For the customers of State Bank of India (SBI), Wednesday was a little happy and a little sad. In fact, SBI gave the good news to the customers taking the loan by reducing the interest rates on the MCLR based loan. At the same time, the bank has cut interest on Fixed Deposit (FD) amount deposited in savings account. The loss of this decision will be to the customers who have got FD in SBI.

What decision did SBI take?

According to the statement issued by SBI, the bank will now pay interest of 3.25 per cent to those keeping deposits up to Rs 1 lakh in a savings account. Till now, bank customers used to get interest on this amount at the rate of 3.50 percent. The revised interest rates on SBI's savings account will come into effect from 1 November 2019.

Similarly, SBI has cut deposit rates by 0.10 percent on retail FDs with maturity ranging from 1 year to two years. After this deduction, the interest rate has come down from 6.50 per cent to 6.40 per cent. SBI has a deposit retail FD of less than Rs 2 crore.

– On the other hand, SBI has cut the interest rates by 0.30% on deposits of bulk FD i.e. 1 crore or more of 1 year to two years. It has now come down from 6.30 per cent to 6.00 percent. The new rates of retail and black FD will be applicable from 10 October i.e., tomorrow.

Earlier, giving relief to the common people, SBI has reduced the marginal cost based interest rate (MCLR) on all types of loans by 0.10 percent. After this announcement by the bank, the interest rate on home loan will be reduced. After this deduction, LCLR of one year loan has come down to 8.05 per cent.