SBI has cut interest on retail term deposits. The new rates come into effect from 10 January 2020. Customers of State Bank of India (SBI), the country's largest government bank, have suffered a setback.

According to the information given on the bank's website, the lender has reduced the interest rates on fixed deposit deposits from one year to 10 years from 6.25 percent to 6.10 percent. For fixed deposits for a period ranging from seven days to 45 days and 46 days to 179 days, the bank is offering interest rates of 4.50 per cent and 5.50 per cent respectively.

Interest rate of 5.80% will be available on fixed deposits deposited for a period of 180 days and less than one year. The bank is offering 50 basis points higher interest rate to senior citizens. Senior citizens will get interest at the rate of 6.60 per cent on fixed deposits maturing from one year to 10 years. Last month, the bank cut its external benchmark based rate (EBR) by 25 basis points from 8.05 per cent per year to 7.80 per cent per year. With this, the home loan rate of the bank also decreased from 8.15 percent to 7.90 percent.