SBI reduces savings and fixed deposit interest rates
SBI has cut interest rates on both savings accounts and fixed deposits, starting June 15. Savings account rates are now a flat 2.5% for everyone, down from up to 3%. This follows the RBI's recent rate cut and matches moves by other big banks.
FD rates drop by 25 basis points
FD rates for deposits under ₹3 crore have dropped by 25 basis points. For example, if you lock in your money for about seven months to under a year, you'll now get 6.05% (down from 6.3%). Senior citizens see their rate fall to 6.55%.
Cuts might sting a bit
If you rely on interest income—especially as a senior citizen—these cuts might sting a bit. On the flip side, home loan borrowers could see some relief since lending rates linked to external benchmarks are also down by half a percent, making EMIs a little lighter during uncertain times.