SBI reduces interest rate on savings bank accounts with balance above Rs 1 lakh

New Delhi, May 1 (KNN) India’s largest public sector bank, the State Bank of India (SBI) has reduced the interest rates on savings bank accounts with balance of Rs 1 lakh or more from today (May 1, 2019).

The move to reduce interest rate on deposits of more than Rs 1 lakh comes as the State Bank of India is linking the interest rate to the Reserve Bank of India (RBI's) repo or short-term lending rate which is 6.0% at present.

According to the information available on the website of SBI, the interest rate on savings bank accounts with balance above Rs 1 lakh will be 2.75 per cent lower than the RBI's repo rate, which currently stands at 6 per cent.

This means that SBI customers with Rs 1 lakh or more in their savings account will earn an interest of 3.25 per cent.

For other savings account deposits, interest rate will continue to be set by the bank as per current RBI guidelines. This means that savings accounts with balances less than Rs 1 lakh will continue to earn 3.5% interest as per the current rate fixed for these accounts.

At present, interest rate on SBI savings account with deposits up to Rs 1 crore is 3.5 percent and deposit accounts above Rs 1 crore earn an interest of 4 percent a year.