SBI cuts deposit & lending rates for the 5th time this fiscal

September 10: State Bank of India, the country’s largest lender on Monday has cut its fixed deposit rates for the second time in a fortnight. The new rates will be effective from 10 September, 2019. The highest interest rate offered by the SBI is now just 6.50 percent on term deposits for 1 to less than 2 years. On deposits for 3 to less than 5 years and 5 to10 years, SBI is offering 6.25 percent interest.

SBI also reduced its marginal cost of lending rate (MCLR) by 10 basis points across tenors. Its one year MCLR now stands at 8.15%. This is SBI’s fifth consecutive cut in MCLR this fiscal. The new rule will be applicable to floating rate loans to retail, personal and MSME borrowers. The cut in rates comes in the backdrop of a consumption slowdown and a deteriorating global environment.

SBI latest FD interest rates (below ₹2 crore) for general public effective 10 September:

• 7 days to 45 days 4.50%
• 46 days to 179 days 5.50%
• 180 days to 210 days 5.80%
• 211 days to less than 1 year
• 1 year to less than 2 year 6.50%
• 2 years to less than 3 years 6.25%
• 3 years to less than 5 years 6.25%
• 5 years and up to 10 years 6.25%

If you are looking for a better and reliable place to open an FD account, and get better returns than SBI, the humble post office near you may provide the answer. Here is a comparison for your consideration.

Post office Time Deposit Interest rates:

• 1-year: 7%
• 2-year: 7%
• 5-year: 7.7%

Financial Express cites an example to make the comparison between deposits in SBI and Post Office. Suppose you plan to invest Rs 50,000, Rs 1,00,000, Rs 1,50,000 and Rs 2,00,000 in any of these term plans mentions. Here’s how your money will likely grow in SBI and Post Office.