Latest news with #AmritVrishti
Mint
6 days ago
- Business
- Mint
After latest rate cut, SBI offers these interest rates on fixed deposits & savings account
SBI rate cut: After the latest RBI rate cut on June 6 after which the benchmark interest rate was slashed by 50 basis points to 5.5 percent, most banks revised their interest rates on loans as well as on fixed deposits (FDs). The banks which have already cut their interest rates include HDFC Bank, Bank of Baroda, Kotak Mahindra and Union Bank of India. Following this, the country's largest lender State Bank of India (SBI) also revised its interest rates on fixed deposits (FDs) as well as savings bank accounts starting June 15. After the latest interest rate revision, SBI offers 2.5 percent interest on savings accounts. On fixed deposits (FD), SBI now offers 6.25 percent when the tenure is between 1 to 2 years against 6.5 percent earlier. On tenure between 2-3 years, the bank now offers 6.45 percent against 6.70 percent. On tenure between 3-5 years, the bank now offers 6.30 percent against 6.55 percent earlier. And when the tenure is between 5-10 years, the bank now offers 6.05 percent against 6.30 percent earlier. The interest rate of the specific tenor scheme of 'Amrit Vrishti'(444 days) has also been revised from 6.85 per cent to 6.60 per cent with effect from June 15, 2025. As far as short tenure (7-45 days) is concerned, the bank - with effect from June 15 - will offer 3.05 percent instead of 3.30 percent earlier. Tenor General citizens(%) Senior citizens (%) 7-45 days 3.05 3.55 46-179 days 5.05 5.55 180-210 days 5.80 6.30 211 to 1 year 6.05 6.55 1-2 years 6.25 6.75 2-3 years 6.45 6.95 3-5 years 6.30 6.80 5-10 years 6.05 7.05* On tenure between 46 to 179 days, the bank now offers 5.05 per cent instead of 5.30 percent. The new rates on tenure between 180 to 210 days will be 5.80 percent instead of 6.05. And when the tenure is between 211 days to less than one year, the interest is 6.05 percent instead of 6.30 percent. Senior citizens are entitled to receive an extra 50 basis points. For all personal finance updates, visit here
Time of India
7 days ago
- Business
- Time of India
SBI's highest FD rate now falls to 6.7%. Are debt funds more attractive than ever now?
With SBI , the largest public sector lender, highest fixed deposit rate falling to 6.7% post repo rate and CRR cut by RBI and around 260 debt mutual funds outperforming it, mutual fund experts mention that debt mutual funds are now relatively well-positioned versus traditional fixed deposits—especially as FD rates continue to reset lower and with the RBI recently shifting its stance from accommodative to neutral, the room for further aggressive easing may be limited. 'This makes it a good time for investors to consider short duration funds for stability, and dynamic bond funds for flexibility to capture any residual fall in yields or rate volatility. Banking & PSU funds, which invest in high-quality issuers, remain a strong choice for conservative investors seeking safety with better returns & high liquidity,' Sagar Shinde, VP of Research at Fisdom shared with ETMutualFunds. Also Read | Flexi cap mutual funds dominate inflows for third straight month. Are investors seeking all-cap advantage? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo 'However, with FDs offering guaranteed returns, investors don't need to choose one over the other—it's entirely feasible to have a blend of FD and debt funds depending on time horizon, risk profile & liquidity preference,' he further adds. SBI has reduced the interest rates on its special fixed deposit 'Amrit Vrishti' scheme while keeping the other regular fixed deposit rates unchanged and this revised rate is effective from June 15. The rate for public under 2 years to less than 3 years has been revised to 6.7% which is the highest among all revised rates. Live Events Reserve Bank of India in its last policy meeting reduced the repo rate by another 50 basis points to 5.50% and a 100 basis point CRR cut, marking it the third consecutive rate cut in the current calendar year and the second one in the current financial year. ETMutualFunds analyzed the two-year performance of all debt mutual fund categories alongside the interest rates on fixed deposits offered by SBI, India's largest public sector bank, in the same period. Around 260 debt mutual funds outperformed the bank deposit rate of 6.7% offered by SBI over the past two years. Four schemes gave double-digit returns, of which the top three performers were from the credit risk fund category. DSP Credit Risk Fund delivered the highest return of 19.1% over the last two years, followed by HSBC Credit Risk Fund and Aditya Birla SL Credit Risk Fund, which provided 13.7% and 11.9% returns respectively during the same period. Also Read | Nifty stuck in narrow range. Here's the mutual fund move you need to make now Aditya Birla SL Medium Term Plan delivered a return of 10.4%, followed by Invesco India Credit Risk Fund and 360 ONE Dynamic Bond Fund which gave 9.3% and 9.1% respectively in the same period. Motilal Oswal Liquid Fund was the last one to offer 6.8% return in the said period. After the outperformance by debt mutual funds, the expert mentions that in the current context of a likely pause in rate cuts and a neutral policy stance, investors should consider a barbell strategy—allocating to both short and dynamic duration categories. As the short duration funds help manage reinvestment and interest rate risk for near-term needs, while dynamic bond funds offer the opportunity to benefit if yields continue to drift lower or if volatility creates short-term mispricing, Shinde believes. 'Investors should prefer funds with high-quality portfolios, moderate duration, and reasonable YTMs. Since the direction of rates may now be more data-driven, staggered entries via SIPs or STPs can help mitigate timing risk,' Shinde recommends. FD vs debt funds Now coming to the comparison between fixed deposits and debt mutual funds, fixed deposits are considered low risk investments as they offer a guaranteed return for the predetermined period whereas debt mutual funds have a slightly higher risk associated with them because of the interest rate movement. The second point of difference comes on the taxation part. The investment in tax-saving fixed deposits is exempted under Section 80 C of the Income Tax Act whereas for the debt mutual funds there is no such exemption. But both fixed deposits and debt mutual funds are classified under the same asset class. As the fixed deposits offer lower interest rates compared to debt mutual funds, Shinde advises that investors in higher tax brackets, with a 1–5-year horizon, can consider diversifying beyond FDs into mutual funds and while debt funds and FDs now have similar tax treatment, mutual funds offer added benefits like no TDS, liquidity, and potential capital gains. 'Arbitrage funds can be more efficient for holding periods of one year or more, while income-plus-arbitrage funds tend to become more tax-efficient when held for over two years,' he recommends. Also Read | HDFC Flexi Cap Fund exits IndusInd Bank and HAL, adds Swiggy in May 'However, mutual funds come with risks not present in FDs. Debt funds can face interest rate, credit, and liquidity risks, and arbitrage strategies depend on market conditions for return generation. Instead of a full switch, a blended allocation—combining FDs, debt funds, and arbitrage-oriented categories—can help investors strike the right balance between stability, flexibility, and post-tax efficiency,' he further added. We considered all debt categories such as gilt fund, long duration, medium to long duration, gilt fund - constant maturity 10 year, credit risk funds, liquid funds, money market funds, overnight funds, corporate bond fund, dynamic bond fund, floating rate bond, banking and PSU funds, medium duration, low duration, short duration funds. We excluded debt based target maturity funds. We considered regular and growth options. We calculated returns for the last two years. We calculated CAGR returns as in debt mutual funds, returns up to one year are annualised and above one year are CAGR. Note, one should not make investment or redemption decisions based on the above exercise. One should always consider risk profile, investment horizon and goal before making investment decisions. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle
Economic Times
16-06-2025
- Business
- Economic Times
SBI cuts FD rates across all tenures and savings account rate: Check latest interest rates from June 15, 2025
Getty Images State Bank of India has revised savings account interest rate and made it uniform at 2.5% per annum for all saving account balances. State Bank of India (SBI) has reduced fixed deposit (FD) interest rates by 25 basis points (bps) across all regular FD scheme tenures and savings account interest rates by up to 50 bps. The rates are effective from June 15, 2025. The move follows similar rate cuts by other major banks such as HDFC Bank and ICICI Bank in recent days, triggered by the Reserve Bank of India's decision to reduce the repo rate by 50 basis points in its monetary policy meeting on June 6, 2025. SBI latest FD rates State bank of India has reduced fixed deposit interest rate by 25 basis points (bps) on all regular FD tenures. After revision, the bank offers FD interest rates between 3.05% and 6.45% for general citizens. For senior citizens, the bank offers 3.55% and 7.05% (including SBI Wecare). Latest FD rates of Canara Bank, Axis Bank, Indian Bank, Kotak Mahindra Bank after RBI's repo rate cut Earlier, the bank offered FD interest rate between 3.3% and 6.7% for general citizens. For seniors, the bank offered FD interest rates of 3.8% to 7.30% (including SBI Wecare). SBI FD interest rates after the revision on 15.6.2025 are as follows: General Public Senior Citizen Tenors Existing Rates for Public w.e.f. 16/05/2025 Revised Rates for Public w.e.f. 15/06/2025 Existing Rates for Senior Citizen w.e.f. 16/05/2025 Revised Rates for Senior Citizen w.e.f. 15/06/2025 7 days to 45 days 3.3 3.05 3.8 3.55 46 days to 179 days 5.3 5.05 5.8 5.55 180 days to 210 days 6.05 5.8 6.55 6.3 211 days to less than 1 year 6.3 6.05 6.8 6.55 1 Year to less than 2 years 6.5 6.25 7 6.75 2 years to less than 3 years 6.7 6.45 7.2 6.95 3 years to less than 5 years 6.55 6.3 7.05 6.8 5 years and up to 10 years 6.3 6.05 7.30* 7.05* Source- SBI website After RBI's repo rate cut, ICICI Bank reduces interest rates on fixed deposits; check latest FD rates in June 2025 SBI savings account interest rate State Bank of India has revised savings account interest rate and made it uniform at 2.5% per annum for all saving account balances. The revised rates are effective from June 15, 2025. Earlier, SBI was offering a rate of 2.7% on account balances below Rs 10 crore, and 3% on balances of Rs 10 crore and above. SBI Amrit Vrishti The interest rate for the special FD scheme, Amrit Vrishti fixed deposit scheme, which has a specific tenure of 444 days, has been reduced from 6.85% to 6.60%, effective from June 15, the above scheme, Senior Citizens (aged 60 and above) and Super Senior Citizens (aged 80 and above) will continue to receive extra interest over and above this revised rate, as per the bank's existing policy for them. SBI non-callable FD rates Non-callable retail term deposit rates are applicable to FDs from Rs 1.01 crore to less than Rs 3 crore. These are fixed deposits that cannot be withdrawn before maturity. SBI's non callable FD rates are as below as on 16.6.2025 as per the bank's website: NON-CALLABLE TERM DEPOSIT RETAIL (From Rs.1.01 cr to less than Rs.3.00 cr) Tenors General Public Senior Citizen 1 Year 0.30% above Card Rate 6.55% 7.05% 2 Years 0.40% above Card Rate 6.85% 7.35%
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Business Standard
16-06-2025
- Business
- Business Standard
SBI slashes FD, savings rates after repo rate cut: Offers up to 7.05%
SBI lowers fixed deposit and savings rates after RBI's repo rate cut; investors may need to rethink strategies as returns dip across tenures New Delhi The country's largest lender, State Bank of India (SBI), has slashed interest rates on fixed deposits (FDs) across all tenures by 25 basis points (bps), and also lowered savings account rates. The new rates came into effect on June 15 following the Reserve Bank of India's repo rate cut earlier this month. Rate cut triggered by RBI's move SBI's decision aligns with the broader trend among major banks such as HDFC Bank and ICICI Bank, which also reduced deposit rates after the RBI cut the repo rate by 50 bps in its June 6 policy review. This move by the central bank aims to make borrowing cheaper and boost economic growth, but it also means lower returns for savers. SBI's FD rates in June Post the rate revision, SBI FDs will now earn from 3.05 per cent to 6.45 per cent for the general public and 3.55 per cent to 7.05 per cent for senior citizens. The interest rates vary by deposit tenure. Here's the detailed table of rates and tenures offered by the bank General Public Senior Citizen Tenors Revised Rates for Public w.e.f. 15/06/2025 Revised Rates for Senior Citizen w.e.f. 15/06/2025 7 days to 45 days 3.05 3.55 46 days to 179 days 5.05 5.55 180 days to 210 days 5.8 6.3 211 days to less than 1 year 6.05 6.55 1 Year to less than 2 years 6.25 6.75 2 years to less than 3 years 6.45 6.95 3 years to less than 5 years 6.3 6.8 5 years and up to 10 years 6.05 7.05 Source: SBI website SBI savings account rates in June In a related move, SBI has also reduced its savings account interest rate to a uniform 2.5 per cent per annum for all balances. Earlier, accounts with balances above Rs 10 crore earned 3 per cent, while those below Rs 10 crore earned 2.7 per cent. SBI special FD schemes in June The Amrit Vrishti FD scheme, which has a 444-day tenure, will now offer 6.60 per cent interest instead of the earlier 6.85 per cent. Senior citizens will continue to receive additional interest as per bank norms. SBI non-callable FD in June The lender has also adjusted rates for non-callable retail FDs (Rs 1.01 crore to less than Rs 3 crore). One-year non-callable FD now offers 6.55 per cent to general customers and 7.05 per cent to senior citizens on a one-year tenure and 6.85 per cent for general customers and 7.35 per cent for senior citizens on 2 2-year tenure What should investors do? With returns from bank deposits shrinking, the FD investors should: · Compare FD rates across banks. · Consider laddering deposits across tenures. · Explore other fixed-income options like debt mutual funds or government bonds. For risk-averse savers, SBI's revised rates remain competitive, but the declining interest trend may prompt many to reassess their savings strategy.
Business Standard
16-06-2025
- Business
- Business Standard
SBI reduces interest rates by up to 50 bps following RBI's rate cut
The country's biggest lender State Bank of India (SBI) has reduced its lending rate by 50 basis points following the Reserve Bank's policy rate cut, making loans cheaper for both existing and new borrowers. With the latest round of reduction, the Repo Linked Lending Rate (RLLR) of SBI would come down by 50 basis points to 7.75 per cent. It has also reduced the External Benchmark Based Lending Rate (EBLR) by similar basis points to 8.15 per cent from 8.65 per cent earlier. The revised rates come into effect from June 15, 2025, according to updated rate information on SBI's website. The rate reduction is in response to the June 6 RBI jumbo rate cut by 50 basis points to support growth, which hit a four-year low of 6.5 per cent in FY25. The RBI's six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent. It also cut the cash reserve ratio by 100 basis points to 3 per cent, adding Rs 2.5 lakh crore to already surplus liquidity in the banking system by December this year. Following the RBI action, most of the banks have slashed lending rate remaining will follow suit soon. Besides, SBI also cut deposit rates by 25 basis points across all maturities for fixed deposits up to Rs 3 crore. The new term deposit rates are effective from June 15. With the revision, for fixed deposits, the interest rate on 1-2 year term deposits will be lower by 25 basis points to 6.50 per cent, and deposits having two years to less than 3 years maturity will attract 6.45 per cent as against 6.70 per cent. In case of fixed deposits with maturity 3-5 years, interest rate has been reduced by 25 basis points to 6.30 per cent, while for 5-10 years by 25 basis points to 6.05 per cent. The interest rate of a specific tenor scheme of '444 days' (Amrit Vrishti) has also been revised from 6.85 per cent to 6.60 per cent, effective from June 15, 2025. Senior citizens are offered an additional 50 bps, while super senior citizens are eligible for an additional 60 basis points over the card rate.
