Mumbai, 31 July 2017: State Bank of India (SBI) announced a revised savings bank interest rate w.e.f. 31st July 2017. Under this change, customers with saving bank account balance of Rs. 1 crore and above will continue to earn interest at 4% per annum. And customers maintaining account balance of Rs. 1 crore and below will get interest at 3.5% per annum.
The bank decided to revise the interest rate due to cut in MCLR by 90 basis points to 8% effective 1st January 2017 The reduction was on the back of large inflows in savings & current accounts during the demonetisation period in the months of November & December 2016. The decline in the rate of inflation, high real interest rates and the expected softening of interest rates are the other considerations warranting a revision in the rate of interest on savings bank.
Rajnish Kumar, Managing Director – National Banking Group, SBI said, “The revision in savings bank rate would enable us to maintain the MCLR at the existing rates, benefitting a large segment of retail borrowers in SME, agriculture & affordable housing segments. We encourage people to move to FDR as we expect less volatility and better facilitation due to our strong reach, distribution and franchise network. Reduction in rates was also important as it was difficult to maintain MCLR at the current levels”.
The bank offers to its customers the option of sweep facility in savings bank accounts under which the funds can be transferred automatically above a threshold balance in savings bank account to fixed deposits through online & branch channels.
The details of interest rates on deposits and loans are published on the official website of the bank – https://bank.sbi