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SBI Slashes Savings Account Interest Rates by 0.5%
August 02, 2017
In a setback to the depositors, India’s largest lender State Bank of India today slashed the savings account interest rates through a new two-tier savings account system.
As per the new system, savings account balances below Rs. 1 crore will attract a lower interest rate of 3.5% from the current 4%. However, balances above Rs. 1 crore will continue to attract a 4% interest rate.
While the reduction in the interest rates will greatly improve the lender’s margins, the depositors are unlikely to welcome this move. Nevertheless, analysts believe that other lender may follow SBI’s move and cut their interest rates as well.
