SBI cuts fixed deposits rate by 25 basis points

State Bank of India has announced a 25 basis point cut in interest rates on fixed deposits for various slabs up to 550 days. But interestingly the bank has raised rates on two medium-term slabs.

As per the revised rate structure, SBI will continue to offer a maximum rate of 8.5% for three to ten years. For one year to 549 days the bank will offer 8.25% against 8% and for 550 days the bank will offer 8.5% against 8.75%. The bank will offer a minimum rate of 4.75% for 45 days against 5%. The revised rates are effective from December 17.

Given the low rates of inflation, it is quite possible that other banks will also follow suit. However, none of the banks have cut their interest rates on home loans except for the diwali mela which they announced some time ago.


If the oil prices remains stable and the government does not increase the oil prices it is quite possible that the inflation rate may remain low thus leading to possible fall in home loan rates.