SBI savings deposit account to obtain lower returns


New Delhi

The country's largest lender State Bank of India (SBI) has lowered the interest on savings deposit account with effect from today. So, since Wednesday, your deposit in an SBI savings account will fetch a lower return. SBI savings deposit will fetch a 25 basis points (bps) lower return of 2.75% effective today, according to a statement released by the bank. Till now, the bank was offering interest at the rate of 3% on savings deposits. In view of adequate liquidity in the system, SBI realigned its interest rates on Savings Bank Deposits, with effect from 15 April 2020, SBI said in a statement.

The bank has also reduced the marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors. After the latest revision, the one-year MCLR comes down to 7.40 percent per annum from 7.75 percent per with effect from 10 April 2020, it said in the statement.

On 11 March, SBI had lowered its savings bank interest rate to 3% for all customers. Earlier, it used to offer 3.25% on balances of up to ₹1 lakh, and 3% on above ₹1 lakh.

Last month, it had also waived off maintenance of average monthly balance (AMB) for all 44.51 crore savings bank accounts. SBI had also waived of SMS charges.

SBI is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country. As of December 31, 2019, the bank has a deposit base of over Rs. 31 lakh crore with 21,959 branches in India.

SBI savings account interest rate with effect from 15 April
SB deposit accounts with balances up to ₹1 lakh - 2.75% p.a.
SB deposit accounts with balances above ₹1 lakh - 2.75% p.a.

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