SBI cuts interest rate on savings accounts to 3%, removes minimum balance requirement

State Bank of India (SBI), the country’s largest lender, has announced a reduction in interest rate on all savings bank accounts to 3 per cent, and also simultaneously removed the minimum balance requirements for savings accounts.

Currently SBI savings bank account holders need to maintain a minimum average balance of Rs3,000, Rs2,000 and Rs1,000 in metro, semi urban and rural areas, respectively. 
Currently, SBI pays interest at 3.25 per cent on savings bank deposits up to Rs1 lakh, and 3 per cent for deposits above Rs1 lakh.
"Bank has also rationalised interest rate on SB Account to a flat 3 per cent p a for all buckets," it said.
“This announcement will bring in more smiles and delight to our valuable customers. Waiving AMB is SBI’s yet another initiative to provide customers a more convenience and elated banking experience. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI,” Rajnish Kumar, Chairman, SBI said in a press release.
SBI has also waived SMS charges for its customers, which will bring significant relief to all the customers.
The SBI earlier today reduced the marginal cost of funds-based lending rate (MCLR) by 10-15 basis points across tenors.
"The one-year MCLR comes down to 7.75 per cent from 7.85 per cent with effect from 10 March 2020. It's the tenth consecutive cut in MCLR in FY20," the country's largest lender said in a statement.
With this, the equated monthly installments (EMIs) on home loans linked to MCLR will get also cheaper.
In view of adequate liquidity in the system, the SBI has realigned the interest rates on term deposits as of 10 March 2020.
SBI has reduced retail term deposit rates by 10 bps for one year and above tenor, and 50 bps for up to 45 days. The bulk term deposit rates have been reduced by 15 bps for 180 days and above tenors.