“We wish to inform you that it has been decided to introduce a 2-tier savings bank interest rate (from) August 5…,” the bank said in a regulatory filing.
Effective tomorrow, the interest rate on savings bank balance of up to Rs 50 lakh has been reduced to 3.5 per cent from the current annual 4 per cent.
However, for balance above of Rs 50 lakh, the bank has retained the rate at 4 per cent.
However, SBI continues to offer 4 per cent interest on savings account balance of Rs 1 crore and above.
More banks are likely to follow suit.