State Bank of India (SBI), India’s largest public sector bank, has cut its fixed deposit rates effective from April 13, 2009. The rate cuts range from 0.25% to 0.50% on various deposit terms. With these cuts, the highest interest rate offered by SBI is for a term of 8 years to 10 years with the rate being 8.50%. You can get 8.25% for fixed deposit terms of 1000 days and 5 years and above to less than 8 years.

Other banks are expected to follow SBI’s lead and cut their deposit rates soon.  

Bank of India has already announced a reduction in its interest rates from April 15. Corporation Bank, Bank of Baroda and UCO Bank are expected to follow soon in cutting the interest on FDs.

Given the impending cuts, fixed deposit investors would be well advised to take advantage of higher rates that are being offered currently. Good interest rates on fixed deposits can still be obtained from private sector banks such as Development Credit Bank and Tamilnad Mercantile Bank.

Comments

Leave a Reply

Name (required)

Email Address(required)

Website

Security Code: