SBI Now Pays 4.9% Interest On 1-Year Fixed Deposit. Here Are Other Rates

SBI Fixed Deposit Interest Rate: State Bank of India marginally revised interest rates on fixed deposits earlier this month. With effect from September 10, SBI pays an annual return of 5.40 per cent to senior citizens and 4.90 per cent to other customers retail deposits - or fixed deposits up to Rs 2 crore - of a maturity period of one year to less than two years, according to the lender's website - sbi.co.in. That marks a 20-basis-point lower in the interest rates, compared to the existing 5.60 per cent and 5.10 per cent respectively. 

Commercial banks such as SBI - the country's largest lender by assets - revise the interest rates applicable to various financial instruments, such as term deposits - also known as fixed deposits, which are deposits locked in for a "fixed" period of time at a pre-defined rate. 

Here are the latest interest rates provided by SBI on its retail fixed deposits:

FDs have been the financial instrument of choice for more conservative investors with a generally low risk-appetite. 

Last month, the Reserve Bank of India (RBI) held the repo rate - or the key interest rate at which it lends short-term funds to commercial banks such as SBI - steady at 4 per cent, promising to retain an "accommodative" stance for as long as necessary to revive growth and mitigate the impact of COVID-19 while ensuring inflation remains within target. 

The RBI has already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50 per cent.