SBI pares savings account interest rate to 3%, scraps minimum balance fine

No more SMS charges, Home and auto loan customers to gain as MCLR is slashed by 10-15 bps in tenth such cut this year

In major rate revision, State Bank of India (SBI) has decided to pay interest at a flat 3 per cent per annum to savings bank account holders.

Earlier, it paid 3.25 per cent for balances up to Rs 1 lakh. The rate was 3 per cent for savings bank deposit accounts with balances above Rs 1 lakh.

In a customer-friendly move, it will stop levying fine for failing to maintain average monthly balance in savings accounts. The bank used to levy a penalty of Rs 5 to Rs 15 plus taxes on non-maintenance of average balance, SBI said in statement. It will