Image Source: TIMES NOW

State Bank of India, the country's biggest lender, reduced interest rates on its term deposits for the second time this month. The state-owned lender slashed interest rates on fixed deposits by 40 basis points (bps) across all tenor. The sharp cut in SBI's term deposit rates comes after the Reserve Bank of India last week cut repo rate by 40 basis points to 4% from 4.40% earlier. On bulk deposits (Rs 2 crore or more), SBI has cut interest rates by 50 basis points. The revised interest rates are applicable from today 27 May 27. Following this revision, SBI offers maximum interest rate of 5.40% on fixed deposits of five years to 10-year tenor as compared to 5.70% earlier. Earlier, on May 12, SBI had slashed interest rates on term deposits for ‘upto 3 years’ tenor by 20 bps. SBI Wecare FD scheme, which was announced for senior citizens to give them higher interest in this falling interest rate scenario, now offers 6.20% interest to senior citizens on FDs of five years and higher tenure. Earlier this scheme was providing 6.50% interest.

7 days to 45 days - 2.90%
46 days to 179 days - 3.90%
180 days to 210 days - 4.40%
211 days to less than 1 year - 4.40%
1 year to less than 2 year - 5.10%
2 years to less than 3 years - 5.10%
3 years to less than 5 years - 5.30%
5 years and up to 10 years - 5.40%

Senior citizens will get 50 basis points higher rate on the rates mentioned above except for the 5-10 years tenure in which they will get 80 basis points higher interest as compared to general public.