Must Read:

  • SBI reduces savings account interest Rate to 3% per annum for all buckets.
  • SBI waives minimum balance requirement for all savings accounts
  • The penalty for non-maintenance of monthly balance is also waived off
  • SMS charges are also waived off by the bank on a quarterly basis
  • SBI Cuts MCLR to 15 basis Points-Making Home and Auto Loans Cheaper
  • SBI reduces FD interest rates 

India’s largest lender, State Bank of India has slashed its interest rates on a savings account to 3% per annum for all buckets. Currently, SBI savings accounts interest rate stands at 3.25% per annum for deposits up to Rs.1 lakh and 3% per annum for deposits above Rs.1 lakh respectively. 

“This announcement will bring in more smiles and delight to our valuable customers. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI,” chairman Rajnish Kumar said in a statement.


SBI Waives Minimum Balance Requirement for Savings Account

Moreover, the epic bank has also decided to waive off the requirement of holding the average monthly balance for savings accounts. Yes, from now onwards, SBI savings account holders will enjoy the zero minimum balance facility in their savings accounts. 

At present, SBI savings bank account customers need to maintain an average monthly balance of Rs 3,000, Rs 2,000 and Rs 1,000 in Metro, Semi-Urban and Rural areas, respectively. Further, the bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of monthly balance, which is also waived off. Apart from this, SMS charges are also waived off by the bank on a quarterly basis.  Well, this announcement will bring a smile on the faces of 44.51 crore SBI account holders. 

The Finance Minister,  Nirmala Sitharaman also said in a tweet that “The decision by @TheOfficialSBI to remove minimum balance requirements in its savings accounts will immensely help middle class and poor and improve ease of living.”


SBI Cuts MCLR to 15 basis Points-Making Home and Auto Loans Cheaper

Earlier in the day, SBI had also announced to cut its Marginal Cost of Fund-based Lending Rate(MCLR) by upto 15 basis points across various tenors, effective from March 10, 2020. This reduced MCLR, will make home and auto loans affordable, which will bring a cheer on new and existing loan borrowers. 

In an announcement, SBI has mentioned to lowering its 1-year MCLR by 10 basis points to 7.75% , from 7.85% earlier. Well, this is the 10th consecutive cut in MCLR by SBI in the current fiscal year.   

SBI Reduces FD Interest Rates 

Moreover, SBI also cuts interest rates on fixed deposits for second-time 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. The revised FD rates came into effect from 10 March,2020.