The country's largest lender State Bank of India (SBI) has reduced interest rates on retail term deposits by 15 basis points on certain tenures, effective January 10.

The reduction in interest rates are for long-term fixed deposits below Rs 2 crore.

The lender has slashed interest rates on fixed deposits maturing in one-year to 10 year to 6.10 per cent from 6.25 per cent, according to the information on the bank’s website.

For fixed deposits maturing in seven days to 45 days and 46 days to 179 days, the bank is offering an interest rate of 4.50 per cent and 5.50 per cent, respectively.

The term deposits maturing in 180 days to less than one-year are fetching an interest rate of 5.80 per cent.

The bank offers 50 basis points higher interest rate to senior citizens.

With this reduction, fixed deposits maturing in one-year to 10 years will give interest at the rate of 6.60 per cent to senior citizens.

Last month, the bank cut its external benchmark based rate (EBR) by 25 basis points to 7.80 per cent per annum from 8.05 per cent per annum.

With it, the bank's home loan rate also got reduced to 7.90 per cent from 8.15 per cent.

SBI had introduced floating rate home loans from July 1, 2019.

The lender had adopted repo rate as the external benchmark for all floating rate loans for MSME, housing and retail loans from October 1, 2019.