SBI reduces interest rate on savings accounts to 2.70%

State Bank of India SBI has reduced the interest rate on savings accounts by a margin of 5 basis points to 2.70 per cent effective from October 15.

The bank earlier offered 2.75 per annum interest on balances less than Rs 10 crore, which is now subject to the new savings rates.

The lowering of rates on savings accounts by SBI comes at a time when peer lenders have been raising deposit rates to mobilise funds.

SBI has increased deposit rates by 3 per cent per annum on saving account balances of Rs 10 crore and above, compared to 2.75 per cent earlier in the day.

The Bank of Baroda hiked the interest rates on foreign currency non-resident FCNR deposits across various currencies and maturity periods by up to 135 basis points.

The new deposit rates will be in force until November 15, 2022 and will remain in force until November 15, 2022, Bank of Baroda said in a release on Monday.

The lender said that the revised rates are applicable on new and existing FCNR deposits that are renewed on maturity.