SBI and ICICI Bank Cut Interest Rates on Savings Deposits; Check New Rates

State Bank of India (SBI) and ICICI Bank have cut interest rates on savings deposits by five basis points (bps) and 25 bps, respectively.

SBI savings accounts will now earn 2.7% interest per annum. At ICICI Bank, savings accounts with balance less than Rs 50 lakh will now earn 3% per annum, while those with balance of  Rs 50 lakh and more will yield 3.5%.

SBI’s is currently the lowest savings rate being offered in the banking system, followed by that of ICICI Bank. Savings deposits with HDFC Bank and Bank of Baroda (BoB) yield a little more at 3.25%.

In two back-to-back monetary policy reviews, the monetary policy committee (MPC) has lowered the repo rate by 115 bps between March 27 and May 22. As a portion of banks’ loan books are now linked directly to the repo, they have been quick to pass on the rate cuts to deposits as well.