State Bank of India, Country’s largest bank has announced the new rate of interest on Monday and the new tax rate would be applicable from July 31st itself. SBI slashes interest rates from 4 to 3.5% for all the saving bank accounts with deposits up to 1 crore. As of now, no other bank announced any decrease in interest rates.While bank Accounts with deposits more than Rs 1 crore will remain at 4% interest.
“The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on savings bank deposits,” SBI said in a statement.
The change is immediate and also marks the beginning of two-tier saving bank interest rate with is valid from 31ST July.
SBI’s interest cut has arrived just two days before the RBI monetary policy meet where most of the analysts expect India’s central bank to cut interest rates.After the announcement, the stock value of SBI increased nearly up to 5% to Rs 312.65 while the Nifty remained flat.