Top banks cut savings account rates after RBI rate cut decision; SBI drops to 2.5%, HDFC and ICICI now at 2.75%

Savings account holders will see reduced returns as major banks, including State Bank of India (SBI), HDFC Bank, and ICICI Bank, have lowered their interest rates following a 50 basis point repo rate cut by the Reserve Bank of India (RBI) in June 2025. The cumulative rate cut for this year now stands at 1%. Several private and public sector banks have shifted to a uniform lower rate structure, impacting depositors across balance slabs.SBI slashes rates to 2.5% flatSBI, the country’s largest lender, has revised its savings account interest rate to a uniform 2.5% per annum for all balances, effective June 15, 2025, according to an ET report. Previously, the bank offered 2.7% for balances below Rs 10 crore and 3% for balances of Rs 10 crore and above.HDFC Bank moves to flat 2.75%HDFC Bank has aligned its savings rates to a flat 2.75%, effective June 10, 2025, eliminating the previous differential. The bank earlier offered 2.75% for balances below Rs 50 lakh and 3.25% for balances of Rs 50 lakh and above.ICICI Bank follows with similar revisionICICI Bank also revised its interest rate to a uniform 2.75% per annum, applicable from June 12, 2025. Previously, the bank offered 2.75% on balances below Rs 50 lakh and 3.25% on balances above that.Other banks also revise savings ratesSeveral other banks have also updated their rates in response 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)

The rate revisions come as banks adjust deposit returns to align with the easing interest rate cycle, which has also triggered a cut in fixed deposit (FD) rates across tenures.

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