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Business News/ Industry / Banking/  SBI cuts interest rate on savings bank accounts

NEW DELHI : The State Bank of India, country's largest lender, today rationalised interest rate on all savings bank (SB) accounts to a flat 3%, a move affecting 44.51 crore account holders. Currently, the interest rate on SBI saving accounts is 3.25% for deposits up to 1 lakh, and 3% for deposits above 1 lakh.

"Bank has rationalised interest rate on savings bank Account to a flat 3 % pa for all buckets," SBI said.

The bank also today waived the requirement for maintaining minimum balance in savings bank accounts.

Keeping in mind the 'Customers First' approach, the bank further said it has also waived SMS charges, which will bring significant relief to all the customers.

"The charges on maintaining average monthly balance are now waived off on all 44.51 crore SBI savings bank accounts," it said.

Currently, SBI customers need to maintain average monthly balance of 3,000, 2,000 and 1,000 in metro, semi urban and rural areas, respectively.

The bank used to levy a penalty of 5 to 15 plus taxes on non-maintenance of AMB.

SBI today also reduced its fixed deposit rates for certain tenors and marginal cost of funds-based lending rates (MCLR) across various tenors.

Making it a second reduction in a month, the public sector bank has reduced retail term deposits (less than 2 crore) by 10 to 50 basis points for a few tenors.

Further, the one-year marginal cost of fund-based lending rate (MCLR) of SBI has been reduced by 10 basis points to 7.75% from 7.85% earlier, a move which will make home and auto loans cheaper.

This is 10th consecutive cut in MCLR by the bank in the current fiscal.

Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45 per cent each. Three-month MCLR has been revised to 7.50% from 7.65%.

SBI has reduced its one-year MCLR by 10 basis points to 7.75%, from 7.85% earlier. This is 10th consecutive cut in MCLR by the bank in the current fiscal.

The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95% and 8.05%, respectively.

The rates became effective from March 10.

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Updated: 11 Mar 2020, 05:47 PM IST
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