New Delhi, Sept. 11 -- State Bank of India or SBI cut interest rate on retail fixed deposit or FDs by 20 to 25 basis points, with effect from 10th September, the second revision in about two weeks. The interest rate on term deposits at Post Offices, which are revised every quarter, are due for revision this month-end. Many banks have been lowering their FD rates amid surplus liquidity and sharp cut in RBI repo rates. Analysts say that the interest rates on post office term deposits and other small savings schemes are also set to come down amid falling interest rate scenario.

Post office term deposit schemes are similar to bank FDs. Post offices offer term deposits ranging from one year to five years. Like bank FDs, investors earn a guara...