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Here Are Latest Savings Deposit Interest Rates Offered By SBI

Here Are Latest Savings Deposit Interest Rates Offered By SBI

State Bank of India or SBI, the country's largest lender, has reduced its interest rate on deposits in retail savings accounts by 25 basis points (bps) or 0.25 percentage points across select slab. The new rate, effective from Friday, 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. SBI's savings rate now stands at 3.25 per cent for balances up to Rs 1 lakh, from 3.50 per cent earlier, according to SBI's statement. SBI said the revision in interest rates is "in view of the adequate liquidity in the system".

Here are revised SBI's saving deposits interest rates, effective from November 1:

Savings Bank deposit slabsRate of Interest
Saving deposit accounts with balances upto Rs 1 lakh3.25 per cent
Saving dposit accounts with balances above Rs 1 lakh
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)

(Source: sbi.co.in)

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 or 2.75 per cent lower than repo rate on savings account deposits with balance of over Rs 1 lakh. 

Last month, the RBI lowered the repo rate by 0.25 percentage point to 5.15 per cent, marking the fifth straight bi-monthly reduction in the key interest rate so far this year. The RBI has cumulatively lowered the interest rate by 135 basis points this year.

In October, SBI had also reduced fixed deposit (FD) interest rates by 10 basis points (or 0.10 percentage point) across a select tenor in the retail segment. In bulk segment, SBI FD interest rates were reduced by 30 basis points (or 0.30 percentage point).

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