Public sector lender State Bank of India (SBI) has reduced the interest rate on savings accounts by 5 basis points. The new rate applicable on saving bank deposits is now 2.7 per cent effective from October 15.
The State Bank of India said that the new saving rates are applicable on balances of less than Rs 10 crore. The bank earlier used to offer 2.75 per cent per annum interest on these deposits.
The bank, however, increased the deposit rates to 3 per cent per annum from 2.75 per cent earlier on saving account balances of Rs 10 crore and above. The State Bank of India has over 40 million customers and a majority of these customers will be affected due to the reduction in interest rates on saving deposits of less than 10 crores.
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However, it's noteworthy to mention that the SBI has recently hiked interest rates in fixed deposits across tenors.
The SBI increased the interest rates on fixed deposits (FDs) below Rs 2 crore by up to 20 basis points on October 15. The new rates are effective from October 15, 2022, according to the SBI website. The bank has hiked interest rates for all tenures on fixed deposits. Customers can get interest rates between 3% to 5.85%. Besides, senior citizens will get additional interest over the normal interest rate.
The bank now offers an interest rate 5.8% on deposits with a maturity of three years to less than five years while senior citizens will earn an interest of 6.3%. The bank raised the interest rate for loans with a maturity of five years or more to 5.85 per cent from 5.65 per cent for the general public and to 6.65 per cent from 6.45 per cent for senior citizens.
