The Central Bank, RBI has reduced the repo rate by 1.25 percent this year, which has benefited the common citizens. At this month’s Monetary Policy Committee meeting, the RBI reduced the repo rate by 25 basis points, following which many banks reduced interest rates on repo rate-linked loans. From home loans to car loans and personal loans, all types of loans have become affordable for both existing and new borrowers. India’s largest bank, SBI (State Bank of India) has also reduced its loan rates. This is good news, but there is also such news which may disappoint the customers keeping fixed deposits (FD) in banks.
After the RBI policy rate cut, SBI has reduced its lending rate by 25 basis points. After the latest cut, SBI’s External Benchmark Linked Rate (EBLR) has become 7.90 percent. This will make loans cheaper. However, due to the rate cut, the bank has also reduced the interest rates on Fixed Deposit (FD). SBI has reduced interest rates on FD for different tenures.
How much interest will you get on FD of different tenures?
SBI has reduced the deposit rate for deposits of more than 2 years and less than 3 years by 5 basis points. Now 6.40 percent interest will be available on these instead of 6.45 percent.
The interest rate on special ‘444-day’ FD, ‘Amrit Vrishti’ has been reduced by 15 basis points. Now interest on these will be 6.45% instead of 6.60%.
SBI has also reduced the Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points across all categories, taking the one-year MCLR to 8.70 percent as against the current 8.75 percent. SBI’s new rates will be applicable from Monday, December 15.
