The State Bank of India (SBI), on April 7, slashed savings deposit rates by 25 basis points from 3 percent to 2.75 percent, keeping in view the liquidity in the system. The interest rates for balances up to Rs 1 lakh and above Rs 1 lakh will now accrue at 2.75 percent as against the earlier 3 percent.
This interest cut will be effective from April 15. This is the 11th consecutive time the SBI has cut rates.The interest rates for savings accounts are calculated on a daily basis depending on the end of the day balance in the account. The interest will be credited on half-yearly intervals. The rate of interest offered on the balance in a savings account varies from bank to bank.