SBI Deposits: If you have term deposits in the State Bank of India (SBI) then from November 10th, your returns on SBI term deposits are going to yield lesser. The largest Indian commercial bank has decreased the interest rate on term deposits from one year to two years by 15 bps while on bulk SBI term deposits, interest rates have been reduced from 30 bps or 0.30 per cent to 75 bps or 0.75 per cent. Informing about the decision the SBI said that the decision has been taken keeping abundant liquidity with the bank in mind.
From 10th November 2019 onwards, the SBI term deposits for one year to two years will yield 6.25 per cent instead of existing 6.4 per cent while in the case of SBI bulk deposits the interest rate will vary from 4 per cent to 5.25 per cent, depending upon the tenure of SBI deposit. The interest rate payable to SBI Staff and SBI pensioners will be one per cent above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.50 per cent above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1 per cent) and resident Indian Senior Citizens (0.50 per cent).
For bulk SBI deposits for 7 days to 45 days, interest rate will be 4 per cent instead of 4.3 per cent; for 46 days to 179 days new interest rate will be 4.75 instead of existing 5.3 per cent; for 180 days to less than one year SBI bulk deposits, interest rate will be 5.25 per cent instead of 5.70 per cent; one 1 year to less than 3 years new interest rate will be 5.25 per cent while the existing interest rate is 6 per cent and from three years to up to 10 years new interest rate applicable from 1st November 2019 will be 5.25 instead of 5.75 per cent.
Premature penalty for Bulk Term Deposits for all tenors will be 1 per cent. It will be applicable for all new deposits including renewals. There is no discretion for reduction or waiver of penalty for premature withdrawal of term deposit The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks.