State Bank of India (SBI) has lowered the interest on savings deposits with effect from April 15. That means your deposit in an SBI savings account will fetch a lower return once the new rates come into effect. The downward reduction in the savings deposit rate - or the interest rate applicable to savings account balance - by the country's largest lender by assets comes within two weeks after the Reserve Bank of India reduced the key lending rate by 75 basis points in an emergency move, to mitigate the economic fallout from the deadly coronavirus pandemic.
SBI savings deposits will fetch a 25-basis-point (0.25 percentage point) lower return of 2.75 per cent from April 15, according to a statement released Tuesday. SBI said there is "adequate liquidity in the system".
At present, the bank offers interest at the rate of 3 per cent on savings deposits.
On the other hand, SBI's announcement also brought good news for its borrowers, as the lender lowered the interest rates applicable to loans by 35 basis points across all tenors, effective April 10. In other words, SBI loans are set to become cheaper starting Friday.
That marked the eleventh cut in the bank's lending rates in a row.
Meanwhile, SBI has allowed its existing borrowers to defer EMIs due between March 1 and May 31 on term loans by three months, in tandem with the Reserve Bank of India's COVID-19 regulatory package. (Also Read: RBI Eases Loan Repayment Rules. How It Helps You)
By next week, the government is expected to lift its 21-day lockdown that has rattled businesses and brought economic activity to a grinding halt.