SBI savings account holders to earn lower interest from Nov 1

New Delhi, Nov 01: State Bank of India is set to slash interest rates on deposits in saving bank accounts, with effect from November 1.

Earlier this month, SBI announced that it would lower interest rates on savings accounts with balance less than Rs 1 lakh to 3.25 percent from the current 3.50 percent.

SBI has kept the interest rate on saving bank accounts with balance above Rs 1 lakh unchanged at 3 percent.

The new rates - to be effective from November 1, 2019 - follows a reduction in the repo rate - the key interest rate at which Reserve Bank Of India (RBI) lends short-term funds to commercial banks. The deduction in interest rates comes as the bank has enough liquidity.

Meanwhile, interest rates on Fixed Deposits were slashed by 0.10 per cent. Now the rates will be 6.4 per cent instead of 6.5 per cent, as the RBI reduced repo rate by 25 bps to 5.15 per cent.

Customers having over 2 crore deposits will get 6 per cent. RBI cut the repo rate by 30 bps bringing 6.3 per cent to 6 per cent.