Archive · 18 Jun 2025
Indian Banks Cut Savings Interest Rates After RBI Move
Banks like SBI, HDFC, and ICICI are paying less interest on your savings accounts.
This is because the government lowered a key interest rate.
SBI now pays everyone 2.5% interest.
HDFC and ICICI are paying everyone 2.75%.
This means people will earn less money on their savings, especially those with a lot of money in the bank.
Top banks like SBI, HDFC, and ICICI reduced savings account interest rates.
SBI's savings account interest rate is now a uniform 2.5% per year from June 15, 2025.
HDFC Bank set a uniform rate of 2.75% per year, effective June 10, 2025.
ICICI Bank also set a uniform rate of 2.75% per year, effective June 12, 2025.
The RBI lowered the repo rate by 50 basis points in June 2025.
- Who
- SBI, HDFC, ICICI, and other banks, as well as the Reserve Bank of India (RBI).
- What
- Several top Indian banks have reduced savings account interest rates.
- When
- June 2025 (various effective dates).
- Where
- India
- Why
- In response to the RBI lowering the repo rate.
Savers
Banks
Impact on Savings
Savers
Lower returns on savings.
Banks
Increased financial flexibility for banks.
- SBI New Rate
- 2.5% per year
- SBI Effective Date
- June 15, 2025
- HDFC New Rate
- 2.75% per year
- HDFC Effective Date
- June 10, 2025
- ICICI New Rate
- 2.75% per year
- ICICI Effective Date
- June 12, 2025
- RBI Repo Rate Cut
- 50 basis points
Sources
With FD interest rates on a downswing, is this the right time to switch to small savings schemes?
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