SBI, ICICI, HDFC And 2 Other Banks Reduce Interest Rates On Savings Bank Accounts

Five banks, including the State Bank of India (SBI), Central Bank of India, Bank of Baroda (BOB), HDFC Bank, and ICICI Bank have reduced their savings bank account interest rates during last week. In the wake of the Reserve Bank of India’s (RBI) repo rate cut, banks have cut not only their fixed deposit interest rates but also their savings account rates. The change in deposit rates is also due to the change in cash reserve ratio (CRR) requirement. RBI reduced the CRR from 4 per cent to 3 per cent, which will be implemented in four tranches of 25 bps each starting from September 6, October 4, November 1, and November 29, 2025. 

State Bank Of India

The largest public sector bank has reduced its savings bank (SB) account interest rates effective June 15, 2025. Now, it offers 2.5 per cent per annum across all account balances. Earlier, it would offer 2.7 per cent interest based on the account balances. The offered interest was 2.7 per cent in accounts with less than Rs 10 crore balance, and 3 per cent for more than Rs 10 crore balance accounts. However, the rates are now the same across all SB accounts.

Central Bank Of India

The Central Bank of India revised its SB interest rates on June 10, 2025. Now the rates range from 2.70 per cent to 4.50 per cent, depending on the balance at the end of the day. The bank reduced the rates by 10 bps only for SB accounts with balances up to Rs 10 crore. The revised interest rate is 2.70 per cent.

Other buckets of SB account interest rates remain the same. It is 3.00 per cent for account with above Rs 10 crore to Rs 100 crore balances, 3.10 per cent for above Rs 100 crore to Rs 250 crore balance accounts, and 3.25 per cent for above Rs 250 crore to Rs 500 crore balance accounts. SB accounts with balances above Rs 500 crore to Rs 1,000 crore, and above Rs 1,000 crore, the rate of interest is 3.75 per cent and 4.50 per cent, respectively.

Bank Of Baroda

The SB account interest rates in Bank of Baroda now range from 2.70 per cent to 4.25 per cent. It offers interest based on the account balance and offers 2.70 per cent on accounts with a less than Rs 50 lakh balance, 2.75 per cent with a Rs 10 crore to less than Rs 50 crore balance, and 3.00 per cent on accounts with Rs 50 crore to less than Rs 500 crore. The rate of interest is Rs 4.00 per cent and 4.25 per cent for SB accounts with balances within Rs 500 crore to Rs 1,000 crore and Rs 1,000 crore and above, respectively. 

HDFC Bank

This private sector bank revised its fixed deposit and SB account interest rates during the week ending on June 14, 2025. It has reduced the SB rates by 50 basis points. The bank revised SB interest rates previously on April 12, 2025, and offered 3.25 per cent interest in accounts where a minimum Rs 50 lakh balance was maintained and 2.75 per cent in accounts with lower balances. After the revision on June 10, 2025, its SB account interest rate is 2.75 per cent for all HDFC bank accountholders irrespective of account balance. 

Note that the bank had higher SB interest rates prior to the change in April 2025. From April 6, 2022, to April 11, 2025, these were 3.50 per cent and 3.00 per cent for account balances of Rs 50 lakh and above and less than Rs 50 lakh, respectively. 

ICICI Bank

ICICI Bank has also reduced its rates for all SB accountholders by 50 bps effective June 12, 2025. The interest rate is the same across SB accounts irrespective of the balance maintained. Previously, it offered different interest rates ranging from 2.75 per cent to 3.00 per cent based on the balances maintained in the account.