NEW DELHI: Savings bank account holders in SBI having more than Rs 1 lakh balance will earn a quarter percentage point less interest from Wednesday with the country’s largest lender linking the interest rate to the RBI’s repo or short-term lending rate.
However, SBI savings bank account holders with less than Rs 1 lakh balance will continue to get 3.5 per cent interest on deposits.
According to the information provided on the website of State Bank of India (SBI), the interest rate on savings bank accounts with balances above Rs 1 lakh will be 2.75 per cent below the RBI’s repo rate, which currently stands at 6 per cent.
Hence, the SBI will give 3.25 per cent interest on savings bank deposits with a balance exceeding Rs 1 lakh. At present, the interest rate is 3.5 per cent. The interest is paid quarterly. (AGENCIES)