Aug 06: State Bank of India has announced today the revised rates on various time band deposits that will come in effect from Aug 09. As per the new guidelines of RBI, SBI has cut the rate in the short duration deposits while hikes the rates in long-term deposits.
State Bank of India has cut the interest rate of 25-point basis on the term deposit of 1 year to less than 2 years. It will be now 8% from Aug 09 in the comparison of 8.25% of the present time. The senior citizen will get 8.5% in the place of 8.75% from the effective date. On the other hand, it hikes the deposit rate 25-point basis for the three years to ten years.
This declaration has come just hardly within a week after the declaration of RBI on July 31 in which Reserve Bank of India has hiked the rates up to 50-point basis. There is no change in interest rate on term deposits of 15 days to 45 days, which stands at 5.5%. Interest rate on deposit rates of 46-270 days will be 5.5%.
SBI has introduced a new time band of 3 to less than 10 years in which the interest rate will be 8.5% as against 8.25 % in 5 years and above duration. The interest rate on term deposits of 2 years to less than 3 years will be 8.25% while the term deposits for 271 days to less than a year will be 6.75% as against 6.50% from the earlier time frame of 180 days to less than a year.
The Senior Citizens will get 8.75% for the term deposits of 2-3 years while for deposits of 3-10 years; the same will be 9%.
Last week Finance Minister P. Chidambaram had asked the nationalised banks to slash rates on bulk deposits in a meeting with the head honchos of public sector banks. Chidambaram expects deposit rates to stabilise at 8.5% from as high as 10%.
"Banks may lower deposit rates of one-year maturity by 0.5%. Some banks have already done that and the interest rate has come down to 8.5%. My impression is that it will stabilise at that level," Chidambaram told reporters after a meeting with CEOs of state-run banks.
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