SBI has given notification on it’s site regarding interest rate in savings account in 2019. SBI is linking interest rate of saving account with RBI’s repo rate.

What is the new interest rate of saving accounts in SBI?

SBI has updated that Savings Bank Deposit accounts with balances above Rs. 1 lakh will be 2.75% below RBI’s Repo Rate.

For example, if RBI report rate is 6.25 %, the interest rate of SBI savings account would be 6.25-2.75 = 3.5% per annum.

If RBI increases its repo rate, SBI customers will get the benefit of that.

What is the new interest rate of saving accounts in SBI?

All Cash Credit Accounts, Overdraft Accounts with limits over Rs.1 lakh will be 2.25% above RBI’s Repo Rate.

For example, if RBI report rate is 6.25 %, the interest rate of All Cash Credit Accounts, Overdraft Accounts with limits over Rs.1 lakh would be 6.25+2.25 = 8.50% per annum.

If RBI increases its repo rate, SBI borrowers of CC, Overdraft will have to pay more, but its Repo rate decreases, they will get benefit.

What is repo rate?

It is the rate, at which commercial banks get money from RBI in case of shortage of funds. RBI informs regarding changes of Repo rate on its official site.

Also read: SBI online saving account opening process

Watch this for more info: SBI interest rate in savings accounts (Hindi)