SBI does a first, cuts savings rate to 3.5% on deposits up to Rs 1 cr

50-bps reduction may prompt others to follow

The country’s largest bank—State Bank of India (SBI) — cut interest rate on savings deposits up to Rs 1 crore by 50 basis points (bps) to 3.5 per cent per annum with immediate effect, setting the stage for other banks to follow suit.

Deposits of over Rs 1 crore will continue to earn four per cent interest per annum, SBI said in a statement.

This is the first rate revision in savings deposit rate by SBI after the Reserve Bank of India (RBI) deregulated savings bank deposit interest rate on October 25, 2011. 

The rate cut in savings accounts also