New Delhi, October 31: If one thing that is going to change from today, it is in relation to your hard-earned money parked in with India’s largest lender State Bank Of India. The interest rate on savings account deposits with SBI will fetch lower interest rates from November 1.
India's biggest bank had announced the rate revision earlier this month. According to which balances of less than Rs 1 Lakh in savings deposits with SBI will get an interest of 3.25 per cent, as compared to 3.5 per cent, from November 1.
So let us quickly go through the five things you need to know:
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1) India’s largest bank SBI called out "adequate liquidity in the system" as a reason to go for the interest rate cut. SBI had also cut interest rate on fixed deposits on select maturities with effect from October 10, 2019.
2) The Reserve Bank of India has lowered repo rate by a cumulative 135 basis points so far this year and has been taking measures to improve liquidity in the banking system and the country.
3) From November 1, balances of less than Rs 1 Lakh in savings deposits with SBI will get an interest of 3.25 per cent, as compared to 3.5 per cent. But there is good news for customers who are having balance above Rs 1 Lakh that SBI will keep interest rate on savings account with balances above Rs 1 Lakh unchanged at 3 per cent per annum.
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4) After the Reserve Bank of India’s rate cut, SBI lowered interest rate on savings account balances above Rs 1 Lakh to 3 per cent. But it has kept the rate unchanged at 3 per cent.
5) Savings account interest up to Rs 10,000 a year is tax free under Section 80 TTA of the Income Tax Act. Senior citizens enjoy a higher limit of Rs 50, 000.
