State Bank of India, the country’s largest lender, introduced a two-tier interest rate structure for its savings bank accounts, reducing interest rates for most of its depositors.
Accounts with a balance of Rs 1 crore or less will earn 3.5% per annum effective July 31, while those above Rs 1 crore will continue to earn 4% per annum, the bank said in a statement.About 90% of SBI’s savings accounts have balances under Rs 1 crore.
“The decline in rate of inflation and high real interest rates are the primary considerations warranting a revision,” SBI said.The revision would enable the bank to maintain its Marginal Cost of funds-based Lending Rate (MCLR) at existing rates, the lender added.
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