Starting today, the interest rates on savings account deposits with State Bank of India (SBI) will fetch lower interest rates. India's biggest bank has reduced the interest rate on its savings account for balances below ₹1 lakh to 3.25% from 3.5% from November 1. SBI had also cut interest rates of fixed deposits or FDs last month. SBI, the largest commercial bank in terms of assets, deposits, branches, customers and employees, has a deposit base of over ₹30 lakh crore.
Five things to know about latest SBI interest rates
1) SBI has trimmed the interest rates on savings bank accounts up to ₹1 lakh by 25 basis points. SBI savings accounts will fetch an interest rate of 3.25% instead of 3.5%. India's largest public sector bank has attributed "adequate liquidity in the system" for the interest rate cut.
2) The interest rate on SBI savings bank deposits with above ₹1 lakh will remain unchanged at 3%.
3) Last month, SBI has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points across all tenors to extend benefits to all customers in festive season. The one year MCLR reduced to 8.05% from 8.15% with effect from October 10.
4) SBI latest FD interest rates (below ₹2 crore) for general public effective 10 October
7 days to 45 days-4.50%
46 days to 179 days-5.50%
180 days to 210 days-5.80%
211 days to less than 1 year-5.8%
1 year to less than 2 year-6.4%
2 years to less than 3 years-6.25%
3 years to less than 5 years-6.25%
5 years and up to 10 years-6.25%
5) SBI has also slashed the interest rates on bulk term deposits by 30 basis points for tenure of one to two years. Accounts with deposits of over ₹2 crore now fetches an interest rate of 6% compared to the earlier rate of 6.3%.