Leading banks such as State Bank of India, ICICI Bank and Punjab National bank have cut down interest rates on Savings Account by 5 bps, 25 bps & 50 bps respectively.
It is important to note here that repo rate has already undergone massive rate cuts (115 bps) and most banks have surplus liquidity. The deposit rates may further go down.
The SBI has reduced Savings Account interest by 5 bps, w.e.f May 31, 2020. This is the second time savings deposit rate reduction by SBI in this financial year. The last reduction of 25bps was effected from April 2020.
Earlier on 27 May, the largest PSB in the country had also lowered its FD Interest Rates by up to 40 bps. This was also a second deposit rate cut in the same month.
| ROI w.e.f 31.5.2020 | Previous ROI | |
SBI Accounts with balances up to Rs. 1 lakh | 2.70% | 2.75% |
SBI Accounts with balances above Rs. 1 lakh | 2.70% | 2.75% |
Also Read: SBI Reduces Interest Rate on Savings Account to 2.75%
The ICICI Bank has slashed interest rate on Savings Deposits by 25 basis points to 3% for accounts with a balance of less than Rs 50 lakh and 3.5% for balance of Rs 50 lakh or more. The new rates will be effective from June 4, 2020.
| ROI w.e.f 4.6.2020 | Previous ROI | |
ICICI Bank Accounts with balances up to Rs. 50 lakh | 3.00% | 3.25% |
ICICI Bank Accounts with balances above Rs. 50 lakh | 3.50% | 3.75% |
The state run PNB has reduced savings fund deposit rates by 50 basis points with effect from July 1. To safeguard interest of Senior Citizen, PNB is offering a higher interest rate —75 bps over applicable card rate for all maturities on domestic deposit up to ₹2 crore. PNB is also offering schemes like the Senior Citizens Savings Scheme (SCSS) that provides guaranteed returns to senior citizens.
| ROI w.e.f 1.7.2020 | Existing ROI | |
PNB Accounts with balances up to Rs. 50 lakh | 3.00% | 3.50% |
PNB Accounts with balances above Rs. 50 lakh | 3.25% | 3.75% |
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