New Delhi: SBI (State Bank of India) has cut interest rate on savings bank accounts to 3.5 per cent from 4 per cent on balance of Rs 1 crore and below, SBI informed on Monday.
About 90 per cent of SBI’s savings bank accounts have balances under Rs 1 crore.
“The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on savings bank deposits,” SBI said in a statement.
The change in the structure is effective immediately and also marks the introduction of a new two-tier savings account interest rate system as balance of over Rs 1 crore will continue to attract the earlier 4 per cent rate.
SBI also informed the bourses that it had cut the MCLR (marginal cost of funds based lending rate) or its key lending rate, by 90 basis points effective January 1, 2017, on the strength of large inflows in savings and current accounts after demonetisation.