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Sunday, July 30, 2017

State Bank Of India( SBI ) Cuts Interest Rate On Savings Account Deposits

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SBI has introduced a new two-tier savings account interest rate system from today  Monday July 31, 2017

On balances below Rs. 1 crore, the interest rate has been brought down to 3.5 per cent from 4 per cent. On balances above Rs. 1 crore, the bank will continue to offer 4 per cent.

 "The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on savings bank deposits," India's biggest bank said in a statement

Further, the bank said that it had cut the MCLR (marginal cost of funds based lending rate) or its key lending rate, by 90 basis points effective January 1, 2017, on the strength of large inflows in savings and current accounts after demonetisation. And there has been signification outflow of CASA (current account and savings account) deposits or low-cost deposits since then, it added.

The revision in savings bank rate would enable the bank to maintain MCLR or key lending rate at the existing rates, benefitting a large segment of retail borrowers in SME, agriculture and affordable housing segments.

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