The State Bank of India (SBI), which is the largest public sector bank in the country, has changed its interest rates for savings accounts in June 2025. This update will touch the millions of account holders in India and it will very necessary for the consumers to know the rates and rules connected to them.
Uniform Interest Rate
SBI has set its savings account interest rate to be uniform at 2.50% per annum for all account balances from June 15, 2025. The bank has not only simplified the process but also put an end to the different rates that were given on different balance slabs. This initiative comes just after a 50 basis point cut in repo rate by the Reserve Bank of India in the first week of June 2025.
Why the Change?
The revision is expected to bring deposit rates in line with the current monetary policy and market situation. By setting the uniform rate, SBI has made it very transparent and at the same time very easy for the customers to compute their returns.
Minimum Balance Requirement
The bank offers a zero-balance account facility still under the BSBDA (Basic Savings Bank Deposit Account) scheme. The following is the minimum balance requirement for the regular savings account:
- ₹3,000 for metro and urban branches
- ₹2,000 for semi-urban branches
- ₹1,000 for rural branches
Not maintaining the minimum balance may lead to incurring some nominal penalty charges.
SBI Savings Account Interest Rate 2025 at a Glance
| Effective Date | Interest Rate (p.a.) | Balance Slabs |
|---|---|---|
| June 15, 2025 | 2.50% | Uniform across all balances |
Impact on Customers
The uniform interest rate is a boon for small savers, in terms of ease of operation, but the returns are still low compared to other investment options like fixed deposits or recurring deposits. For instance, an average balance of ₹1,00,000 will yield an annual income of ₹2,500 in the form of interest before tax.
Taxation Rules
The interest income earned on savings accounts is subject to tax under the Income Tax Act. However, an individual can claim a deduction of up to ₹10,000 per year on savings account interest under section 80TTA. A senior citizen is entitled to be covered for fifty thousand rupees under section 80TTB.
Final Thoughts
The SBI’s Latest Savings Account Interest Rate Update 2025 has done away with the existing structure and introduced a uniform 2.50% interest rate on all deposits. Though the returns are low, SBI savings accounts are still a good option for safe and reliable banking services. Investing in fixed deposits, mutual funds, or other avenues might give the customers higher returns but for liquidity and security, SBI savings accounts will always be a trusted choice.