State Bank of India (SBI) has reduced its savings bank account interest rate to 2.5% for all account balances, effective June 15. This change follows a 50 basis point reduction in the repo rate by the Reserve Bank of India (RBI) last week. Last time SBI cut savings bank rates was on October 15, 2022, where the amount below Rs 10 crore earned an interest rate of 2.70% and amount for Rs 10 crore and above yield 3%.
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For the third consecutive month since April 2025, SBI has also lowered its fixed deposit (FD) interest rates. The bank has reduced its interest rates on fixed deposits below Rs 3 crore by 25 basis points (bps) on different maturities. The new interest rates are applicable from June 15. In last three months, SBI has brought down the fixed deposit rates by 70 bps.
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On fixed deposit rates, SBI has cut interest rates to 6.05% for general public on deposits maturing between 211 days to less than one year, compared to 6.3% earlier. The lender has revised FDs rate to 6.55% for senior citizens on the same tenor, compared to 6.8% earlier. For fixed deposit above Rs 3 crore, general public and senior citizen on deposits maturing less than one year would earn 5.75% and 6.25%, respectively.
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