State Bank of India, the largest commercial bank in the country, has introduced a 2-tier saving bank interest rate w.e.f. July 31, 2017. While the balance above Rs 1 crore will continue to earn interest at 4% per annum, interest at 3.5% rate will be offered on balances of Rs 1 crore and below, SBI informed BSE Ltd today.
The decline in the rate of inflation and high real interest rates are the primary considerations for warranting a revision in the rate of interest of savings bank deposits, it said.