SBI Slashes Fixed Deposit Rates Amid Policy Adjustments

State Bank of India (SBI), the country's largest lender, has reduced fixed deposit rates by 20 basis points across tenors effective May 16. This change applies to retail domestic term deposits below Rs 3 crore for both general public and senior citizens, following RBI's policy rate cuts to stimulate growth.

In a significant move reflecting the ongoing adjustments in the financial sector, the State Bank of India (SBI), the nation's largest bank, has lowered its fixed deposit rates by 20 basis points across various tenors, effective from May 16.

The new rates are applicable to retail domestic term deposits valued below Rs 3 crore, targeting both the general public and senior citizens. Notably, deposits for periods ranging from two years to less than three years now offer the highest interest rate of 6.7 percent to investors, with other tenors providing slightly lesser returns.

This rate cut comes in the wake of the Reserve Bank of India's decision in April to reduce key interest rates by 25 basis points for the second consecutive time, aiming to bolster economic growth in the face of external threats such as reciprocal tariffs from the U.S.

(With inputs from agencies.)