SBI Cuts Savings Account Interest Rate, Removes Minimum Balance Requirement
State Bank of India has cut the interest rate on all savings bank accounts to 3 percent and also waived minimum balance requirement.
Earlier in the day, SBI reduced its fixed deposit rates and marginal cost of funds-based lending rates for various tenors.
The country's largest lender has 44.51 crore savings bank accounts.
Keeping in mind the "Customers First" approach, the bank said it has also waived SMS charges, which will bring significant relief to all the customers.
"Bank has also rationalised interest rate on savings bank accounts to a flat 3% p.a. for all buckets," it said in a statement.
Currently, savings deposits of up to Rs 1 lakh attract interest rate of 3.25 percent per annum and 3 percent for deposits above Rs 1 lakh. SBI customers, at present, need to maintain average minimum balance of Rs 3,000, Rs 2,000 and Rs 1,000 in metro, semi-urban and rural areas, respectively. The bank used to levy a penalty of Rs 5 to Rs 15 plus taxes on non-maintenance of average minimum balance.
Private sector lender ICICI Bank Ltd. on its website said the savings account interest rate is 3.5 percent for end of day account balance of below Rs 50 lakh, and 4 percent for balance of Rs 50 lakh and above. Several private sector lenders have minimum balance requirement of at least Rs 10,000.