With effect from October 1, 2017, just ahead of the monetary policy rate announcements due today, the State Bank of India which accounts over one-fifth of total assets, has cut interest rate on one year FD to 6.5% (a 25 basis point reduction). Senior citizens will get an interest of 7% on a one-year fixed deposit. The revision has been made in just three months time and for the FD it is in respect of deposits below Rs. 1 crore.

The interest rate for SBI employees as well as pensioners will be 1% higher in comparison to the applicable rates. For senior citizens and SBI pensioners aged 60 years and above, the rates will be higher by 0.5% for all tenures. So a SBI resident senior citizen pensioner is eligible for both 1% interest payable to SBI employees and another 0.5% payable to Indian senior citizen.

Base rate has been revised to 8.95% from 9% earlier. As of now, most financial institutions are offering home loan @ 8.35% for women borrowers and for other the rate has been kept at 8.4%.

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