SBI cuts one-year FD rates; OBC,IDFC offers you more

After cheering its home loan borrowers by reducing base rate, country's largest lender State Bank of India (SBI) made many of its customers unhappy when it reduced 1-year fixed deposit rates by 0.25 percent. The rate now stands at 6.5 from 6.75 earlier.

In August, SBI reduced interest rate on savings deposits too. It brought the rate below 4 percent for the first time. The interest on saving account now stands at 3.5 percent on deposits up to Rs 1 crore.

However, most of the public sector banks are still offering better returns than SBI. Public sector bank like Oriental Bank of Commerce (OBC) offers its customers 6.85% p.a on one-year fixed deposit. Private sector banks like ICICI also offer a bit more at 6.75%. Then there are banks like Bandhan, IDFC and RBL that are offering between 7 and 7.25% for locking money with them for the same time-frame..

SBI's move is likely to be emulated by other banks. Before it is done, you can lock-in the rates with your bank. Here's what some private and public sector banks are offering on their 1-year FDs.

The rates are for 1-year FD