SBI cuts savings rate to 2.50%; retail TDs rates down by 25 bps

With the latest bulk TD cut, the highest interest rate the Bank is offering is 6.25 per cent (6.50 per cent earlier) on TD of one year to less than two years tenor.
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ABEER KHAN

State Bank of India (SBI) has cut the interest rate on savings bank (SB) deposits across all account balances to 2.50 per cent in the backdrop of surplus liquidity in the banking system, the 100 basis points cut in the repo rate since February 2025 and the 100 basis points cash reserve ratio cut, which will kick-in in four stages from September.

The cut, which is likely to prompt other banks to follow suit, is with effect from June 14^th. So far, India’s largest bank was paying customers 2.70 per cent interest on SB balances below ₹10 crore and 3 per cent on balances of ₹10 crore and above.

Simultaneously, SBI has cut interest rates on retail domestic term deposits/ TDs (below ₹3 crore) by 25 basis points across the board with effect from June 15^th.

With the latest retail TD cut, the highest interest rate the Bank is offering is 6.45 per cent (6.70 per cent earlier) on TD of two years to less than three years tenor.

The interest rate of specific tenor scheme of “Amrit Vrishti” (444 days)has also been revised from 6.85 per cent to 6.60 per cent with effect from June 15^th.