SBI cuts term deposit rates by 0.5 to 1 per cent

State Bank of India (SBI), the country's largest lender, today announced a 50 to 100 basis point reduction in its term deposit rates, across various maturities, indicating a softening of interest rates.

SBI lowered interest rate payable to deposits between 241 days and one year by a full 100 basis points to 6.5 per cent from the existing 7.5 per cent.

For maturities between 180 days and 240 days, the new deposit rate would be down 0.75 percentage points lower at 6.50 against the current 7.25 per cent.

All new rates are effective from 7 September, SBI said in a release.

The reduction in interest rates for other term deposits have been 0.5 per cent or below.

For term deposits of 7-90 days, the new interest rate will come down to 6.50 per cent from 7 per cent at present.