Top Banks Lower Savings Account Interest Rates

Savings account holders will now earn less interest. This is because major banks have cut their rates. These banks include State Bank of India (SBI), HDFC Bank, and ICICI Bank. The cuts follow a decision by the Reserve Bank of India (RBI). In June 2025, the RBI cut the repo rate by 50 basis points. This year’s total rate cut is now 1%. Many private and public sector banks have adopted a uniform lower rate structure. This affects depositors across all balance slabs.

Why Are Banks Lowering Rates?

The RBI’s decision to cut the repo rate is the main reason. Banks are adjusting their deposit returns to match this change. This has also led to a cut in fixed deposit (FD) rates across tenures.

SBI Cuts Rates to 2.5%

SBI is the country’s largest lender. It has set its savings account interest rate to a flat 2.5% per annum for all balances. This change took effect on June 15, 2025. Previously, SBI offered:

• 2.7% for balances below Rs 10 crore
• 3% for balances of Rs 10 crore and above

HDFC Bank Adopts Flat 2.75%

HDFC Bank has set its savings rates to a flat 2.75%. This change took effect on June 10, 2025. The bank previously offered:

• 2.75% for balances below Rs 50 lakh
• 3.25% for balances of Rs 50 lakh and above

ICICI Bank Follows with Similar Changes

ICICI Bank has also revised its interest rate. It is now a uniform 2.75% per annum. This change is applicable from June 12, 2025. Previously, the bank offered:

• 2.75% on balances below Rs 50 lakh
• 3.25% on balances above that

Other Banks Revise Savings Rates

Several other banks have also updated their rates. They are responding to the RBI’s monetary policy move:

• Bank of Baroda: 2.7% to 4.25%, based on balance slabs (effective June 12)
• Federal Bank: 2.5% to 6.25%, based on balance slabs (effective June 17)
• IndusInd Bank: 3% to 5% across slabs (effective June 16)
• RBL Bank: 3% to 6.75%, depending on account balance (effective June 16)