Search your Topic HERE....

July 31, 2017

SBI cuts Interest Rate on Savings Account Deposits - 1st Time in 6 Years

Leave a Comment

sponsored links

For the first time in 6 years, India's largest lender State Bank of India (SBI) has cut the interest rate on Savings Bank Accounts  to 3.5 per cent from 4 per cent on balance of Rs 1 crore and below. This decission will impact about 90 per cent of SBI's customers. SBI's savings bank account base is of around Rs 9 lakh crore. 

What does this mean ?

This means that those accounts with a balance of Rs 1 crore or less will earn 3.5% per annum from July 31 while those accounts with a balance of above Rs 1 crore will continue to earn 4% per annum.

Main Reasons behind this cut in Interest Rate

  • The level of inflation in the economy has fallen, allowing depositors to earn higher real interest rates on deposits.
  • Demonetisation has led to a flood of deposits into the banking system. Nearly 60 percent of the deposits that came into the system have proved to be sticky, as RBI Deputy Governor SS Mundra told BloombergQuint in an interview earlier this month.
Note : The bank's decision comes two days ahead of the monetary policy meet of the Reserve Bank of India (RBI)  where most analysts expect India's central bank to cut key interest rates.

sponsored links

0 Responses:

Post a Comment

Related Posts Plugin for WordPress, Blogger...