The country's largest lender, State Bank of India today slashed benchmark lending rate by 15 basis points and introduced Special Deposit Scheme for senior citizens with higher interest rate. With that, the marginal cost of funds based lending rate comes down to 7.25 per cent, from 7.40 per cent with effect from 10th of May.

But, to safeguard the interests of senior citizens, the bank has introduced a new product 'SBI Wecare Deposit' in the retail term deposit segment. Under this new product, an additional 30 basis points premium will be payable for senior citizen's retail term deposits with Five Years and above tenure only. This scheme would be open until 30th of September.

But, SBI slashed its interest rates on retail term deposits by 20 basis points for up to 3 Years tenure, effective from 12th of May.