Largest lending bank of the country State bank of India revised its deposit rates. The bank has lowered its retail deposit rates by 0.50%. The new rates are effective from 18th February, 2014. Bank has made amendments in rates like deposits for the tenure of 2 to 5 years have been reduced by 0.25% and deposits for tenure greater than 5 years are reduced by 0.50%. Present bank rates for the time period of three to five years is 8.75% and for 5 years and above it is 8.50% per annum.
Whereas for the huge deposits of greater than 1 crore bank lowered rate by 0.75%. Last week united bank of India, Canara Bank also revised their rates on fixed deposits. Banks are making changes in their rates after the apex bank has revised the rates. Customers may face increase in EMIs and push up in borrowings for the corporate.