Explained: New SBI interest rate rules for savings account, short term deposits | Explained News, The Indian Express

Explained: New SBI interest rate rules for savings account, short term deposits | Explained News, The Indian Express

Written by Anil Sasi |New Delhi |Updated: April 30, 2019 6:59:23 pm

Explained: New SBI interest rate rules for savings account, short term deposits

On savings accounts with deposits above Rs 1 lakh, SBI will be providing interest rate to customers that is 275 basis points lower than the Reserve Bank of India's repo rate, resulting in effective rate of 3.25 per cent per annum as against the 3.5 per cent rate prevalent currently.

The SBI move will ensure that as and when RBI cuts its policy rates, there is an immediate transmission of that reduction in lower market rates. (Representational Image)

The country’s largest lender State Bank of India (SBI) will kickstart a new interest rate regime Wednesday, under which it will link its rate on savings account with a balance above Rs 1 lakh and short-term loans to the Reserve Bank of India’s (RBI) repo rate. SBI had in March announced this decision, which is effective from May 1.