SBI reduced interest on savings account by 0.05%, ICICI Bank reduced 0.25%

Mumbai

State Bank of India (SBI) has reduced the annual interest rate on savings bank accounts by 0.05 percent to 2.70 percent. At the same time, ICICI Bank, the second largest bank in the private sector, has cut the interest rate on savings account by 0.25 percent. SBI has reduced the annual interest rate on savings bank accounts by 0.05 percent to 2.70 percent. As per information available on the bank's website, the revised interest rates have come into effect from May 31.

The bank has two slabs for savings bank account up to one lakh rupees and more than one lakh rupees. SBI has cut interest rates on savings account for the second time in the current financial year. Earlier in April, the bank reduced the interest rate on savings bank accounts by 0.25 percent to 2.75 percent in all slabs.

In addition, the bank on May 27 had cut all maturity term retail term deposit rates by 0.40 per cent. ICICI Bank said in a communication sent to the stock exchanges that it has reduced the interest rate on all deposits of less than Rs 50 lakh to 0.25 percent from 3.25 to 3 percent.

The interest rate on deposits of Rs 50 lakh or more has been reduced from 3.75 to 3.50 percent. The bank has said that the new interest rates on savings account will be applicable from Thursday. Banks are cutting interest rates on deposits as demand for new loans comes down amidst a tight liquidity situation.