SBI to launch floating rate term deposit product

SBI has decided to launch a floating rate term deposit product with returns linked to base rate.The floating rate term deposit is being launched to correct interest rate mismatches arising from floating rate assets being financed with fixed rate liabilities, said Mr.S.S.Ranjan,DMD,SBI.
The scheme will be introduced from September 6, a 1 year floating rate deposit will earn interest which is 50 basis points below the base rate(7.50%)ie, 7%.A 3 year deposit will fetch a return of 7.25% and a 5 year deposit will carry interest of 7.50% (BL17082010)