SBI will keep the interest rate of Savings account unchanged

The largest bank of the state bank of India has decided to not reduce its interest which provided on the savings accounts. This is good news for all the savings account holders of the State bank of India. However, the bank has also declared rate cut for fixed deposits which would disappoint many of the customers of SBI.

The reduction in the interest rate on fixed deposits would take effect from 26 August 2019. For saving account holders other banks were cutting the rates to 2.65% on above 1 lakh savings, but SBI decided to keep the existing rate for its customers. So a saving account holder having savings above 1 lakh would be enjoying 3% interest rates.

The SBI account holders who have balance less than 1 lakh would have 3.5% interest rate which is same as before. In this august, RBI has cut down its repo rate by 35 bps which is 5.75% to 5.40%.

For Bank FD’s the rates will get reduced by 10bps to 50bps tenures for retail customers. For bulk depositors the rates will be 30bps and 70bps.

In a press statement SBI mentioned “In view of the falling interest rate scenario and surplus liquidity, SBI realigns its interest rate on Term Deposits w.e.f. 26th August 2019,”