Mumbai: Below 7 per cent interest rate for one year retail fixed deposits seem to be a reality in the near future while domestic bulk term deposit of rupees one crore and above) it is already 6.75 per cent with effect from April 27, 2016.
Country’s largest bank State Bank of India has revised one year domestic term deposit rate to 7.15 per cent for deposits below Rs 1 crore with effect from September 1, 2016.
A SBI official confirmed the rate revision to Financial Chronicle. Interest rates for bank fixed deposits have come down sharply from 9-10 per cent which was offered a couple of years back. Most mainstream banks are offering interest rates of 8 per cent or less, only co-operative banks are offering higher rates, said a financial planner.
SBI revised downward the interest rate of retail term deposits for 1 year to 3 year period with effect from September 1, 2016 to 7.15 per cent from 7.25 per cent for 1 year to 455 day period; 7.25 per cent from 7.50 per cent for 465 days to 2 year period and also 7.25 per cent from 7.50 per cent for 2 year to less than 3 year period.
The bank kept the retail term deposit rates unchanged for 7 to 45 days at 5.50 per cent; 46 to 79 days at 6.50 per cent; 180 to 210 days at 6.75 per cent and 211 days to less than a year at 7 per cent.
The retail term deposit rate for 3 to 5 years and 5 years to 10 years were also kept unchanged at 7 per cent and for senior citizens those more than 65 year old at 7.25 per cent.
SBI also revised the fixed deposit rates for the senior citizens for these three tenures with effective rates from September 1 being 7.40 per cent from 7.50 per cent for 1 year to 455 day period, 7.50 per cent from 7.75 per cent for 465 days to 2 year period and also 7.50 per cent from 7.75 per cent for 2 year to less than 3 year period.
