Saving bank holders will get 3.25 per cent interest instead of 3.5 per cent.
State Bank of India office building in downtown New Delhi India. (Photo: iStock)
India’s largest public sector bank, State Bank of India or SBI is going to cut interest rates on deposits in saving bank accounts, with effect from November 01.
The interest rates on saving accounts with a balance up to Rs 1 lakh will be cut by 25 basis points (bps) or 0.25 per cent point. Therefore, saving bank holders will get 3.25 per cent interest instead of 3.5 per cent.
The deduction in interest rates comes as the bank has enough liquidity.
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On the other hand, interest rates on Fixed Deposits were slashed by 0.10 per cent. Now the rates will be 6.4 per cent instead of 6.5 per cent, as the RBI reduced repo rate by 25 bps to 5.15 per cent.
Customers having over 2 crore deposits will get 6 per cent. RBI cut the repo rate by 30 bps bringing 6.3 per cent to 6 per cent.
People seeking for in-depth details of the rate cuts can visit SBI’s site.
(With input from agencies)
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