New Delhi: If you are a customer of State Bank of India (SBI) and you have a savings bank account in the bank, then here comes a bad news for you! Come November 1, saving bank account holders of the State Bank of India will get 25bps less interest rate on their savings. The decision from the SBI has come after considering that the bank has enough liquidity.
The State Bank of India SBI in a notification has announced that it is going to change the interest rates from November 1, 2019, for its savings account holders and other depositors. As per the new order, SBI savings account holders will get 3.25 per cent interest instead of existing 3.5 per cent.
“In view of the adequate liquidity in the system, State Bank of India announced a revision in the interest rate on Savings Bank Deposits (with balances up to Rs 1 lakh) from 3.50% to 3.25% w.e.f. 1st November 2019. Bank also slashes its Retail TD and Bulk TD interest rates by 10 bps and 30 bps respectively for ‘1 year to less than 2 years’ tenor w.e.f. 10th October 2019,” the SBI said in a release.
Prior to this, the SBI had cut interest rates on fixed deposits after the RBI had cut the repo rate. Now, thr repo rate stands at 5.15 per cent. The SBI also earlier had cut the fixed deposit rates by 0.10 per cent to 6.4 per cent for one to two years deposits. Earlier, it was 6.5 per cent. To know the details about the interest rate, bank customers should visit the SBI’s website sbi.co.in.
As per the new order, a number of changes have been made to the accounts with deposits over Rs 2 crore. The bank has also cut interest rates on fixed deposits by 0.30 per cent for a time of one to two years. Now, these individuals will get 6 per cent interest against 6.3 per cent for the same period fixed deposits.
The decision from the SBI has come after the RBI asked the banks to link their loan rates to one of the parameters set by the central bank, one of which include repo rate. Following the RBI order, number banks have brought down the rate of interest on various deposit schemes. Some of the banks have also brought down the lending rates after the RBI’s rate cut.
Earlier last month, the SBI had slashed its MCLR (Marginal Cost of Funds based Lending Rate) on loans across all tenors by 10 basis points. Besides, it had also reduced interest rates on term deposits across all maturities by up to 25 basis points.
The bank had also reduced its penalty for not maintaining the monthly account balance by 80 per cent that means, if a person’s account balance is less than 75 per cent of the stipulated amount, then a penalty of Rs 80 plus GST will be deducted. Similarly, if the balance is between 50 to 75 per cent of the stipulated amount, Rs 12 plus GST will be deducted. If the balance is less than 50 per cent of the required amount Rs 10 plus GST will be deducted.