The India's largest government bank, State Bank of India (SBI) is going to make a big difference in its interest rates. From May 1, interest rates on SBI deposits and loans will be linked to RBI's benchmark rate. This will change the rate of deposits and loans along with changes in the repo rate from RBI. SBI doing this has become the first bank in the country.
This rule will apply only on deposits of more than Rs 1 lakh and interest rates on loans. The repo rate will get higher interest only According to the existing repo rate, the savings account will have less interest on deposits of more than Rs. 1 lakh in comparison to the accounts with less balance. Not only this, this interest rate is also 0.75 % lower than the 4 % interest rate on the post office Savings Account.
However, if the repo rate increases by 6.25%, then SBI will have 3.5% more interest than the Savings Savings Account on the Big Savings Account. Keep in mind five things - The savings account with accumulated deposits of more than Rs. 1 lakh will be linked to the exclusively benchmark. These accounts will be charged from 1st May to 2.75 percent or repo rate below 275 basis point.
At present, the repo rate is 6%, hence from tomorrow, the Savings Account will get an interest of 3.25% annually. - In March, the bank had said that small account holders and small creditors would be protected against the movements of the exchanges. Following this, the bank has not added the account holders with deposits of upto Rs 1 lakh and the repatriation rate for the overdraft limit up to Rs 1 lakh and the creditors with cash credit account. - The interest rate for the other accounts will remain the same as the RBI has decided.
That is, an account with less balance of less than Rs. 1 lakh will get 3.5% interest. - SBI currently gets a 3.5% interest rate on the savings account with deposits of up to Rs 1 crore. Deposit accounts with more than Rs.
1 crore get a 4% interest rate. - All cash credit accounts and overdrafts up to Rs. 1 lakh will also be linked to the benchmark policy rate. It can be given an additional limit of 2.25 percent. This risk will be determined by looking at the risk profile of the Risk Premium creditor next to this limit. .
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