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News You Can Use: ICICI Bank, SBI Slash Interest Rates On Saving Deposits

Team BankBazaar
Photo by Maitree Rimthong from Pexels

ICICI Bank has slashed the interest rate on savings bank accounts by 25 basis points (bps). The new rates will come into effect from June 4.

The bank said that the new rates after the 25 bps cut will be 3% on bank accounts with less than Rs. 50 lakh deposits. The current rate stands at 3.25%.

The bank further added that deposits above Rs. 50 lakh will earn interest of 3.50%, down from 3.75% currently.

Following the RBI suggestions, ICICI Bank has also extended the loan and credit card moratorium scheme to its customers till August 31. A customer can apply for one month at a time. So if you want to avail the moratorium for three months, you need to apply every month, starting from June.

The State Bank of India (SBI) has also reduced its savings deposit interest rate by 5 basis points (bps) to 2.7%. With the revised rates, the interest rate for saving deposits up to Rs. 1 lakh will stand at 2.7 per cent from the 2.75% earlier.

SBI had in May slashed fixed deposit interest rates by 40 basis points (bps) across all tenures effective from May 27. The move comes after the RBI slashed the repo rate by 40 bps to 4% from the 4.40% earlier. Senior citizens will continue to get 0.5% more than the regular interest rates on fixed deposits.

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