SBI cut intrest rates on saving deposits

Mumbai, July 31: A shock has been received. The State Bank of India today has announced a key decision.

*Interest rate on savings bank deposits have been reduced to 3.5 % for deposits below RS 1 crore.

* Currently 4 % Intrest would be obtained when a person deposits amount below RS 1 crore in his savings account.

* The interest rates for deposits above RS 1 crore has not changed and will continue to earn 4 per cent interest.

Experts say that the bank has taken this decision because of lower inflation and high real interest rates and they expect that many banks will follow the suit.

The bank has said, "there has been a significant outflow of the current account, savings account deposits post-demonetisation so we have decided to cut the interest rates".