SBI cuts savings account rate by 0.5% on balance up to Rs 1 crore

New Delhi, July 31 : Country’s largest lender State Bank of India has slashed interest on savings account deposits by 50 basis points to 3.5 per cent on balance up to Rs 1 crore, ahead of RBI’s policy review this week.
However, the bank will continue to offer 4 per cent interest on savings account balance of Rs 1 crore and above. “The bank is introducing two-tier saving bank interest rate with effect from July 31. While balance above Rs 1 crore will continue to earn interest at 4 per cent per annum, interest at 3.5 per cent will be offered on balance of Rs 1 crore and below,” the SBI said in a regulatory filing.
It said: “The decline in rate of inflation and high real interest rates are primary considerations warranting a revision in rates of interest on savings bank deposits.”