Fixed deposit investors likely to feel the pinch after SBI cuts rates

The SBI has cut deposit rates by 5-75 basis points across tenures. Shorter-tenure deposits have seen a higher quantum of cut than longer deposits. 

On an investment of Rs 1 lakh made for 45 days, a person would have earned an interest income of Rs 709 earlier and will earn Rs 616 now, a loss of Rs 93. On the same amount invested for 10 years, he will earn Rs 187,714 now, a reduction of Rs 1,770. Fixed deposit investors will feel the pinch and will need to align their expectations to this reality. Experts said conservative investors, who wish