SBI reduces interest on fixed deposits. Here's the new rule

New Delhi: Country's largest lender State Bank of India has cut its term deposit rates by 0.25 percent effective from October 1.

The rates have been revised for up to 1-year term deposits and for amount below Rs one crore.

According to the new structure, for up to 1-year deposits, SBI will offer a rate of 6.50 percent as compared to 6.75 percent earlier, the bank said.

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

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