<p>India's largest public-sector lender State Bank of India (SBI), on Wednesday, cut interest on savings bank accounts to 3% and balanced the move by waiving minimum balance requirement, which could give the lender a number of new customers.</p>.<p>But it also reduced the interest rates on fixed deposits, leaving less money in the hands of pensioners, who invest in this financial instrument.</p>.<p>Fixed deposits (FDs) maturing between 7 days to 45 days will now fetch an interest rate of 4% as against 4.50% earlier.</p>.<p>Interest rates on FDs maturing in one-year and above have been reduced by 10 basis points. One-year to less than two-year tenor FD will earn an interest rate of 5.90% against 6% earlier. FD for similar tenor will fetch an interest rate of 6.40% instead of 6.50% for senior citizens.</p>.<p>Keeping in mind the 'Customers First' approach, the bank said it has also waived SMS charges, which will bring significant relief to all the customers.</p>.<p>"Bank has also rationalised interest rate on SB Account to a flat 3 % p.a. for all buckets," it said in a statement.</p>.<p>Currently, the interest rate on SB accounts is 3.25% for deposits up to Rs 1 lakh in saving accounts, and 3% for deposits above Rs 1 lakh.</p>.<p>"The charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts," it said.</p>
<p>India's largest public-sector lender State Bank of India (SBI), on Wednesday, cut interest on savings bank accounts to 3% and balanced the move by waiving minimum balance requirement, which could give the lender a number of new customers.</p>.<p>But it also reduced the interest rates on fixed deposits, leaving less money in the hands of pensioners, who invest in this financial instrument.</p>.<p>Fixed deposits (FDs) maturing between 7 days to 45 days will now fetch an interest rate of 4% as against 4.50% earlier.</p>.<p>Interest rates on FDs maturing in one-year and above have been reduced by 10 basis points. One-year to less than two-year tenor FD will earn an interest rate of 5.90% against 6% earlier. FD for similar tenor will fetch an interest rate of 6.40% instead of 6.50% for senior citizens.</p>.<p>Keeping in mind the 'Customers First' approach, the bank said it has also waived SMS charges, which will bring significant relief to all the customers.</p>.<p>"Bank has also rationalised interest rate on SB Account to a flat 3 % p.a. for all buckets," it said in a statement.</p>.<p>Currently, the interest rate on SB accounts is 3.25% for deposits up to Rs 1 lakh in saving accounts, and 3% for deposits above Rs 1 lakh.</p>.<p>"The charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts," it said.</p>
