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SBI reduces interest rate on savings account from 1st November
India’s biggest public bank, State Bank of India has lowered its interest rate on savings account to 3.25% which earlier was set at 3.5%. The changed rate has come into effect since November 1st 2019. The reduced interest rate is meant for the account balances less than Rs. 1 lakh. Last month, SBI had cut interest rates for its Fixed Deposits. State Bank of India is the largest commercial bank in regards of assets, branches, customers and deposits, also having a total deposit of more than Rs. 30 lakh crore.
Five points to know about latest SBI interest rates:
1. The bank has reduced its interest rates on savings accounts which have balances less than Rs. 1 lakh. The new rate is lowered 25% basis points and has now been set at 3.25%. SBI has asserted that it has done it to maintain the adequate liquidity in the system.
2. Though the existing savings account with their balance more than Rs. 1 lakh will remain unaltered at 3%.
3. In the previous month, State Bank of India had reduced its MCLR (Marginal Cost of Funds Based Lending Rate by 10 basis points. It was done to benefit the customers in the festive season just went by.
4. SBIs latest/changed interest rates (above 2 crore, if any) are enumerated below:
- 7 days – 45 days – 4.50%
- 46 days – 179 days – 5.50%
- 180 days – 210 days – 5.80%
- 211 days – less than 1 year – 5.8%
- 1 year – less than 2 years – 6.4%
- 2 years – less than 3 years – 6.25%
- 3 years – less than 5 years – 6.25%
- 5 years – till 10 years – 6.25%
5. On bulk term deposits, the bank has dropped the interest rates by 30 basis points for the tenure of 1-2 years. As a result, accounts with balance above Rs. 2 crore will now get an interest at 6% as compared to the previous rate of 6.3%.