After the Reserve Bank of India (RBI) reduced the repo rate by 0.50% (50 basis points) in June 2025, several major banks in the country have lowered the interest rates on their savings accounts.
As a result, customers—especially those with large balances—will now earn less interest than before.
It is important for account holders to check their bank’s updated interest rates and plan their savings or investments wisely.
SBI Cuts Savings Account Interest Rate
India’s biggest bank, the State Bank of India (SBI), has revised its savings account interest rate to 2.5% per year, effective from June 15, 2025.
Earlier, SBI gave 2.7% interest for balances below ₹10 crore and 3% for balances above ₹10 crore.
Now, all account holders will receive the same 2.5% interest rate, no matter the amount.
HDFC Bank Reduces Interest Rate
HDFC Bank has also reduced its savings account interest rate to 2.75% per year from June 10, 2025. Before this, accounts with less than ₹50 lakh earned 2.75%,
and those with ₹50 lakh or more earned 3.25%. Now, all accounts will get a uniform interest rate of 2.75%.
ICICI Bank Follows the Same Path
ICICI Bank has updated its savings account interest rates starting June 12, 2025. Earlier, customers with balances above ₹50 lakh earned 3.25%,
and those below ₹50 lakh earned 2.75%. Now, every savings account will get a flat 2.75% per year interest rate.
Revised Interest Rates in Other Banks:
Bank of Baroda
Bank of Baroda now offers savings account interest rates between 2.7% and 4.25%, depending on the deposit amount. These new rates are effective from June 12, 2025.
Federal Bank
Federal Bank has changed its interest rates to between 2.5% and 6.25%, based on how much money is in the account. These rates apply from June 17, 2025.
IndusInd Bank
IndusInd Bank is now offering interest between 3% and 5%, depending on the account balance. These updated rates took effect on June 16, 2025.
RBL Bank
RBL Bank has revised its savings interest rates from June 16, 2025. Customers will now earn between 3% and 6.75%, depending on their account balance.
How Will This Impact You?
These changes will mostly affect people who keep high amounts in their savings accounts, as they will now earn less interest.
The RBI’s decision to reduce the repo rate was made to manage inflation and improve money flow in the economy. This move has led to lower interest rates across banks.
