Banks Slash FD Interest Rates: Compare To Know How Much Do These Banks Offer Now

Feb 10, 2020, 10:07 IST

SBI slashed its FD interest rates and the new interest rates take effect on February 10, 2020.
On FDs maturing in 7 to 45 days, the SBI interest rates remain the same while the interest rates are slashed for FDs with longer tenures.
Here we comparatively study the present interest rates of different banks to suggest where you stand to gain.

A day after the RBI’s monetary policy meet in the first week of February 2020, SBI has announced a sharp slash in the interest rates on the various FD products offered by the bank. The revised FD rates will take effect on February 10, 2020.

In a statement detailing the situation, SBI said, "In view of surplus liquidity in the system, SBI realigns its interest rate on Retail Term Deposits (less than ₹2 crs) and Bulk Term Deposits (₹2Crs and above) w.e.f. February 10, 2020. The bank slashed Term Deposits rates by 10-50 bps in the retail segment and 25-50 bps in the bulk segment.”

SBI’s interest rate cut impacts all the different tenors excepting those that will mature 7 days to 45 days. Earlier in January 2020, SBI slashed the interest rates by 15 bps on the FD products maturing in one year to less than two years.

Why the FD interest rates come down

Industry experts say that under some macroeconomic conditions similar to severe inflation, the Reserve Bank of India resorts to a tight monetary policy in order to regulate the credit found available in the country. Under such circumstances, the Repo rates increase (Repo rates mean the rates at which the central bank lends to different banks in the country).

As a result, the banks increase their fixed deposit rates. The Cash Reserve Ratio (the portion of bank deposits that the commercial banks need to deposit with the RBI) rate cut will cause more liquidity in the system. The CRR cut will pronounce a long term effect on the interest rates of deposits. Across select maturity baskets, many banks cut the interest rates on fixed deposits.

Interest rates comparison on Regular FDs

FD Investment Tenure	SBI Interest Rate February 2020	ICICI Interest Rate February 2020	HDFC Interest Rate February 2020	PNB Interest Rate February 2020
7 days to 45 days	4.50	4.00 to 4.75	3.50 to 4.90	4.50
46 days to 179 days	5.00	5.25	5.40	5.00
180 days to 210 days	5.50	5.75	5.80	6.00
211 days to less than 1 year	5.50	6.00	6.05	6.00
1 year to less than 2 year	6.00	6.30	6.30	6.30
2 years to less than 3 years	6.00	6.30 to 6.40	6.40	6.25
3 years to less than 5 years	6.00	6.40	6.30	6.25
5 years and up to 10 years	6.00	6.40	6.30	6.30

Interest rates comparison on Senior Citizen FDs

FD Investment Tenure	SBI Interest Rate February 2020	ICICI Interest Rate February 2020	HDFC Interest Rate February 2020	PNB Interest Rate February 2020
7 days to 45 days	5.00	4.50 to 5.25	4.00 to 5.40	5.00
46 days to 179 days	5.50	5.75	5.90	5.50
180 days to 210 days	6.00	6.25	5.80	6.50
211 days to less than 1 year	6.00	6.50	6.30	6.50
1 year to less than 2 year	6.50	6.70	6.80	6.80
2 years to less than 3 years	6.50	6.90	6.90	6.80
3 years to less than 5 years	6.50	6.90	6.80	6.75
5 years and up to 10 years	6.50	6.90	6.80	6.80

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