India’s largest lender State Bank of India (SBI) has cut the saving account interest rate on deposit less than Rs one Crore by 0.50% to 3.5%. Now any of the saving account holder of SBI will be getting only 3.5% interest on their saving account deposit, existing Rate of interest on saving bank was 4%. State Bank of India has also come up with the idea of two tier interest rate scheme for saving account holder with banks. SBI has reduce the rate of interest on amount less than Rs one crore siting the decline in the rate of inflation and high real interest rates are primary considerations.
State Bank of India (SBI) has introduced a two-tier interest rate structure on savings bank deposits. With effect from July 2017, a savings bank balance of over Rs 1 crore will earn an interest rate of 4% per annum (p.a.), while the ones with Rs 1 crore or less will earn an interest rate of Rs 3.5% p.a.
Savings bank deposits with SBI since June 2011, as with most other banks, earned an interest of 4%. For SBI, around 90% of the deposits came under less than Rs 1 crore category.