After the Reserve Bank of India (RBI) reduced the repo rate by 0.50% (50 basis points) in June 2025, many major banks in the country have lowered the interest rates on their savings accounts.
Because of this, bank customers—especially those with high balances—will now earn less interest than before. Customers should now check their bank’s interest rates and plan their savings or investments accordingly.
SBI Slashes Savings Account Interest Rate
India’s largest bank, the State Bank of India (SBI), has set the interest rate on all savings accounts at 2.5% per annum starting from June 15, 2025.
Earlier, SBI offered 2.7% for accounts with less than ₹10 crore and 3% for accounts with ₹10 crore or more. Now, every account will earn the same rate of interest.
HDFC Bank Lowers Rates Too
HDFC Bank has also cut its savings account interest rate to 2.75% per annum from June 10, 2025. Previously, accounts with less than ₹50 lakh earned 2.75%, while those with ₹50 lakh or more earned 3.25%. Now, all accounts will earn a flat 2.75% interest rate.
ICICI Bank Implements Similar Changes
ICICI Bank changed its savings account interest rates from June 12, 2025. Earlier, balances above ₹50 lakh earned 3.25%, and below ₹50 lakh earned 2.75%. Now, all savings accounts will get the same interest rate of 2.75% per annum.
Updated Interest Rates of Other Banks:
Bank of Baroda
Bank of Baroda is now offering savings account interest rates between 2.7% and 4.25%, depending on the deposit amount. These new rates apply from June 12, 2025.
Federal Bank
Federal Bank has revised its savings account interest rates to range from 2.5% to 6.25%, based on the deposit amount. These rates are effective from June 17, 2025.
IndusInd Bank
IndusInd Bank is now offering 3% to 5% interest depending on the balance in the account. These updated rates came into effect on June 16, 2025.
RBL Bank
RBL Bank has changed its savings account interest rates from June 16, 2025. Customers will now get 3% to 6.75% interest depending on the balance in their account.
What Does This Mean for You?
These new changes will mostly affect customers who keep large amounts of money in their savings accounts, as they will now earn lower interest.
The reduction in repo rate is aimed at controlling inflation and improving liquidity in the economy, which has led to this decline in interest rates.
