SBI cuts savings deposit rate by 5 basis points to 2.70%; BoB raises FCNR deposit rates

State Bank of India (SBI) has reduced the interest rate on savings accounts by a marginal 5 basis points to 2.70 per cent effective from October 15.

The new saving rates are applicable on balances of less than Rs 10 crore, on which the bank earlier offered 2.75 per cent per annum interest.

The lowering of rates on savings accounts by SBI comes at a time when the peer lenders have been raising deposit rates to mobilise funds.

Read | IMF praises RBI tightening monetary policy to curb inflation

However, on saving account balances of Rs 10 crore and above, SBI has increased the deposit rates to 3 per cent per annum from 2.75 per cent earlier.

Bank of Baroda on the other hand hiked the interest rates on foreign currency non-resident (FCNR) deposits across various currencies and maturity periods by up to 135 basis points.

The new deposit rates came to effect from October 16, 2022 and will remain in force till November 15, 2022, Bank of Baroda said in a release on Monday.

The revised rates are applicable on fresh and existing FCNR deposits which are renewed on maturity, the lender said.