SBI cuts savings account interest rate

State Bank of India (SBI), the largest lender, on March 11 cut the interest rate on all savings bank accounts to 3%.

Currently, for deposits up to Rs 1 lakh in savings accounts with SBI, the interest rate is 3.25%. An interest rate of 3% is applicable for deposits above Rs 1 lakh.

The bank also waived off the requirement of maintaining an average monthly minimum balance (AMB) in its savings accounts. These moves will affect all 44.51 crore savings account holders of the SBI.

At present, a penalty of Rs 5 to Rs 15 plus taxes is levied by the bank on non-maintenance of AMB.

Keeping in mind the ‘Customers First’ approach, the bank further said it has also waived SMS charges, which will bring significant relief to all the customers.

SBI today also reduced its fixed deposit rates of certain tenors and marginal cost of funds-based lending rates (MCLR) across various tenors.

Making it a second reduction in a month, the public sector bank has reduced retail term deposits (less than Rs 2 crore) by 10 to 50 basis points for a few tenors.

Further, the one-year marginal cost of MCLR of SBI has been reduced by 10 basis points to 7.75% from 7.85% earlier, a move which will make home and auto loans cheaper.

This is 10th consecutive cut in MCLR by the bank in the current fiscal.

Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45% each. Three-month MCLR has been revised to 7.50% from 7.65%.

SBI has reduced its one-year MCLR by 10 basis points to 7.75%, from 7.85% earlier. The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95% and 8.05%, respectively.

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