SBI Savings Bank Account Holders With Rs 1 Lakh Plus Balance To Earn Lesser Interest From Today
The interest rate on savings bank account may move up or down depending on what stance the Reserve Bank of India takes on stance.
SBI customers with Rs 1 lakh or more in their savings account will earn an interest of 3.25%.
State Bank of India, the country’s largest lender, has reduced interest rate on savings bank accounts with balance of Rs 1 lakh or more from today.
The State Bank of India customers with Rs 1 lakh or more in their savings account will earn an interest of 3.25 per cent, State Bank of India noted on its website www.sbi.co.in.
Meanwhile, customers with less than Rs 1 lakh in their savings bank accounts will continue to earn interest at the rate of 3.50 per cent, the Mumbai-based lender said.
The move to reduce interest rate on deposits of more than Rs 1 lakh comes as the State Bank of India is linking the interest rate to the RBI’s repo or short-term lending rate.
According to the information provided on the website of State Bank of India (SBI), the interest rate on savings bank accounts with balance above Rs 1 lakh will be 2.75 per cent lower than the RBI’s repo rate, which currently stands at 6 per cent.
The interest rate on savings bank account may move up or down depending on what stance the Reserve Bank of India takes on bi-monthly monetary policy meeting.
The SBI was earlier paying interest of 3.5 per cent for savings bank deposits up to Rs 1 crore and 4 per cent for deposits above Rs 1 crore.
In March, the State Bank of India had announced that it will be linking savings deposits rates and short-term loans to the RBI’s repo rate from May 1 with an aim to ensure faster monetary policy transmission.
