State Bank of India or SBI, the country's largest lender, has announced a reduction in interest rates on deposits in retail savings accounts. The new rates - to be effective from November 1, 2019 - follows a reduction in the repo rate - the key interest rate at which Reserve Bank Of India (RBI) lends short-term funds to commercial banks. Interest rates on savings accounts with balances up to Rs 1 lakh would be lowered by 25 basis points (bps) or 0.25 percentage points, according to SBI's statement issued earlier this month. SBI said the revision in interest rates is "in view of the adequate liquidity in the system"(Also read: SBI Pays These Interest Rates On Fixed Deposits Up To Rs 2 Crore)
On savings deposits, SBI has announced a revision from 3.50 per cent to 3.25 per cent on balances up to Rs 1 lakh from November 1, 2019, according to its statement.
Here are the revised SBI's savings account interest rates, effective from November 1:
|Savings Bank deposit slabs||Rate of Interest|
|Saving deposit accounts with balances upto Rs 1 lakh||3.25 per cent (To be effective from November 1)|
|Saving dposit accounts with balances above Rs 1 lakh|
|No Change - Rate continued at 3.00 per cent (2.75 per cent below RBI's Repo Rate, with a minimum of 3.00 per cent for the entire balance)|
In May this year, SBI had linked its large savings deposits rates to the RBI's repo rate, offering an interest rate of 275 basis points lower the repo rate on savings account deposits with balance of over Rs 1 lakh.
The Reserve Bank of India has so far this year reduced the repo rate by a total 135 basis points in five consecutive bi-monthly reviews. The central bank will release its fifth bi-monthly policy statement of the current financial year on December 5