDs. Investors will now receive lower interest on some FD schemes, including Amrit Vrishti.
SBI has reduced interest rates on certain FD tenures. There is no change in interest rates for FDs ranging from 7 days to 2 years. However, for FDs with a tenure of 2 years to less than 3 years, the interest rate for general citizens has been reduced from 6.45% to 6.40%. For senior citizens, this rate has decreased from 6.95% to 6.90%. The new rates will be effective from December 15.
How much have FD interest rates changed?
There is no change in interest rates for FDs with a tenure of 7 days to 2 years.
The interest rate for FDs with a tenure of 2 years to 3 years has been reduced from 6.45% to 6.40%.
There is no change in the interest rate for FDs with a tenure of 3 years to 5 years. It remains at 6.30%.
The interest rates for FDs with a tenure of 5 years to 10 years have also not been changed. This rate remains at 6.05%.
How much has Amrit Vrishti been reduced?
SBI has also changed the interest rate on its special scheme called 'Amrit Vrishti', which has a tenure of 444 days. This rate has been reduced from 6.60% to 6.45%. For senior citizens, the interest rate on 'Amrit Vrishti' has decreased from 7.10% to 6.95%. For super senior citizens (80 years and above), this rate has been reduced from 7.20% to 7.05%. Additional Benefits for Senior Citizens
According to the SBI website, super senior citizens receive an additional 10 bps (0.10%) benefit on the interest rate applicable to senior citizens. This special scheme does not apply to Recurring Deposits (RD), Green Rupee Term Deposits, Tax Saving Scheme 2006, MODS, CapGain Scheme, and Non-Callable Term Deposits.
Home Loan EMIs also reduced!
SBI has also reduced its home loan interest rates. The bank has lowered the interest rates on all its major loan benchmarks, such as MCLR, EBLR, and RLLR. SBI has also revised its BPLR and Base Rate. These reductions will make borrowing cheaper and are expected to lower EMIs for retail and corporate customers.
SBI has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) for various tenors. This will provide some relief to borrowers. The overnight and one-month MCLR rates have been reduced from 7.90% to 7.85%. The three-month MCLR rate has been reduced from 8.30% to 8.25%. The six-month MCLR rate is now 8.60%, down from 8.65%. Similar reductions have been made for longer-term loans as well. The one-year MCLR has been reduced from 8.75% to 8.70%. The two-year and three-year MCLR rates have also been reduced by 5 basis points.
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