SBI cuts savings rate to just 3.25% - Should you switch banks?
Savings account interest up to ₹10,000 is tax free under Section 80 TTA of the Income Tax Act, 1961
You can safely earn higher interest by shifting to another bank without necessarily paying higher tax
The State Bank of India (SBI) has reduced the interest rate on its savings account for balances below ₹1 lakh to a historic low of just 3.25%. As a banking customer, you can earn a higher interest rate by switching to another bank. Unlike fixed deposits, there is no lock-in for savings accounts.