SBI cuts interest rate of savings bank deposit
Posted on: 31/Jul/2017 3:05:22 PM
On Monday, State Bank of India, the largest lender in the country has cut interest rates of savings bank deposit by 0.5 percent.
The revised rate of interest on savings bank deposits will be effective from 31st July. The bank has further clarified that the interest rate for bank balance of up to Rs 1 crore will be reduced from 4 percent to 3.5 percent.
In case of savings deposit lesser than Rs 1 crore, the rate of interest shall be brought down to 4 percent per annum.
It is to be noted that all the banks were inundated with liquidity upon demonetization by Prime Minister Narendra Modi.
Giving a push to digital banking, the charge towards real-time Gross Settlement and National Electronic Fund Transfer were cut down by up to 75 percent.
These two transactions called NEFT and RTGS are electronic funds transfer methods for transferring money between bank accounts across the country.
State Bank of India had also dropped the rates of 1 to 2 years deposit by around 40 base points. For 1 year deposits made with the SBI, the interest rate users get is 6.75 percent and not the earlier rate of 6.90 percent.
