SBI customers alert! Your savings account to fetch less interest rate from this date
In what comes as a bad news for State Bank of India’s customers, their bank accounts will attract lesser interest rates in the coming days. I
In what comes as a bad news for State Bank of India’s customers, their bank accounts will attract lesser interest rates in the coming days. India's largest commercial lender has lowered the interest on savings deposit account with effect from Sunday (April 19). The lender recently reduced savings account interest by 25 basis points (bps).
The new SBI savings account rates have been updated on bank's website. It now states that SBI savings account deposits will fetch a lower return of 2.75% instead of 3% return earlier. Till now, the bank was offering interest at the rate of 3% on savings deposits.
"In view of adequate liquidity in the system, SBI realigns its interest rates on Savings Bank Deposits, with effect from 15th April 2020,” the bank said on its official website.
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The bank has been taken several steps in the wake of ingoing coronavirus crisis. It has reduced the marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors. After the latest rate revision, the one-year MCLR has come down to 7.40 per cent per annum from 7.75 per cent per earlier. The new rate came into effect from April 10.
In one of the positive steps, the bank has announced the extension of the timeline for payment of settlement amount by 3 months. Now, SBI customers onboarded under settlement scheme SBI OTS 2019, Rinn Samadhan 19-20 and General SBI compromise settlement scheme can meet payment obligation by June 30, 2020.
"Under One Time Settlement (OTS) 2019, the extension will be available only to those customers where the first two installments of 5 per cent or 15% per cent and 20% per cent or 25 per cent have been received within stipulated time of 30 days and 60 days respectively. The balance OTS amount can be paid by June 30, 2020. Bank will not charge any interest on the amount for this extended period,” it had said in a statement.
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