State Bank of India (SBI) has reduced interest rates on its savings bank accounts by 50 basis points from June 15. Also, interest rates on fixed deposits of less than Rs 3 crore have been cut by 25 basis points. These new rates have come into effect after the RBI cut the repo rate by 50 basis points.

Impact on bank depositors, especially senior citizens-
The reduction in interest rates on savings bank accounts and fixed deposits by SBI will affect the depositors, especially senior citizens, who depend on the interest received from the money deposited in banks.

This is how much the interest rate became-
State Bank of India (SBI) has changed the interest rate on all savings bank deposit accounts. Now a uniform interest rate of 2.5% will be applicable on all account balances. Earlier, SBI was offering different rates of 2.7% on balances less than Rs 10 crore and 3% on balances of Rs 10 crore or more.

Fixed Deposit Interest Rate-

On fixed deposits or retail domestic term deposits, SBI has cut interest rates for the general public on deposits ranging from 211 days to less than one year to 6.05 percent, from 6.3 percent earlier. The lender has revised the fixed deposit rate for senior citizens in the same period to 6.55 percent, from 6.8 percent earlier.

The revised interest rate for deposits maturing in one year to less than two years is 6.25 percent as against 6.5 percent. Senior citizens will now get interested at the rate of 6.75 percent on the same maturity, while earlier this rate was 7 per cent.

The bank has reduced the interest rate on 2-3 year FDs from 6.7 percent to 6.45 percent. Senior citizens will now get 6.95 percent interest instead of 7.2 percent for the same period. The new rates for FDs of less than 3-5 years and 5-10 years are 6.3 percent and 6.05 percent respectively.