State Bank of India [SBI] today slashed the interest rate on short-term fixed deposits between 7-179 days from 7.5 per cent to 7.  This new rate would be effective from July 18, said SBI in a statement. The interest rate on term deposits between 7-60 days has been reduced by 0.25 per cent to 6.25 per cent while for 61 days to less than one year, it has been reduced to 6.75 per cent from the existing 7 per cent. Soon after this announcement SBI stocks gained by 4.42 percent.