SBI reduces interest on fixed deposits

State Bank of India, the country's largest lender, has cut its term deposit rates by 0.25 per cent with effect from 1 October .

The revised rates are applicable for deposits below Rs1 crore and for periods of up to 1-year.

As per the revised rate structure, SBI will offer interest  rate of 6.50 per cent for such 1-year deposits against  6.75 per cent offered earlier.

For the similar maturity, the deposit rates for senior citizen have been cut to 7 per cent from 7.25 per cent.

From 1 October , SBI also reduced its base lending rate to 8.95 per cent per annum from 9 per cent while its MCLR or marginal cost based lending rate continued to be at 8 per cent on one-year tenure loans.