State Bank of India cuts its term deposits rate by 50 basis points

Mumbai: The State Bank of India has cut its term deposits rate for various maturities by up to 50 basis points. These revised rates will affect the medium and long term deposits and for maturities amounting below Rs one crore and will come into affect for fresh deposits and renewals from April 29, 2017.

For short term deposits,(maturing between seven days to less that two years), the rates have been left unchanged. The bank said that according to the new structure, the largest lender, SBI, will offer a rate of 6.25 per cent as compared to 6.75 per cent earlier on deposits with a maturity time between Two to three years.

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The bank has also cut down the deposit rates, for senior citizens, from 7.25 per cent to 6.75 per cent for the similar maturity. Meanwhile, the rates have been lowered by 25 basis points to 6.50 bps for deposits maturing between three years and ten years.

The marginal cost of funds based lending rates has also not been changed. Its one-year MCLR is at eight per cent.