The surplus cash deposits have struck its first target--small savers and depositors. The State Bank of India has cut its deposit rates for different tenures by 1.25-1.9 per cent, effectively reducing the 5-year deposit to less than 7 per cent. The impact of the cut of 0.10 per cent in popular small savings instruments--PPF, Sukanya Samridhi Scheme and the Senior Citizens schemes--have brought their interest levels to about 8 per cent and lower in some cases like the Kisan Vikas Patra (KVP), which is 7.7 per cent at the moment.