State Bank of India has reduced the interest rate on savings account deposits from today. Keeping money lying idle in your savings account will earn you lesser interest than before. With State bank of India reducing the interest rate on savings account, looking at alternative saving options has become a must to look for.
Banks Rate of Interest as on 1st Nov’19
|Bank||Rate of Interest|
|Bank of baroda||3.50%-4%|
|Bank of India||3.50%-4%|
|Bank of Maharashtra||4%|
|Central Bank of India||3.50%-4%|
|Indian Overseas Bank||4%|
|Jammu and Kashmir Bank||3.50%|
|Lakshmi Vilas Bank||4%-6.50%|
|Oriental Bank of Commerce||3.50%-4%|
|Punjab National Bank||3.50%-4%|
|Punjab & Sind Bank||3.50%-4%|
|South Indian Bank||4%|
|State Bank of India (SBI)||3.50%-4%|
|Union Bank of India||3.50%-4%|
|United Bank of India||3.50%-4%|
In the case of state bank of India the interest rate on savings account is linked to the RBI’s Repo rate on balance > Rs. 1 lac. The rate is set at 2.75% below RBI repo rate, with a lower cap of 3% and therefore, for balance above Rs 1 lac, it continues to offer 3%. Generally, the savings bank interest calculation is done on a daily basis on the daily closing balance in the Account and the interest is paid quarterly to customers.
It is advised to keep only emergency funds in a saving account and for balance you can take liquid mutual fund, fixed deposits or other investment options.