After it reduced its fixed deposit rates for certain tenors and marginal cost of funds-based lending rates (MCLR) across various tenors, now, State Bank of India (SBI) does away with minimum balance requirement in savings accounts.
This means that there will be no minimum balance requirement for the savings account. However, other accounts will continue to have a minimum balance requirement.
In addition to this, SBI also rationalised interest rate on savings bank accounts to a flat 3% per annum.
The country's largest lender State Bank of India (SBI) on Wednesday said it has reduced its fixed deposit rates for certain tenors and marginal cost of funds-based lending rates (MCLR) across various tenors.
Making it a second reduction 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.
Fixed deposits (FDs) maturing between 7 days to 45 days will offer an interest rate of 4.50 per cent as against 4 per cent earlier.
Interest rates on FDs maturing in one-year and above have been reduced by 10 basis points.
One-year to less than two-year tenor FD will earn an interest rate of 5.90 per cent against 6 per cent earlier.
FD for similar tenor will fetch an interest rate of 6.40 per cent instead of 6.50 per cent for senior citizens.
The bank has also reduced interest rates on bulk term deposits (Rs 2 crore and above) by 15 basis points for 180 days and above tenors.
FD rates in the bulk category for tenor of one-year and above will earn 4.60 per cent instead of 4.75 per cent.
In February, the bank had slashed term deposits rates by 10-50 basis points in the retail segment and 25-50 basis points in the bulk segment.