6 Major Banks Including SBI, HDFC, and ICICI Cut Savings Account Interest Rates — Check New Rates

Savings Account Interest Rate Update: After the Reserve Bank of India (RBI) cut the repo rate by 0.50% (50 basis points) in June 2025, several major banks in India have reduced the interest rates on their savings accounts.

Because of this, customers will now earn lower interest on the money kept in their savings accounts, especially those who maintain large balances.

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It’s important for customers to review the new interest rates and plan their savings or investments accordingly.

SBI Reduces Savings Account Interest

The State Bank of India (SBI), the country’s largest public sector bank, has made the interest rate uniform at 2.5% per annum for all savings accounts starting June 15, 2025.
Earlier:

Below ₹10 crore: 2.7%

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₹10 crore or more: 3%
Now:

All balances: 2.5%

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HDFC Bank Also Cuts Rates

HDFC Bank has also revised its savings account rates from June 10, 2025.
Earlier:

Below ₹50 lakh: 2.75%

₹50 lakh or more: 3.25%
Now:

All balances: 2.75% per annum

ICICI Bank Makes Similar Change

ICICI Bank has changed its savings interest rate from June 12, 2025.
Earlier:

Below ₹50 lakh: 2.75%

₹50 lakh or more: 3.25%
Now:

All balances: 2.75% per annum

Interest Rate Updates from Other Banks

Bank of Baroda (from June 12, 2025): Interest ranges from 2.7% to 4.25%, depending on the account balance.

Federal Bank (from June 17, 2025): Offering between 2.5% and 6.25%, based on the deposit amount.

IndusInd Bank (from June 16, 2025): Interest rates between 3% and 5%, depending on balance slabs.

RBL Bank (from June 16, 2025): Revised rates now range from 3% to 6.75%, based on how much money is in the account.

What Does This Mean for Customers?

These changes will mostly affect customers who keep large amounts of money in their savings accounts, as they will now earn less interest than before.

The interest rate cuts are a result of the RBI’s repo rate reduction, which is meant to control inflation and increase liquidity in the economy.

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