Bank of India cuts savings account rates by 25 bps; check all details

The Bank of India (BOI) cut its savings deposit rates by 25 basis points (bps) on Monday, July 7. Savings bank deposits, or savings bank accounts, allow individuals to deposit money and earn interest on their balances. They are a safe and convenient way to store money and earn a decent interest on the savings.

With the recent 50 bps repo rate cut announced by the Reserve Bank of India, bringing the total repo rate cut to 100 bps (1%), banks have been lowering their lending as well as deposit rates. With a lower repo rate, banks can borrow money from the RBI at a cheaper rate, eliminating the need for banks and financial institutions to offer high interest rates to customers on their deposits. A lower repo rate generally translates to lower fixed deposit (FD) rates as well. 

Other banks have also lowered their interest rates on savings deposits after the repo rate cut announcement. Major banks, including State Bank of India (SBI), HDFC Bank and ICICI Bank, have revised their deposit rates multiple times in the last few months. These three banks are now offering 2.5% on their savings bank deposits across all account balances.