New Delhi: In a move that might affect over 44.51 crore account holders across the country, the State Bank of India on Wednesday rationalised interest rate on all savings bank (SB) accounts to a flat 3 per cent. “Bank has also rationalised interest rate on SB Account to a flat 3 % per annum for all buckets,” the SBI said in a statement. Also Read - SBI Cuts Fixed Deposit, Lending Rates
In another move, the SBI also waived the requirement for maintaining minimum balance in SB accounts. Also Read - Yes Bank Crisis: Recovery Plan Almost Ready, no Plan to Merge it With SBI, Says Report
Bringing significant relief to all the customers, the bank said it is keeping in mind the ‘Customers First’ approach and waived SMS charges for customers. Also Read - Yes Bank Restructuring: Due Diligence Underway, Will Get Back to RBI on Monday: SBI
At present, the interest rate on SB accounts is 3.25 per cent for deposits up to Rs 1 lakh, and 3 per cent for deposits above Rs 1 lakh.
The bank also decided to waive the maintenance of Average Monthly Balance (AMB) for all SB accounts.
“The charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts,” the bank further said in the statement.
As per updates from the SBI, customers in the bank need to maintain AMB of Rs 3,000, Rs 2,000 and Rs 1,000 in metro, semi urban and rural areas, respectively. Earlier, the bank used to impose a penalty of Rs 5 to Rs 15 plus taxes on non-maintenance of AMB in accounts.