State Bank of India (SBI), rationalised interest rate on all savings bank accounts to a flat 2.75%, a move affecting 44.51 crore account holders. Currently, the interest rate on SBI saving accounts is 3% for deposits up to ₹1 lakh, and deposits above ₹1 lakh. The new rate will come into effect from 15 April 2020.
"In view of adequate liquidity in the system, SBI realigns its interest rates on Savings Bank Deposits, with effect from 15th April 2020. For balances upto ₹1 lakh: 25 basis points (bps) reduced from 3% to 2.75%. For balances above Rs. 1 lakh: 25 bps reduced from 3% to 2.75%." SBI said.
Last month, the country's largest lender had cut the interest rate on all savings bank accounts to a flat 3%.
The bank has also reduced the marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors. After the latest revision, the one-year MCLR comes down to 7.40 per cent per annum from 7.75 per cent per with effect from 10 April 2020, it said in the statement."Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around ₹24.00 per 1 lakh on a 30 year loan," SBI said
In March, SBI had slashed the interest rate on fixed deposits (FDs) by 20-50 bps across tenors. These interest rates were applicable effect 28 March 2020. That was the second rate cut in a month. Earlier the bank had cut interest rates on FDs on 10 March. After the latest revision, SBI FDs between 7 days to 45 days will now fetch 3.5%. Term deposits between 46 days to 179 days will give 4.5%. FDs of 180 days to less than one year will fetch 5%. Deposits with maturity between 1 year and up to 10 years will now fetch 5.7%. SBI offers senior citizens’ an additional 50 basis point interest rate across all tenors. After today's revision, senior citizens will get 4% to 6% on FDs maturing in 7 days to 10 years.